Digitization in Business World
Technological progress has undoubtedly improved our lives in all areas. It has changed the way we function, travel or even talk. But it also has changed the way we work. This technological progress is also connected with the process of digitization. What is digitization and what does it have in common with business? In fact, quite a lot.
According to Wikipedia, digitization is:
[…] the process of converting information into a digital (i.e. computer-readable) format, in which the information is organized into bits. The result is the representation of an object, image, sound, document or signal (usually an analog signal) by generating a series of numbers that describe a discrete set of its points or samples. The result is called digital representation or, more specifically, a digital image, for the object, and digital form, for the signal. In modern practice […], strictly speaking, digitizing simply means the conversion of analog source material into a numerical format; the decimal or any other number system that can be used instead.
To put it simply, digitalization means turning any piece of information from the analog form, into digital form. Probably the most popular example is making an electronic version of a book (e-book) from the paper form. The reason why digitization plays such an important role in the business world is the fact that it makes work much faster, smoother, and efficient. This phenomenon happens in all companies nowadays, even though some may not realize it.
How Is Digitization Changing Business World?
Digitization is so important in our work and in the business world because it contributes to its constant change and development. Work doesn’t look as it used to 20 or 50 years ago. It became more elastic and is being constantly modified. And here are the 5 ways in which digitization is changing business world:
Artificial Intelligence (AI)
There has been an intense debate on the artificial intelligence over couple last years. And whereas some people (such as moviemakers) have rather dark predictions concerning the AI, in reality, it’s quite the opposite. According to the research conducted by BCG and MIT Sloan Management Review:
Three-quarters of executives believe AI will enable their companies to move into new businesses.
Almost 85% believe AI will allow their companies to obtain or sustain a competitive advantage.
However, AI has already changed the business world to such an extent, that companies use it to automatize work and certain activities. Among them is performing data analysis, creating algorithms, or even improving the communication between the company and clients.
Thanks to the digitization we can choose how to work and when to work. With all the data and information being stored on digital media and devices, we can easily transform it and access it from anywhere. Technological progress and digitization made it possible to adjust work schedule to our personal needs and lifestyle. Since many services are provided with the use of technological tools, more and more companies rely on freelancers and remote workers as they can deliver their work via internet and varied platforms. And sometimes much faster than those working in the office.
Digitization is not only about transferring data into the electronic thing but also about using these things and finding new ways of developing them. There are so many new, innovative solutions on the market. And they can be applied to almost any aspect of the business world. Innovation in technology helps companies to come up with new ideas, reach a wider audience, use special tools for organizing and managing work, but above all, create a better product which makes customers happy, satisfied, and enhances their daily life.
New Business Models
Digitization made it possible to create many new business models. But it’s not only that. With all the information and tools available online, companies can create business models adjusted to their own needs. They can apply new ideas to old strategies, play with resources and in result build something completely different, brand-new, and often innovative. This plays a big role in delivering a perfect product and wasn’t available before the era of digitization.
Communication is one of the most important aspects of our lives, and work in particular. Without a proper communication, a business cannot thrive and develop the right product. The lack of right information transfer leads to misunderstandings and conflicts. Luckily, there are many tools and channels via which a business can communicate, both with the employees and clients. There are various platforms enabling a smooth exchange of information, and even files, documents, etc. For example Skype, Slack, blogs, videos and even Facebook. Moreover, there are other “tools” enabling communication and exchange of thoughts, such as blogs and websites, conferences, coaching sessions, or business meetings. All that is possible thanks to the digitization.
To Sum Up
If it wasn’t for digitization, the business world would be boring. Digitization, thanks to technological progress, makes it possible for the business world to develop and create new opportunities for companies, entrepreneurs, and self-employed workers. We should take advantage of the great possibilities digitization is giving us, especially when it comes to developing our own brand and achieving success.
If you want to know what is the level of your business and services digitization, and what is the risk of it being too high, make sure to take part in MIT survey and get your results in just a few seconds!