{"id":3496,"date":"2022-01-10T14:23:16","date_gmt":"2022-01-10T14:23:16","guid":{"rendered":"https:\/\/news.sap.com\/india\/?p=3496"},"modified":"2023-08-14T17:34:21","modified_gmt":"2023-08-14T17:34:21","slug":"how-digitalization-can-benefit-you","status":"publish","type":"post","link":"https:\/\/news.sap.com\/india\/2022\/01\/how-digitalization-can-benefit-you\/","title":{"rendered":"Here\u2019s How Digitalization Can Benefit Your Firm"},"content":{"rendered":"

As per the\u00a0OECD<\/a>, the digital revolution has a huge influence on business, bringing both opportunities and challenges. E-commerce, big data, machine learning, Artificial Intelligence (AI), and the Internet of Things (IoT) are all interconnected phenomena that will significantly boost the economy’s productivity. The consequences of these radical developments are moving beyond the realm of business now. However, millions of lives will be disrupted if conventional economic and societal paradigms, as well as the established marketplaces, are disrupted. Thus, it is vital to prepare ahead to ensure that appropriate policies and institutions are in place to make the most of these developments.<\/span><\/p>\n

Today\u2019s organizations generate a lot of data, and the\u00a0digital asset management<\/strong>\u00a0of the collected data is necessary to take advantage of the same.\u00a0<\/span>The digital era has given birth to ideas and concepts that were before unimaginable. Digitization, digitalization, and digital transformation are three of them. It’s difficult to tell the difference between them because they’re often used interchangeably.\u00a0However, knowing the difference is critical for the organization’s business development team as they aim to welcome them on their technological travels.

<\/span>Difference between Digitization, Digitalization, and Digital Transformation<\/span><\/strong><\/p>\n

The terms digitization, digitalization, and digital\u00a0transformation\u00a0all appear to be the same and are often a source of confusion, but these are certainly very different.<\/span><\/p>\n

In simple terms,\u00a0Digitization<\/em><\/strong>\u00a0focuses more on internal optimization of processes like automating tasks and minimizing paperwork.\u00a0Digitalization<\/em><\/strong>\u00a0goes far beyond that. It refers to\u00a0digital asset management<\/strong>\u00a0that helps your firm achieve higher growth, among other benefits.<\/span><\/p>\n

Digitization is crucial for digitalization. It is used to convert information from analog to digital format. At the same time, digitalization uses digital technologies and data to create new opportunities that change the way customers and businesses interact with each other.<\/span><\/p>\n

Digital transformation<\/span><\/em><\/strong><\/a>\u00a0is the actual corporate transformation that is made possible by\u00a0digitalization<\/em><\/strong>. The term \u2018digital\u2019 in the name is a bit misleading; the essence of digital transformation is a change in business processes or business culture, implemented via technology.

<\/span>Impact of digitalization on enterprises<\/span><\/strong><\/p>\n

To be competitive in this new commercial and economic situation, the tactics and technology adopted by organizations need to change. Most executives see the strategic value of technology as an important part of doing business, not just as a source of cost savings.\u00a0<\/span><\/p>\n

In 2004,\u00a0Target<\/strong>\u00a0outsourced its\u00a0web presence<\/a>, which is considered supplementary, to Amazon. Target redesigned its location and devised a new and updated design that blurred the line between e-commerce and physical stores. Tremendous changes were made in more than 400 stores, which were rebuilt and outfitted using modern technology. Innovation in services also took place in online ordering, in-store pickup, and curbside food pickup.<\/span><\/p>\n

These investments provided a huge advantage to Target during the pandemic. The sales through curbside pickup service increased by\u00a0500% YOY in Q4 of 2020<\/a>. The market share of the company increased by $9 Billion, adding $15 Billion to its revenue.<\/span><\/p>\n

Another example is\u00a0Hasbro,\u00a0<\/strong>the toy and gaming firm that invested significant money into its digital and data strategy, including\u00a0digital asset management<\/strong>. The collected data was used for targeted marketing efforts across many platforms, including a more robust social media push. The information allowed the corporation to understand its clients better and provide parents with appropriate toy and game recommendations. In Q4 of 2020, Hasbro reported more than\u00a0$1 Billion<\/a>\u00a0in online sales, an increase of 43% YOY.<\/span><\/p>\n

Digitized change lies in utilizing new advancements to guarantee the adaptability and versatility requested by clients. Applications providers and technology and infrastructure merchants have acknowledged and profited from the force of innovative advancements like cloud, big data, mobile, social, sensors, and so on.<\/span><\/p>\n

Here are\u00a0nine ways<\/span>\u00a0how digitalization impacts medium and large-scale businesses and helps them to grow in today’s digital-first world:\u00a0<\/span><\/p>\n