Introduction
The world is constantly changing and evolving. What not too long ago seemed to be something from science fiction has now become commonplace, and the pace of change and advancement is only increasing.
Organizations that choose to embrace this change are the ones that will thrive in the years to come. Technologies such as the internet of things (IoT), artificial intelligence (AI), and cloud computing are radically changing how businesses operate. If you want your business to remain competitive, you need to embrace these technologies.
One of the most critical changes that businesses need to make is their approach to digitalization. We're already experiencing the effects of digitalization, which will only increase in the future.
1. What is Digitalization?
Digitalization is the process of integrating new digital technologies into all aspects of your business. This can include automating processes, using Big Data and analytics to make better decisions, and using mobile devices and cloud-based applications.
Why is Digitalization Important? Digital technologies are changing the way we live, and businesses need to adapt in order to stay competitive. By embracing digitalization, companies can realize new revenue opportunities, improve process efficiency, and better understand their customers.
2. What are the benefits of Digitalization?
For businesses looking to compete in today's world, embracing digital transformation is an absolute must. There are many benefits to be gained from digitalizing your business. Here are some of the most important:
3. Optimization of the working process
By automating routine tasks and processes, businesses can significantly reduce the amount of time needed to complete tasks. This will free up your employees to focus on more important tasks and increase overall productivity.
Automation of previously error-prone manual tasks will also reduce the likelihood of human error. Some popular examples being pursued by many organizations are applications of IoT.
4. How IoT can help optimize routine tasks
The Internet of Things (IoT) is changing how businesses access information and make decisions. IoT is the network of physical objects that contain embedded electronics, software, sensors, and connectivity that enable these objects to collect and exchange data.
Collecting and using this data can also help support decision-making, which allows employees to act quickly with accurate information at their fingertips. Many experts believe that IoT will play an important role in digital business transformation.
Some examples of IoT solutions are:
- Using IoT sensors to analyze machines and their overall condition to better protect against breakdown.
- Using sensors to detect customer behavior, such as how long a person lingers in front of a product or which items are picked up and put back on the shelf.
- Tracking goods movement and temperature to optimize delivery routes and make sure products arrive at their destination in perfect condition.
By automating tasks like monitoring machines, checking the quality of service, collecting feedback from users, and more, businesses can reduce costs incurred and still drive improvements in customer experience.
4.1 Improving customer experience
Digital business transformation improves the customer journey by making interactions with a business faster, more convenient, and personalized. Customers today expect a consistent, high-quality experience across all channels. Digitalization allows companies to provide that experience by integrating customer data and personalizing interactions.
In addition, businesses can gain significant insights into consumer behavior, preferences, interests, and needs by analyzing targeted analytics. This targeted data allows businesses to create products and experiences tailored to their customer's needs.
Today, customers can research a product or service before ever contacting the company. By the time they're ready to speak with a company representative, they have already done much of their own research and know what they want from you.
Digitalization is a two-way street, though, as it also provides companies with greater insight into what clients need. A great example is UBreez that helps to resolve issues with indoor air quality. There have been many studies about the negative effects of poor air on decision-making and overall productivity. By creating an improved IoT air-quality monitoring system, companies can better track air quality and make adjustments as needed.
This solution allows for better monitoring of air quality through IoT technology, which ultimately results in increased productivity levels. Additionally, it can provide considerable cost savings to businesses and organizations. Estimates suggest that improving indoor air quality could save businesses up to $150 billion per year globally.
Digital transformation is essential for companies looking to improve their efficiency and stay ahead of the competition. By embracing digitalization, your business can unlock a wealth of opportunities and benefit from improvements in productivity, efficiency, and customer satisfaction.
4.2 Real-Time Data Processing
Real-time data processing is essential for understanding the full value of IoT data. By processing data as it is generated, businesses can quickly identify patterns and trends that would otherwise be missed. Timely analysis of IoT data can help improve decision-making and achieve better results.
While businesses in every industry can benefit from IoT, these technologies deliver unique value for organizations that depend on accurate data collection and analysis. For example, with IoT sensors in place, medical professionals can gain real-time insights into patient vitals and remotely monitor seniors who live alone.
When harnessed effectively, the vast quantities of data generated by connected devices have tremendous potential for innovation. Organizations can unlock new insights that may have previously been impossible without more comprehensive datasets.
4.3 Reduce business costs
Digital transformation can give businesses a significant competitive edge over their competitors. By embracing new technologies and improving business processes, you can stay ahead of the curve and maintain your market share.
Businesses that have completed digital transformations have reported significant cost savings. McKinsey suggests that costs can be cut by up to 36% and many businesses have noted that digital processes tend to be more efficient than traditional ones, resulting in further cost savings. Automated processes can reduce the need for manual input, which will allow them to free up resources and focus on your core business objectives.
4.4 Reduce costs with The Internet of Things (IoT)
IoT is a term used to describe the ever-growing network of physical objects that are embedded with electronics, software, sensors, and network connectivity. We can use IoT-connected devices and systems to better track and manage business processes. This can result in increased efficiency and better decision-making.
For example, a company could use IoT-connected sensors to track the temperature of its production line. If the temperature exceeds a certain threshold, the system could automatically trigger a response, such as opening a window or shutting down the production line.
5. Examples of success stories of digitalization
In the early days of the digital age, when most businesses were still finding their feet, there were some high-profile failures. However, as time has passed and digital processes have become more refined and integrated into our lives, an increasing number of businesses have found success with digital transformation projects.
Some notable examples include Walmart, which increased its annual revenue to $141 billion through digitization; and Airbnb, which grew from a small startup to a company worth $100 billion in a little over ten years.
Another example that bears exploration is the Diia program, which the Ukrainian government launched. In 2019, Ukraine developed a new app called Diia, where they’ve taken information that's usually only available with paper copies and digitized them to be accessible through an app.
As a result, today a Ukrainian citizen has access to all their government documents and can receive services through one app on their smartphone. The Diia app allows citizens to receive information on over 50 government services the state offers. This includes registering a birth, getting passports for children, confirming their place of residence, having a digital driver's license, and more.
The first and most apparent advantage of this platform is convenience. Citizens may now have many documents accessible at all times, knowing they won't be lost or damaged. Furthermore, in any situation where it's required, they may simply open an app on their phones to exhibit or verify the document they need.
But there are even more advantages than this. Diia's mission is to help citizens access services more quickly and efficiently. Cutting back on governmental administration work aids in the fight against corruption and helps drive government savings. Fewer people are required to work in the public sector, resulting in fewer interactions. This has helped the government save hundreds of millions of dollars because of the program, improving government service speed, efficiency, and transparency.
6. What the digitalization process involves
The challenges of implementing digitalization into your business are clear - it requires time, money, patience, and an understanding of the right steps to take in order to be successful. However, these are all worthwhile investments because, once made, digitalization will give you access to new markets along with the chance to improve efficiencies across every aspect of your business operations.
6.1 You need to define a clear goal
Before you start on your digital transformation, it's important to ask yourself what you expect the end result to be. What value will digitalization bring to your business?
Are you looking at digitalization as a means of improving efficiencies in your business operations, or is it a cost and revenue-generating exercise? Perhaps you're looking at the digital business transformation project as a means of improving customer experience? It's important to understand your goals before starting the project.
Once you have your goals set, you need to create a plan of how best to achieve them. You may decide that one of the first steps you want to take is building an MVP (minimum viable product) which will allow your customers and potential clients to test out some of your ideas without it being too time-consuming or expensive for you at this stage. If this is the case, you're probably looking for a software app and will need to engage a suitable software vendor.
6.2 Finding the right vendor is critical
The right vendor will help you through the entire process of digital transformation. They're experienced in working with different companies across many industries so they can provide valuable insight into what works well within other markets and whether products and services would benefit from changes and tweaks to suit end customers' needs.
- R&D and Specifications
Finding the right vendor is critical; however, many companies don't map out their full requirements and expectations before starting down this road. This often means that costs aren't fully evaluated or projects aren't fully scoped out. This can lead to cost overruns as well as projects missing their deliverable deadlines.
- Design and Prototyping
Once you have your goals in mind and a vendor selected, they can work with you in many ways. At the start of the project, they can help you sketch out a draft based on your overall needs. They'll then help guide your decisions about architecture, wireframes, and the interactive prototype. This can guarantee that your users have a comfortable experience when using your digital products.
The vendor should make sure the software is user-friendly for your business staff and customers. This often involves looking at things from a customer's point of view, so the design of the user interface (UI) and user experience (UX) can be evaluated.
Too often, businesses focus on the technology itself rather than what value it'll bring to their company. The design of your UI and UX is key to a successful transformation - if customers don't enjoy using your product or service, they won't continue to use it.
- Hardware/Software development
Once the design of UI/UX is finalized, the next step is development. This is where the rubber hits the road, and the technology is put into action. Making sure your hardware and software are aligned with your goals and specifications is critical for a smooth transition.
New software can also be integrated with existing systems to minimize disruption. There's typically quite a bit of work involved in this area but it can lead to cost savings elsewhere because there may be no need for expensive hardware upgrades or physical updates that typically come with new technologies and products.
When looking for a new digitalization partner, you need to make sure that they understand the benefits of this approach and the know-how to conduct it properly. This will help with product updates and insight into new features.
The right vendor will help you through the entire digitalization process. You'll work together on gathering customer feedback and evaluating analytics, as well as designing an overall strategy that fits your needs.
6.3 Receive end customer feedback on your product
This is where you’ll determine the return on investment (ROI) for all of this work. Keeping an eye on analytics can help with this; however, it shouldn't be the only performance indicator that you rely upon to gauge success.
Simple ideas like conducting usability tests with customers can yield some interesting feedback that you can use for future iterations of your product.
Conclusion
Today, the speed of change in technology is relentless. If you aren't already taking advantage of digital technologies, now is the time! Your competitors are likely well ahead of you, so you need to act fast.
The benefits of digital transformation are clear – increased efficiency, improved customer service, and increased revenue. By understanding the needs of your business and implementing the correct digital processes, you can make sure that your business reaps the rewards of this new, digitalized world.
Related: Starting an IoT project: a Guide for Businesses
