The exponential growth in digitization and internet connectivity is the backbone of the Fourth Industrial Revolution. Today, digitization is happening all around the world and this has increased the demand for document scanning solutions. Digital transformation involves the change to digital process based on IT infrastructure, digital application and optimally networked systems and data. Digitizing refers to creating information from information such as conversion of analog audio items into its digital format. In a business context, analytics can be considered as further digitizing the information to create new insights in order to make informed decisions. However, without clearly understanding the daily process of a company it is not possible to implement changes or automate process or make improvements in an organized, manageable and predictable manner.
In many companies the process of automation and digitization initiatives was more expensive and less efficient than what was expected. This is because they were too narrowly focused. According to a report by DHL (Deutsche Post DHL Group), out of 350 supply chain and operational professionals surveyed, 95 percent of companies haven’t seen the full benefits of digitization. The respondents stated that the reasons for the poor results are:
- New technology is developing quickly so that businesses find it challenging to keep up with innovations and best practices.
- Organizational challenges prevent technology from being implemented properly, effectively and efficiently.
The report stated that 73 percent respondents are investing in Big Data Analytics, 63 percent in cloud-based applications and robotics, 54 percent in the internet of things, 51 percent in block chain, 46 percent in machine learning, 40 percent in autonomous vehicles (AVs), 34 percent in the sharing economy, 33 percent in 3D printing, and 28 percent in augmented reality and drone.
A well-planned approach is vital to implement change and keep up with new technology, otherwise it can lead to a downfall.
The companies that admitted that they haven’t seen any significant benefits from modern digital technologies should understand that there is nothing wrong with the technology but implementation of these technologies is a factor that matters. Sometimes companies do not have the resources and the manpower to implement these technologies efficiently. Recent news about McCormick and General Electric shows that a top down approach to big company changes is the ideal way to transform how business is done. These technologies are new, so it is too early to judge how well companies are implementing them. But as we move forward new technology may lose popularity and companies may not find good use for it.
Companies That Have Benefited from Digitization
- General Electric: In 2013, GE launched a cloud service for customers of its jet engine, medical technology, power turbine and other industrial equipment. The cloud service provides access to analytics software which they can use to improve the ways they use GE’s product. For e.g. utility companies can run simulation on water and gas turbines supplied by GE, this in turn helps electricity plant managers better deal with spikes in demand, minimizing emission and fuel cost.
- Domino’s: Dominos pizza magnificently launched and integrated the technology to let customers place orders from any computer, laptop or smart device with internet access. They can enter orders into the Dominos dedicated business website where they can also tweet and text emojis. Today Dominos is working on voice activated virtual assistant, having the ability to recognize and assist all of the different methods people could order food through speech.
- Capital One: It has constructed a massive banking and credit card business. Their mobile banking app was among the first to implement Apples’ Touch ID biometrics software. In 2016, Capital One introduced voice-activated financial service dealings through Alexa, Amazon’s virtual assistant. The experts claim that winners in the banking industry are going to be those who can identify technology categorically aimed at playing a principle role in how their customers would like to do banking in the future.
Digitization is transforming the world and modern technologies are changing the way how people interact and communicate. It has provided new opportunity and possibilities for companies to improve their production process and better position themselves in the market. Following are the advantages of embracing digitization:
- Better productivity: Digital transformation helps to evaluate all production processes, analyze each step and identify problems. It allows businesses to be more efficient. According to a study “Walking the digital tightrope” published by Fujitsu, the companies that have embraced digitalization have improved their efficiency by 39 percent.
- Minimize operation cost: Digitization helps to reduce operating cost up to 20 percent and improves efficiency. Efficient cost management facilitates effective control of production or sales process. It also allows companies to create new business models and revenue.
- Strengthens brand: Digitization not only implies a greater smoothness of internal processes but also gives the organization a competitive advantage in the market.
- Opens new market possibilities: Business digitization enables incursion into new markets. With digitization every one can have good digital communication strategy and the right logistics to reach new markets.
- Internal process integration: Digitization allows business systemization and organizational development. This process increases consistency in work output as everyone is doing the same job and following the same instructions. As there is a standard process to work from, it assures effectiveness and efficiency. It also facilitates alignment of objectives of the company, employees and customers.
- Better customer experience: The main advantage of business digitization is that it helps to provide a better customer experience and improves communication with the customers. Digitization helps to generate a closer bond with clients and prospective customers and create added value for them. Digitization also allows the use of new sales channels like e-commerce or social media networks.
Today digitization is transforming business models, policy landscape and social norms. Automation, optimization, autonomy of processes as well as more flexibility and individuality of products and services are just some of the benefits and opportunities of digitization. A company can digitally transform with the help of document conversion services and thereby improve efficiency and productivity.