Wikipedia defines “digitization” as the process of converting information into a digital format, but perhaps the business world has a broader definition in mind. We are hearing the term in many different business circles regarding the potential to go beyond standard operating models and change business processes by digitizing the business from end to end. But, while there is a lot of talk about the need to digitize information to drive personalization and impact business returns, is it real or just the latest buzzword?
Today’s consumers and business users live in a highly connected world and expect a seamless and personalized experience in the products and services they receive. Across the board from retail to banking to everyday interactions on their mobile devices, digital users expect real-time, personalized, interconnected and automated responses. In a 2015 Digital Business report, 60 percent of the 2000 organizations surveyed indicated they are seeing a positive ROI on their investments in personalization technologies, and 81 percent place the personalized customer experience in their top three priorities for their organization for 2016.
Our always-on economy is moving leaders to recognize the need to redesign business and operating models to meet the demands of the connected consumer. In some cases, entirely new business models have evolved around disruptive digital opportunities. There is a struggle in many organizations to strike a balance between moving towards digitization and remaining profitable, and in some business models it may prove difficult to evolve to take full advantage of digitization. Cisco’s now Chairman of the Board, John Chambers, predicts that as many as 40 percent of fortune 500 businesses will not survive the digitization transition, adding that 70% of companies will attempt to go digital, but only 30% of those would succeed.
Digitization improves all facets of business, from talent recruitment to customer acquisition. Today, digitization is no longer optional. Yet while the necessity of digitization is obvious, implementing digitization successfully can be difficult, even requiring infrastructure to store and secure the data on the back end.
Tips to moving towards digitization in your organization:
- Assess your readiness to move towards digitization. You can do it yourself (MIT offers an online self-assessment), but a better route would be to work through it with a trusted technology provider who can walk you through your assessment to determine the best path.
- Develop a roadmap. Your assessment will show you where you are today and be your guide to building a roadmap for the future.
- Pay attention to security. A data breach can cost company billions of dollars in damages, so don’t forget data security on the path towards digitization.
- Get started sooner rather than later. It may take years for the payoff to show its returns, but the company who is not is not making a move will not survive in the digital economy.
Trusted Advice Towards Digitization
Collecting vast quantities of data has made it possible for companies to get to know their customers and prospects very well, and businesses are seeing significant returns. But how is digitization different than other analytics and big data trends? Some would argue that it is not. Whether you choose to call it digitization or not, the future of the business world lies in the ability to derive insights from our data and make connections to improve our customer’s experiences and drive increased business opportunities.
At OneNeck IT Solutions, we understand that while digitization is truly changing the way we do business, and on a broader scale, changing the world. But we also believe that these digital solutions are not just about technology, but about the business outcomes that are critical to business owners and decision makers. While getting there may seem overwhelming, digitization will be the foundation that leads to true business transformation.