Digitalization and the Digital Transformation: A Pipeline to Innovation

The current digital transformation is fuelling innovation across the globe. Forbes reports a six-year acceleration in digital transformation efforts across the board since the onset of Covid-19. Companies that are not engaging in any form of digital transformation will find themselves left behind. The good news is that there are increasingly available opportunities for companies to propel themselves forward and remain competitive through digitization and the adoption of technological infrastructures. 

Using digital technologies to bypass the limitations of the physical world provides a surplus of benefits to companies. We've seen a clear jump in digitization during the pandemic as companies attempt to remain active and competitive in the industry. The pandemic has especially fast-tracked digital technologies, new and existing players are revolutionizing how products and services are created and distributed.

So why are we seeing such a jump in digital transformation? What does digitalization provide to companies? 

A Competitive edge -

Digitization of a company's processes (think 'paperless office') allows companies to keep up with today's consumer demands and not fall behind advancements made by other industry competitors. More and more, we are seeing demand from customers for digitized customer experiences. Companies that embrace technology and use it to improve internal and external systems will see returns through customer satisfaction. 

Improved Efficiency -

Even if you feel your company is already efficient, there is always room for growth. Dealing with physical documents and data comes with limitations and can make processes prone to error. This means you only produce as fast and faultless as your employee is. Digitizing work processes increases agility by cutting down on the time it takes to complete tasks and streamlines information travelling through organizations. As a result, the flow between work and information is greatly improved. There's also evidence to suggest digitalization can increase employee motivation by up to 40%. Ask yourself if you have any work processes that could be improved through automation.

Learning through data -

By implementing software solutions and products, companies can accumulate data on all parts of their business. By digitizing data collection, companies can collect data at a rate far above any human capabilities and in a highly optimized way. As a result, relevant information on products, customers and the market is available in a single space. Using optimized data allows companies to be more responsive to market trends and demands. 

And perhaps the most important benefit of them all. 

Facilitation of innovation -

Digitizing workplaces frees time for managers and those alike to focus on growth and innovation. Managers can spend their human capital on development and innovation rather than monitoring employees, fixing mistakes, and attempting to rationalize inefficiencies. Digitalization of production processes breaks down silos in organizations, streamlines processes, decreases loss of information, and lessens double-handling of data. All of which leads to better utilization of resources. Thanks to technology, you can leave all the heavy lifting to machines and software. 

Digitization presents industries with the possibility for more inclusive and sustainable growth through aiding innovation and development of new processes. Digital transformations contribute to changes in business models, as new technologies provide new ways of doing business that were previously not feasible to most. We see proof to this matter through the increased opportunities for access to new markets. The Fintech industry is a perfect example of this, an entirely new industry built from a relationship between financial institutions and technological infrastructures. The COVID-world has fanned the flames further of digital innovation amongst financial institutions, and during 2021 we've seen a climb in investors and investment firms going all-in on Digital-first banking, which can be read more about here. Technology brings scalability and can transform businesses regardless of industry size, from small manufacturers to large financial institutions. 

Adoption of digital products into business processes is at the heart of digital transformation. We see indications that software products are bringing companies "next-level value." Digital transformation has become imperative to stay relevant and ensure business continuity. What is your company going to do to stay ahead? How do you plan to give your company next-level value? What could you innovate if given the opportunity?

If you have any questions about digitization and digital transformation, please feel free to reach out to us at hello@askintegral.com