Authored by Mr. Balpreet Singh, Head of Center of Emerging Technologies (CET), Fujitsu Consulting India Pvt. Ltd.
Over the past decade, digital technology has had a significant impact on the way business’ function and grow. With the greater application of technologies, such as AI, business landscapes are constantly evolving to keep pace with tech advancements. The pandemic has also been an important catalyst for change in terms of digitisation. Before 2020, some businesses could afford to just adopt technology in a limited manner and not make significant investments in it, however, Covid led to a shift in this status quo. Businesses, today, are acutely aware of the need to embrace digital technology because their customer base is adapting quicker than expected.
Before we understand the role that digitisation has played in the business world, it is important to make a distinction between digitisation and digitalisation. Although used interchangeably, the two aren’t the same. Digitisation entails the conversion of analogue data into digital formats. In essence, it is the very first step on the road to digital transformation wherein information is encoded so that it can be processed, stored, and eventually transmitted electronically. Digitalisation, on the other hand, is the second step; it involves leveraging technology to improve existing processes and business models to increase revenue and reduce costs for companies. Using cloud computing to store and share documents, or creating automated workflows to streamline e-commerce operations, are classic examples of digitalisation. Both digitisation and digitalisation form the bedrock for the eventual digital transformation of businesses.
How digitalisation is helping businesses to change one step at a time -
If one were to answer the question of how exactly does digitalisation help businesses and why should business owners and companies consider moving towards it, the following points would make it to the answer.
Streamlining business processes:
For businesses across the world, the adage “Time is Money” still rings true. Today, for companies to run successfully, operational processes must be seamless and fast. By deploying digital technologies such as analytics and cloud storage, businesses can become more collaborative and agile, with enhanced productivity as the result. For companies that are sharply focused on creating new and innovative products, laying the groundwork for digitalisation is a must. Whether it is predictive maintenance that anticipates IT-related glitches before they happen or implementing internal project management systems that get rid of the need to manually update progress reports, digitalisation can provide a much-needed boost to businesses.
Conducive environment for growth:
To build a solid customer base in today’s competitive market environment, businesses need more than just word of mouth publicity. An online presence not only lends credibility to a business but also helps to generate more leads, ultimately translating into more business. Apart from reaching buyers across geographies, having robust and optimised digital tools can also help businesses to gather valuable customer feedback and data about behavioural patterns, buying preferences and much more.
Delivering greater value to end customers:
Digitalisation helps businesses to align with changing market needs and makes them aware and sensitive to the end customer’s demands. It also provides an insight into what they need to do next to adjust demand and supply at a faster pace for customers who are looking for quicker responses and realisation of their asks. Overall, the adoption of digital technologies stands to deliver value to the end customers by bringing the customer into focus and improving their experience. Whether it is the implementation of ERP or CRM systems that alter the pace of delivery for businesses or the use of cloud technology for business transformation, companies have repeatedly been able to improve turnaround times and productivity through digitalisation.
As technologies evolve and continue to simplify the way business is conducted, the spending towards digitalisation will continue to rise. In fact, as per the latest estimates, by 2024, global spending on digitalisation and digital transformation is set to touch a whopping $2.8 trillion. Businesses across the world are, thus, poised to identify and adopt digital initiatives at a faster pace to stay ahead of the game.
