What is Digitalization?
In recent years, many digital technologies have been dramatically developed (like mobile Internet, artificial intelligence, Internet of Things etc.) and have moved forward to our everyday life. Indeed, online and offline disruptive technologies change our entire life.
Among these technologies, digitalization plays a main role. Digitalization is not only optimize automation, but also it provides greater flexibility and customization in products and services.
According to Gartner („Digitalization – Gartner IT Glossary“, 2019), digitalization is the use of digital technologies to change the business model and provide new opportunities for revenue and value and it’s the process of moving to a digital business. Indeed and according to Gartner, what is important is focusing on changing business models rather than other aspects.
Gartner’s definition, however, raises a main question that what is digital business exactly? Let’s reply that digital business is offering new business opportunities by blurring the digital and physical worlds.
Digitalization means the facilitation, improvement or transformation of business processes through the use of digital techniques and digital information.
Digitalization transforms the universe of labor as digital skills development has now become a prerequisite for personal, business and national achievement. It has transformed the economy and society completely.
What about Digital Transformation?
The digital transformation is quite different from digitalization.
A company could carry out a number of digitalization initiatives. In contrast, digital transformation cannot be implemented as initiatives by businesses.
Instead, this wider word relates to the strategic transition of customer-driven businesses which involves cross-sectorial change in organizations and digital technology.
Digital transformation initiatives typically involve several digital project but managers who think that digital transformation is not the only thing that makes a major strategic error are digital transformation.
The processes of ongoing transition to digital processes through advanced IT infrastructure, digital apps, and network-oriented systems and information are described in digital transformation. Digital platforms are used to share information, communications, procedures and services. This kind of business model is mapped digitally and new digital products are created.
In fact, digital transformation needs that:
- The organization handles change more effectively,
- Fundamentally changing its core competence,
- Following end-to-end customer-driven approach.
Appropriate prerequisites must be developed to make digitalization successful including:
- Developing a digital strategy
- Building a digital organization
- Develop digital business models
- Active techniques to create and develop products and services
- Building a flexible IT infrastructure
These factors are required for effective digitalization.
A digital strategy is being developed as a starting point for digitization. This involves transforming the digital company and developing new sections of digital company. The leaders of digitalization are mostly the IT departments, but the digital strategy also needs to be supported by specialized departments and management. After all, digitalization affects all aspects of the business.
Digitalization’ Action Plan
Companies must digitize their inner processes and procedures, while developing new facilities and digital business models. Due to the increasing acceptance of digital services and applications, the challenge for businesses in digitalization is to define new client requirements.
In order to succeed in digital change, digitalization necessitates that businesses concentrate on developing digital innovations. Typical action areas are:
- To create an innovation culture that encourages digital processes and enables digital services.
- Developing policies of digital innovation.
- Training staff to prepare for change and allow them to take part in digital change for the problems of the digital era.
- Marketing and sales operations of a company should be aligned with digitalization. Companies must address that how do they want their clients to be reached tomorrow? What functions like the marketing of content and sales automation could accompany their business? How do companies address their customers‘ increasingly customization requests?
New innovations provide countless methods to reach your market while technologically knowledgeable clients expect you more than past. Companies in all sectors have to satisfy the demand for quicker, more effective and innovative service to stay competitive. But the large issue is, how are you transforming your digital systems successfully?
We know how to help you on defining your digitalization objectives correctly. We accompany you in all steps of this journey and execute the best and right plan that could meet your business targets. Our advisors are specialists at guiding businesses through each phase of their digital transition: from the definition of a digital vision and creating mission statements to implement investment schedules, establishing innovation objectives and redesigning organizational structures. We assist you in putting your clients first.
Our strategy in digitalization is helping you maximize your efficiency in the new digital globe.