La digitalization of companies it can mean different things depending on the industry you're in. It may involve, for example, the digitization of certain administrative tasks, the use of digital marketing or the use of digitalization in the development of new products and services.
Through the digitalization of companies, it is possible to structure tasks and processes to be more efficient. While it is true that digitalization provides many opportunities for your business, the path to digitalization and digital transformation is a challenge.
In this article, we will explain the differences, stages and what digitalization and digital transformation mean for your business.
What is digitalization?
The digitalization of companies consists of introducing new digital technologies to improve processes and functions.
Companies can use digital tools to simplify their tasks, generate revenue, create new business models, provide better customer experiences, and much more.
It is done not only to remain competitive in the moment in which we live now, but also to prepare for a flexible and technology-driven future.
What is digital transformation?
Digital transformation is the use of digital technology to change internal processes, culture and user experience, as well as the introduction of new business models.
Digital transformation adapts companies to the market and business requirements of the digital age. You could say that it is the result of digitalization.
Key Differences Between Digitalization and Digital Transformation
Although the two concepts are often used synonymously, they refer to different processes.
While digital transformation is related to a more general process change and that has A plan within a company, digitalization generally refers to something more unique.
In the case of digital transformation, it is possible to streamline and modernize productivity, communication and production processes. Digitalization, on the other hand, applies to something specific, to facilitate something specific within the company's work. Whether in a more general or specific aspect, the two processes came to help make companies more efficient.
We can say that digitalization is the conversion of information to a non-physical format, while digital transformation involves the implementation of processes that update the company's tools and objectives to an already digitized world.
Why is the process of digitalization and digital transformation important?
The arguments for embarking on digital transformation differ from company to company. However, the common denominator is the fact that digital transformation is necessary to ensure the continued survival of all companies.
Change is the only thing that is constant in the business world. Every business must evolve to survive. Development is transformed into more efficient processes and new ways of serving customers.
Digital transformation is a long-term investment, through which companies optimize their processes, become more efficient and generate greater benefits.
Stages of Business Transformation
To be successful in the transformation of your company, you must adjust to the stages of digitalization and digital transformation in order to have an advantage over your competitors.
The 5 stages of digitalization in a company
To carry out the digitalization process in your company, you must follow these steps to complete it successfully:
1. Identifying needs
Before starting to digitize your company, you should know exactly what you need to be able to specify where you are going to concentrate your efforts. Once you identify what your company needs to adapt to the digitalization process, it's time to start working.
2. Training and adaptation to digital tools
There are an infinite number of digital tools, and it's easy to spend money on several different ones and not get the expected result. At this stage, it seeks to divide the business into central areas and then investigates what are the right tools to optimize each area.
3. Organizational transformation
At this stage, it's important to review your current work processes and update them as needed to get your company off to a good start with organizational transformation.
4. Execution of transformative actions
This is where you begin to improve and simplify your processes, after moving to a new technology.
5. Improvement and upgrade process
The modern world is moving fast and you are now part of the new digital ecosystem, so it's essential to keep up to date. Make sure to keep up to date with the digital routines applied and update them whenever necessary.
The 5 stages of digital transformation in a company
Digital transformation is a process that is made easier if you follow these steps for its implementation:
1. Company Commitment
Digital transformation isn't a one-time process. It's something that needs to be integrated into your company culture. Technology changes rapidly and keeping pace requires an organization to be willing to adapt, experiment and continuously improve.
2. Digital skills training
Adequate employee training is essential for successful digital transformation. More than new knowledge, it is a new vision that must be adopted.
3. Definition of the strategic transformation plan
A digital transformation process has no meaning or significance if it is not integrated with the company's global strategy. Adequately defining the transformation plan has a direct impact on its success.
4. Define the areas that will be transformed
Once the elements and processes to be transformed have been identified, specific needs must be prioritized and identified. This will guide the choice of solutions to implement.
5. Execution and analysis of digitalization
The transformation process doesn't stop at deploying solutions. It is important to measure and compare with previously set objectives to apply the necessary adjustments.
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Conclusions
The potential benefits of digitalizing companies are obvious. Better workflows, greater efficiency, better products and even completely new services are examples of the benefits that can be derived from a digitization process.
Based on them, you can take advantage of even more benefits, such as greater competitiveness and reduced costs.
Keep in mind that when your business goes digital, it's not just technology changes—every aspect of your business is affected. It is first and foremost a cultural and organizational transformation, where digital technology is the catalyst. And today it's one of the biggest leadership challenges in the foreseeable future.
