The benefits of business digitalization include improved efficiency, better data analytics, increased customer service and engagement, and the capability to automate processes. Additionally, business digitalization allows businesses to conduct inexpensive experiments with new strategies and ideas in a safe, secure environment.
In the past, the majority of business records were typed or written in ledgers. To share the information with colleagues, you had to physically send or mail the document. As computers became more prevalent businesses began to convert their ink-on paper documents into digital files. This process is known as digitization, and forms the basis of many modern tools and practices in business.
Increasing Efficiency
Digitalization enables people to be more efficient and productive which allows them to complete projects and meet deadlines in a timely manner. Additionally, digitalization could help businesses cut expenses by automatizing certain processes and freeing up employees to focus on important tasks.
Improve Customer Service and Engagement
Information on interactions of customers with products and services can be gathered by businesses using digitalization. The information can be used to improve customer experience, boost revenue and boost loyalty. In addition, digitalization has enabled companies to provide customized products and experiences for each customer.
It’s important to note the difference between digitalization and digitization, in that the former refers converting data to digital form while the latter is the use of that information to drive change in models and processes for business.