What is digitalization and how to introduce it into your company
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A bit of history
“Digitalization” is a term that has been used for many years to describe the process of transforming traditional activities and processes into digital formats. It began in the 1970s, when the advent of the first computers enabled the automation of certain business functions. However, it wasn’t until the emergence of the Internet in the 1990s that digitalization truly gained momentum, ushering in a new era of innovation.
Over time, various key players have shaped the digital transformation of business activities. These include major technology companies such as Microsoft, Apple, and Google, which developed technologies and software to support digitalization. Simultaneously, numerous startups have created innovative solutions to help companies adopt and accelerate this transformation.
In recent years, digitization has become increasingly important for companies of all sizes and industries. Process automation , data collection and analysis , and device connectivity are just some areas where digital technologies have boosted efficiency and productivity. Businesses that successfully embraced digitalization have often gained a significant competitive edge.
A real challenge
What is digitization and why is it important
- The Process
Digitalization is a process that can have far-reaching positive effects on both businesses and society. It enables companies to become more sustainable, resilient, and competitive—while also improving quality of life and promoting social inclusion and equality. - Change
Digitalization represents a radical shift. It encourages the adoption of environmentally friendly technologies, helping reduce production costs and environmental impact. It also improves a company’s resilience, enabling faster responses to market changes and emergencies. - The Benefits for Companies
Digitalization empowers companies to better serve their customers—responding quickly and effectively to their needs. But the benefits extend beyond business performance. It can also improve quality of life, particularly by enhancing access to services for people in remote or underserved areas. This fosters greater social inclusion and equality. - New Markets
Moreover, digitalization can make businesses more competitive by opening access to new markets and enabling the creation of innovative products and services. Companies that embrace digital transformation can boost productivity and reduce costs—sharpening their edge in a global marketplace.
How to introduce digitization into your company
To begin the digital transformation of your business, you must first understand which processes can be automated or enhanced through digital technologies. Then, select the most appropriate tools and develop a detailed implementation plan. Crucially, involve your employees in the process and provide adequate training and support.
1. Identify Processes to Be Digitized
Start by analyzing your company’s core processes. Look for those that are time-consuming, repetitive, or prone to error—these are often ideal candidates for automation. Conduct a cost-benefit analysis for each, and prioritize the ones that will deliver the greatest impact.
2. Choose the Right Technologies
After identifying key processes, research and select digital tools that best fit your business needs. Focus on technologies that are user-friendly, scalable, and compatible with your existing systems. Ensure you evaluate long-term support and integration capabilities as well.
3. Create an Implementation Plan
Develop a step-by-step roadmap for the rollout of digital solutions. Outline the phases of implementation, assign responsibilities, and set realistic timelines. Involve all relevant employees and clearly communicate expectations to ensure smooth adoption and accountability.
Sources
In support of what is stated in this article, here are some verified and reliable sources that can provide you with additional information on digitization and its benefits for businesses:
- Forbes.com – “The Digital Transformation Journey: What Every CEO Needs to Know”
- McKinsey & Company – “Digital transformation: Improving the odds of success”
- Harvard Business Review – “Digital Transformation Is Not About Technology”
Conclusion
Digitalization offers companies the opportunity to become more competitive, efficient, and customer-focused. By selecting the right technologies and implementing them with care and foresight, businesses can unlock the full benefits of digital transformation and position themselves as industry leaders.
Keep in mind: digitalization is not just about technology—it requires a broader cultural and organizational shift. Engage your employees in the process and ensure they are ready to embrace change. With the right planning and mindset, digitalization can lead your company toward long-term success.
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