The Role of Digitalization and its Impact on Business Growth

Technology has revolutionized every field of human interest and with the development of wide digital networks, it’s mandatory to say that the world has not only moved towards digitalization but is currently at its peak. We can see its impact especially in the business model creating new lands of opportunities. It’s a matter of potential values and scope on one’s business. Research on digitalization and its impact on business has increased since 2012, and much progress has been made to idealize it as the only future of the world.

What is digitalization? Well, it’s simply the use of data in business. It’s the use of digital technologies for connecting people, companies, systems, products, and services. The use of data in business by using digitalization has changed the prospect of it. The increased availability of digital data by progress in analyzing digital data has the potential to structure, shape, and influence the modern digital world. So digitalization is the application of digital technologies that bring about changes in business firms and the business market. Digitalization increases the efficiency of the business firm. It enhances the firm’s productivity and potential that satisfy the customers and multiplies the revenue. Digitalization has brought novelties to the business including many benefits that are:

· Increase in the efficiency of all tasks

· Very few chances of human error

· Safe storage of data in clouds

· Less operational cost

· Crystal visualization of data

· Enabling data analysis

Workflows are being streamlined and human mistakes are reduced related to the development of digital technologies. Thanks to these streamlined workflows, all operations are carried out more efficiently, which allows companies to reduce operational expenses.

A business firm’s ability to perform a task depends directly or indirectly on its sets of skills that define its capacity towards the task and digitalization has increased this capacity in many ways. A firm’s digitalization capability depends on three things;

· Data

· Permission

· Analytics

First, the capability of the business firm towards data-related activities is an essential component to determine the firm’s digitalization capacity. The generation, transformation, and storage of data is the first step towards digitalization. The company must potentially organize the data and make it available for commercial use. The Second thing important is the legalization of the data according to international rules so it is easily accessible. Data must pass the moral test of society so that the customer can fully rely on it. It also increases the trust of the firm and its management. The Third step involves giving access to customers to data so that they can analyze and visualize the firm. This is the step of data analytics. So these three components form, the basics of business digitalization and must be followed by every firm for business growth and production.

Digitalization has increased the company’s presence. A company’s visibility increases if it is actively present on social networks, online stores, and business markets. It is one of the most visible benefits of digitalization on business. A company’s business model must include digitalization for fast and continuous online activity as in the digital world it’s not the big fish that eats the small one, but it’s the fast fish that eats the slow one.

Moreover, digitalization helps to create new channels of communication all across the world. E-mails, social sites, and networks are the example of these communication channels that have brought the digital world in hand fist and revolutionized the business. This increases your revenue and business worth. Even by staying at home, you can create a business forum by using different digital channels and earn revenue. This is also the fruit of digitalization.

Business digitalization has a huge impact on innovation. As technology progresses, it simply forces you to act and innovate. And it’s hard to stop once you begin. You will be made more aware of new trends and opportunities thanks to continuous innovation.

Customer behavior matters much in digital business. To confirm this claim, 81% of consumers went online to research before going to the store. Also, there is a growing online purchasing trend, as we all know. With the full use of digital technology, customers now use the web and mobile apps to find information whenever they want. And now, customers not only compare your goods and services to direct competitors but also compare them with different offers from the industry which can offer even better products and services. Up to this point, firms are continually pushing customer experience to balance out.

Digitalization has a huge impact on business. One cannot measure its potential. But the things that do define the digital firm’s success are its capacity for digitalization skills, customer satisfaction, the benefits offered to the customers by the firm, and value demonstration that involves interaction with customers to convince them for buying firm services. These are the basics for achieving one’s goals in digital markets.