Advantages of Digitization in Companies

Digitization is an evident fact in the operations of most companies and it is present through multiple tasks, activities, and actions that their collaborators have every day. However, despite the fact that it is an inherent factor in the routines of people and businesses, many still do not recognize its benefits and how to take advantage of digital transformation.

Still haven’t figured out the advantages of digitization? Read to the end and find out!

What is digitization?

In theory, digitization refers to those actions, activities, processes, or devices that convert manual or analog data into a digital format. However, there are differences between document digitization, which transforms physical files into digital ones, and business digitization, which converts analog workflows into digital information, such as business management in the cloud.

So, we can say that the digitalization to which we refer in this article is the one that is oriented to the transformation of organizations, that is, the conversion of the processes and activities of the company or the business around a communication restructuring. And infrastructure based on digital media.

Digitization, in this sense, means that an organization relies on technology to carry out most of its interactions —whether with people, machines, or other companies— in order to resolve its needs more quickly.

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This obviously requires enabling, improving, and digital transformation of its models, processes, and activities.

Advantages of digitizing a company

It is time to talk about the benefits —and some challenges— that exist within the digitization of organizations.

Time Reduction

One of the great advantages of digitization is that of providing substantially faster processes, such as economy of scale, which allows for increasing the productivity of a single workflow, reducing the period of time required.

This means that thanks to automation it is possible to reduce the distance between the beginning and the end of the work cycle, being able to offer products or services to the public theoretically with greater agility.

Use of human talent

Digitization of all repetitive or mechanical work remains in the hands of technology, leaving the company’s human resources free to carry out tasks that require greater creative or analytical processes.

In this way, the company will obtain a greater generation of value by using the skills of collaborators in activities that have more to do with profitability and the creation of business opportunities for the organization.

Retain staff

Likewise, the adoption of digital and technological processes offers the possibility of retaining talent by eliminating repetitive actions and having a much shorter work motivation curve, preventing the worker from feeling that he is stuck at work and resorting to other professional options. This goes a long way in improving the employee experience.

Increased efficiency

One of the main priorities of a risk manager especially one focused on the IT area (Information Technology), is to decipher how various digital technologies can increase the general efficiency of the company, avoiding lost opportunities.

In this sense, there are technological alternatives such as Big Data, Machine Learning, or Artificial Intelligence that make it possible to predict market demands and the behavior of potential consumers.

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Cost reduction

A concern in companies, especially SMEs, is the use of resources. So the optimization of costs can be an essential activity for the interests of owners and managers.

In this sense, digital technologies strategically incorporated into the company’s processes can become a great ally in activities related to inventory management, logistics, or the financial area.

Therefore, below we will provide some examples of how the use of technological processes can favor the use of resources and, consequently, the reduction of costs in various sectors of the organization.

Internet of things

Interconnecting objects through digital applications and allowing the continuous flow of information between them becomes a great economic benefit since it allows knowing their location and status at any time.

For the financial area of ​​the company, it is vital to know how the processes work and, by having real-time information on each activity regardless of the department, quick and strategic decisions can be made.

Augmented reality

Allowing the viewing and review of real images of virtual elements to be completed, give companies in any segment, especially in medicine, entertainment, or tourism, the possibility to design commercial applications and reduce production times or value creation.

Expense Management Software

Likewise, through travel and expense management software, companies and their collaborators can generate accurate, fast, and simple expense reports in order to classify, optimize, and comply with planning. This solution is a great tool to optimize the processes of the financial department of your organization, favoring the generation of better business opportunities.

Conclusion

Technology is a great ally for organizations that seek to develop new activities that allow optimizing the use of resources, talents, and available capital. Undoubtedly, digitization is a step forward in the search for profitability, efficiency, and responsible use of the solutions offered by current business-oriented technology.

To continue learning on the subject, we recommend continuing with our article on cost and expense optimization strategies to discover how to apply work methodologies that favor the use of capital.