Digitalization can have many benefits for businesses, such as increased efficiency, better data analytics, enhanced service and engagement with customers and the capability to automate processes. Digitalization of business processes also enables companies to test new ideas and strategies in an environment that is low-cost.
In the past business records were typed or written on paper into ledgers. To share the information with colleagues, you had to physically send or mail the document. When computers became commonplace and widespread, many organizations began to convert their ink-on-paper records to digital computer files. This process, commonly referred to as digitization is the foundation for many modern tools and business practices.
Increase Efficiency
Digitalization can help people work more efficiently and quickly, allowing them to complete projects and meet deadlines in a timely manner. Digitalization can also assist businesses save money by automatizing certain processes and allows employees to concentrate on more important tasks.
Improve Customer Service and Engagement
Digitalization has enabled companies to collect data on their customers’ interactions with their products and services. This data can be used to enhance the customer experience and boost loyalty and revenue. In addition, digitalization has enabled companies to offer customized products and experiences to each customer.
It is important to understand the difference between digitization and digitalization, in that the former refers changing data into digital format while the latter is the use of this information to drive transformation in models and processes for business.
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