17. March 2022
The digital change progresses, but not all businesses are taking responsibility for setting the trend. Changing to digital processes isn’t something you can force or push forward within a short period of time. Nevertheless, many businesses, especially small ones, miss opportunities because they ignore digitalization.
Mobility and social media are two main advantages of the digital progress | © NordWood Themes
The advantages of digitizing a business are well known. Thanks to technological progress, businesses save money and generate it in the long term as well as they offer customers more flexible solutions.
Besides the known advantages there are other strengths of business digitalization which aren’t obvious at first glance. But it are exactly these more unknown advantages that make companies succeed in the long term. Following, FRAMR. presents seven overlooked advantages of business digitalization.
Although digitalization progresses in the business world, the processes are still expandable. A published study from february 14th 2022 reveals that 35 percent of German companies consider themselves as role models in digitalization and another 44 percent claim that they could generate more money thanks to digitalization.*
The progress is noticeable but yet expandable. Other countries, especially the USA, have proceeded much further and already use digital technologies which are barely used in Austria and Germany. A good example are AI products.
The actual challenge lies within the missing doer-mentality. Businesses already have to deal with a lot of bureaucracy but the processes of digitizing a company make things even more complicated. The first step requires consultation of a professional to actually figure out how to execute digital strategies (which often come with a lot of bureaucracy). But that’s no reason to stop the change or to overthink it - businesses are adaptable and in the coming years more changes in digitalization are to expect which makes it easier to execute digital strategies.
Many companies face the situation that they have to replace analogical processes completely whereas recently founded businesses have successfully implied digital strategies ever since they have started.
That reveals the actual challenge: Companies need to switch from analogical processes to digital ones in order to make an impact on the market. That might require support of the state because laws often prevent a flawless and easy change.
Which advantages do digitized businesses have besides more flexibility, expandation of mobility and a more efficient use of resources? Many businesses ask questions like this and we anticipate it right away: Setting long term goals is the most important factor.
The advantages of digitalization in businesses are the following:
Growing competition requires businesses to re-think their strategies regularly. Already during the founding process companies have to ask themselves what makes them different to their competitors. But not only does digital progress provide new and more opportunities for businesses regarding product and service diversity, they are also encouraged to be innovative and to find ways to stand out.
There is no sit still for businesses and that creates new, innovative ways to succeed on the market. Consumers also take advantage of that because they are provided with many different products and services.
Centralization of working processes provides consumers with a better overall offer of goods and services. Good example is digital signage software - because of the centralized, cloud based approach, maintenance is not provided individually for every customer because updates are completed collectively. That saves resources and improves customer satisfaction.
Writing a job description, waiting for applications and going through a long selection process. This is how businesses looked for new employees for a long time and in 2022 many companies still go this way. However, digitalization provides new and easier ways to find employees. New start-ups especially take advantage of that because freelancer job communities make order placements easy and businesses don’t have to hire staff for a longer time. Thanks to remote work (home office) additional offices for freelancers and employees aren’t necessary and start ups save a lot of money.
Home Office: Remote work is one of the biggest advantages of digitalization | © Austin Poon
One of the main goals of digitalization is to create new jobs as well as to replace and expand analogical working processes with modern technique. Businesses also want to reach the goal to secure existing jobs and make work easier for employees. Thanks to digitalization, new jobs are created, especially in the fields of IT and digital marketing. Existing job fields become more important (web designers for example) and more analogical fields are expanded by digital processes (design and content creation for example).
This is one of the biggest advantages of digital marketing. Key performance indicators (KPIs) such as reach and click through rate are easily accessible and give a better overview of how successful the chosen ways of advertising are.
Every process requires a testing phase and it’s not sure whether something works or not. But thanks to measurement of digital processes, businesses are given more possibilities to optimize their working processes and the numbers reveal if something works or not.
Again, digital marketing is a good example here. Facebook ads and Google ads don’t necessarily work right from the beginning but data insights help your business to figure out which methods will work in the future. With that, businesses can grow exponentially because knowing the best practices for paid ads helps you to improve your social media appearance at the same time.
Regarding savings of money, most businesses only think in the short term. An analogical process is replaced or expanded by the usage of modern technology and that saves money. but even more interesting is the potential to save a lot of money in the long term.
The actual advantage of digitizing businesses can be shown on the chances of long term optimization of business processes. Digital change is still partly at the beginning and especially the start requires a longer testing phase to figure out the next steps as well as the best ways to reach business goals.
Digitalization provides many advantages - because of that, many people ask themselves if there might be some disadvantages or possible risks. Many criticize that their jobs are at risk.
But it’s wrong to say that digitalization will lead you to lose your job because many jobs only require further education to get used to digital working processes. Good examples are architects - until only ten up to 20 years ago, buildings were drawn in the first step. Now, buildings are created with computers and modern programs. Even architects who received their education in the 90s know how to use the modern ways to work because they were taught that in courses.
A possible risk lies within the investments of businesses. Especially in marketing, many tests are required to figure out if a specific way of advertising works and that means companies have to spend a lot of money at first. However, it would be wrong to claim that one wrong investment makes you bankrupt, but a small risk remains.
Every business should consider digitalization of working processes in 2022. The advantages reach from more flexibility to expanding the market. Many see digitalization as a threat to their jobs but especially the innovative spirit of digitalization will create many new ways to combine modern technology with jobs that already exist.
Below we will answer the most frequently asked questions about digitalization of businesses.
Digitalization means that analogical processes are replaced or expanded by technological processes step by step.
The goal of businesses is to create more independent as well as more flexible working processes. That results in long term cost savings, more efficient usage of resources and progress in the development of products and services.
The goal of digital marketing is to digitize the marketing and sales processes of businesses (with social media for example). Digitalization is a general term whereas digital marketing is part of the whole process.
Digitalization saves money and processes become more sustainable. Other advantages are obtaining new employees, easier measurement of the usage of resources and expanding sales ways.
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