What is Digitalization and Why is it Essential for Business Growth?

The success of a business today is dependent on digitalization. It happens when a company uses digital technologies such as automation solutions to transform its business model and create new value-producing opportunities.

This article will explain what digitalization is. We'll also discuss how digitalization can be applied to your business.

What's digitalization?

Gartner defines digitalization as using digital technology to transform a business model, generate new revenue, and create value. Many companies have experienced success through digitalization. Businesses can fully utilize digital technology to automate their marketing and process orders. Digitalization can help increase efficiency in business operations and make automation possible.


The entire business landscape has been rearranged by digital technologies, which have transformed it from analog to digital. Digital technologies ensure that data is not stored on storage devices anymore but only in the cloud. Many companies have gained a competitive edge by using cloud computing. They have a tremendous impact on team collaboration and overall performance.

Cloud storage prevents data loss and automates data backups.

We'll be going through some examples to help you understand the topic of digitalization in business. 

Customer Behavior within a Digitalized Environment

Some research found that 81% of consumers use the internet to research before going to the store. We all know that there is a growing trend to buy online. Customers are fully adopting digital technology and now use the web and mobile apps to search for any information they need whenever they want.

Customers are now comparing your products and services with their direct competitors. They also compare them to other industry offerings offering better products or services.

Customers are constantly urging companies to improve their customer experience, considering what they have experienced with other companies worldwide. Customers are helping companies reach new heights.

The effects of digitalization on knowledge sources

The digitalization revolution has given us access to a wealth of knowledge and expertise. Every company should know the wealth of knowledge available beyond traditional boundaries. Businesses should learn to create and sustain surplus economic value by bringing together diverse groups.

Understanding how to build relationships with other communities and capture value by owning and managing processes is important. Digitalization allows a wide range of people to connect, connecting IT and non-departments, affecting how businesses create value.

Digitalization brings lower transaction costs

Companies are now running low-cost experiments which were impossible in the past. Setting goals and testing them in a low-risk environment is easier. This gives companies greater insight into the future direction and whether they will be cost-effective.

The advantages of digitalization for business

As we've already mentioned, digitalisation has brought about many new innovations in the business landscape.

Let's now look at some unique benefits that can be used to benefit your company. You'll also learn how you can benefit from these benefits, even if it is not yet too late:

  • Efficiency in all operations increased
  • There are fewer human errors
  • Cloud storage for data safety
  • Lower operational costs
  • Enables data analysis

More digital presence

This benefit is the most prominent. Visibility is multiplied if a company is visible through social media, online shops, and business directories.

Many companies have only a digital presence. This means that there is almost no offline presence.

New communication channels

Implementing digital technologies increases the company's digital presence and allows for creating new communication channels. These channels are not new, but they are well-established. You can even implement an Omnichannel strategy by harnessing the power and potential of digital communication channels!

Digitalization encourages innovation

The impact of digitalization on business innovation is huge. Technology advances make it easier to innovate and act. It's difficult to stop once you begin. Continuous innovation will make you more aware of and receptive to new trends and opportunities.

Digitalizing your business is not an option. It's necessary. Your business will fall behind if it doesn't adapt and embrace digital technologies.

It is essential to embrace new technologies and learn from your customers and rivals. Digital transformation is the next step after the successful implementation of digital technology.

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