This results in varying service quality and your business reputation can take a hit as you scale. Some of the best ways to achieve this are: Knowing which metrics are most important to company success – the key to getting impact from data is knowing what your organization wants to get from it. In order to stay relevant in an ever changing market, it is important to stay up to date with customer demands as well as market evolution. Hail the era of indirect sales. Companies need to develop digital strategies and focus on what are the key success factors of digital transformation. Digitalization of business helps to improve the efficiency of its process, consistency, and quality. People nowadays are only expecting comfort and quality. Consequently, before articulating a strategic digital vision, it is important to understand the difference between digitization, digitalization and digital transformation, all of which implies a massive change in business practice: If you’re a business owner who hasn’t digitalized their business processes yet, you are missing out. And that’s why you need to keep up. Business digitalization has many benefits. While such changes will not happen overnight, they certainly are already happening. Since the invention of the computer, it has made everything easy and digital. Companies today are requesting tools to ease administration while increasing efficiency, more than ever before. Digitalization in many cases proves to be a prerequisite for success nowadays. Increases interaction with customers. It is important to remember that it is the information you’re digitizing, not the pro… Read more in Danish here. Understanding Digital Transformation . Acubiz has compiled a list of 5 reasons why increased focus on digitalization is an important step to company growth. Expands global reach. No matter how much training you provide for your staff, this is something that you can’t avoid. Several studies point to a positive correlation between productivity and digitization – e.g. Asides from taking unnecessary time to complete, these tasks also make collaboration more difficult. When you digitalize and automate as many tasks as possible, your monthly operational costs will drop. Read more in the article “Digital disruption has only just begun”. This phenomenon happens in all companies nowadays, even though some may not realize it. This is especially true if you are a business with many small details that need to be taken care of. For example, if you have a port management agency, digitalization can help you operate with fewer agents. In this article, when I say digitalization, I am referring to the process by which organizations move from the typical analog to digital processes. Digitization, by its essence, refers to the conversion of information like pictures or sounds into ones and zeroes or a digital form that can be stored, processed, and transmitted by computers. The Digital Accountancy – Part 3: Why your bookkeeping practice is important, Working from Home: How to keep your administrative business processes intact. More than 80% of Germans use their smartphones to communicate with Whatsapp, to shop or use streaming services. Your team can easily coordinate work and see what everyone else is doing. There are many reasons why companies are making this change: Save Cost; Global Reach Digital technologies are something that every business needs to take advantage of. Our solutions scale with your business, so you can focus less on the technical issues, and more on growing your business. This is due, in part, to the fact that manual typing takes time, costs money and removes focus from companies’ core services. the study “ICT, Innovation and Productivity Growth“, made for the Danish Business Authority, which has shown that productivity grows on average 2,4 percentage points faster in companies who focus on digitalization. You also have the option to opt-out of these cookies. Companies are having a much more difficult time adapting to digitalization. That’s why combining a skilled human staff with digitalized business processes allows you to reduce human-caused errors to a minimum and help your business perform better. Once you have the right tools set up, you’ll see your business as you’ve never seen it before. Physical receipts fade quickly, the text becomes unintelligible, they get lost easily and take up a lot of space in the archives. “Increased digitization can make companies more productive and enhance competitiveness” says Danish Minister for Growth and Business Troels Lund Poulsen in a press release (in Danish) and points to the Danish study “Report on Growth and Competitiveness” that shows that higher productivity, more cost efficient processes and fewer errors in production are among the advantages of digitization. Since most of the work you do is digitalized, you can easily scale your business to accommodate more clients. Teams that don’t work well together rarely see any success. Digitalization happens when a business starts using digital technology in order to change its business model and create new revenue streams and new value-producing opportunities. Many people think that traditional promotion will soon be replaced entirely. It is mandatory to procure user consent prior to running these cookies on your website. Despite the initial setup cost of any digitalization process, the savings that a company makes over time outweigh these costs. You will also free up more of your time to put your mental effort where it matters most. We are living in an era of Digitalization. Making mistakes is a part of what makes us human. Nowadays, most business work is done on the computer … Sadly, the process of using the digital benefits, is still in its beginning. The Yara Birkeland – the world’s first fully autonomous cargo ship- will make its first trip in 2020. This is why tech- and business analyst Jan Horsager says that transparency is the core of digital and that it gives an invaluable insight which, when used correctly, can become a significant source for innovation. Essentially, it is about customer convenience and this applies to the entire customer journey. However, there is still room for improvement – business models need to be challenges and traditional ways of doing things must be revised in order to keep up to date. Why is digitalisation so important? Gathering information from different connected digital systems is much easier than doing the same thing with traditional systems. 6 Reasons why digitalization is a must for any business. Manual workflows are full of redundant tasks that are pulling your business down. Digitalization means the use of digital technologies and of data (digitized and natively digital) in order to create revenue, improve business, replace/transform business processes (not simply digitizing them) and create an environment for digital business, whereby digital information is at the core. Why is the digitalization of your business important. Scaling a business can be difficult. This category only includes cookies that ensures basic functionalities and security features of the website. When done right, it can make a business more efficient, more sustainable and more profitable. It is the using of new ideas that lead to the making of any new products, services or processes. Working with facts instead of assumptions significantly increases the effectiveness of any business strategy. You can’t use old-fashioned corresponding methods to communicate with an autonomous vessel, which will become the norm in the near future. Pierre Nanterme, CEO of Accenture says that digital is the main reason that over half of Fortune 500 companies have disappeared off the list since year 2000. Digital business, as it relates to business technology, offers companies and individuals new ways to connect, collaborate, conduct business, and build bridges between people. When that’s the case, scaling isn’t only expensive, but also difficult, as you need to find people with the right skills. In the competitive world of port agencies, this level of efficiency can mean the difference between thriving and being out of business. Your team can easily coordinate work and see what everyone else is doing. With a solution like Abraxa, full digitalization is no longer a difficult thing to achieve. Why digitalization is so important for local businesses Digitalization has had a profound effect on the commercial landscape of the USA. The old “paper-based” methods can’t keep up with the current pace at which the world is evolving. The higher the human factor in your business processes, the more mistakes you’ll get. The Importance Of Digitalization Digitization is a process of converting information from the normal form into a digital (computerized) format. Gone are the days of direct sales. Another benefit that comes with digitizing business process is better insights. Digitalize or risk being left behind. Here at Acubiz, our experience is that customers achieve more control and insight by using digital services. This website uses cookies to improve your experience while you navigate through the website. The effect of these mistakes can vary from minor to disastrous, depending on the industry that you are in. Placing data and analytics at the center of a digital transformation strategy will allow businesses to take advantage of big data. Customer demands are increasing, customers have less time and less patience – decision making is fast and dealing with companies should be easy. Collaborating on tasks is easier with digitalized business processes. The ways to boost your brand via social media are by tweeting, blogging, posting recent wins, press releases, new products or services, job openings and key promotions and hires. The following are six reasons why digitalization is a must for any business that wants to succeed and remain competitive. Digitalization allows you to improve your workflow and make your team work together more efficiently. Digitalization happens when a business starts using digital technology in order to change its business model and create new revenue streams and new value-producing opportunities. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. The best thing about collecting data with digital business solutions is that it’s relatively easy. Hiring new staff members is a risk by itself since you cannot guarantee the performance of every single one of them. The reason why companies are moving towards digitalization is simple. It impacts the basis of business functionality and determines the way business is now managed today. The main reason to digitalise your business is because digitalisation is not a trend, but the way the whole world is heading. Digital technologies are revolutionizing many industries, including the maritime sector. By clicking “Accept”, you consent to the use of ALL the cookies. Read more about how Louis Poulsen made their processes surrounding expense management more effective here. Alongside business innovation, digitalization – the development of digital innovations – is one of the most important business trends for the future of the economy. Digital Transformation in … Why Manufacturing Digitalization Matters and How Countries Are Supporting It BY STEPHEN EZELL | APRIL 201 8 This report explains how digitalization is transforming manufacturing globally, detailing what exactly smart manufacturing (or “Industry 4.0”) is and examining the productivity impacts that digitalized manufacturing promises to deliver. When you’re developing a long-term strategy for your business, you need to be sure that you have solid facts to work with. While online retailers were initially dismissed as a niche option for computer nerds, e-commerce sales continue to rise dramatically. Enterprises today have access to … Human mistakes are inevitable. But opting out of some of these cookies may affect your browsing experience. Digitalization is the process of using digitized information to work more simply and efficiently. In order to stay relevant in an ever changing market, it is important to stay up to date with customer demands as well as market evolution. Digital transformation is an essential step for improving and creating new operating models. Digital transformation is not just about embracing new technology, it is about a change in thought and organization culture. Talking in terms of business, Digitalization is the use of digital technologies to change a business model and provide new revenue and value-producing opportunities; it … Despite the efficiency of machines and being more mistake-proof, skilled human workers are indispensable. Even the maritime sector- which has always been known for slowly adopting new technologies- has realized the importance of this change. Digital services eliminate unnecessary processing and time wasted as well as solving tasks faster and with fewer errors. You can easily know what processes need to be improved, which ones are working well, and direct your resources accordingly. To learn more about the laws for document retention in the EU, read the report “European Document Retention Guide”. Collaborating on tasks is easier with digitalized business processes. It’s like speaking a language that nobody else speaks. Digital transformation: Why it's important to your organization Digital technologies – are changing the face of business. As more companies adopt smart digital solutions, you need to do the same to be able to work with them. Digital transformation is changing the way you conduct your business. Business digitalization: How much do companies spend? Many businesses are now transitioning online in a bid to streamline the management and day to day operations. This is one of the reasons why companies should proactively leverage social media marketing tactics to drive their branding efforts. It: Saves cost. The digitalization is also connected to the automation of internal processes of the company, the goal is to become more efficient, lower expenses and increase the sales. Businesses with digitalized processes are cheaper to operate. Online businesses have provided the customers with service which has made the customers satisfied with the deals they are getting into. – It encourages innovation These cookies do not store any personal information. The Importance of Digitalization. Necessary cookies are absolutely essential for the website to function properly. And you’ll find increased importance of digitalization in business today more than ever. Digitalisation is the process of converting information into a digital form. Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. When used intelligently, the digitalization of business can lead to a significant increase in productivity and can reduce some costs. Unlike humans, machines don’t make “mistakes”. Technology has helped companies to improve in these areas throughout the years. The purpose of digitalisation is to enable automation, increase data quality, and … Companies today have optimization and digitalization of internal processes high on their list of priorities – and the same is true when companies look at how to make services aimed at customers more efficient. This is one of the many benefits that come with using modern technologies. The digital movement has great advantages and companies who understand how to exploit it to their advantage can achieve significant savings, increased productivity and better insight into their data. More and more companies are embracing digital strategies, and thereby taking advantage of opportunities for streamlining their processes. The insights that you get about your business opens the door for different types of improvements. Everything from customer-supplier management systems to blockchain-based solutions is being adopted at a wide scale. Digitalization can also do this. 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