In our latest blog post on digital transformation, we specifically discussed the first steps a company should take when embarking on the path to digitalization. However, many organizations still struggle to understand not only how to digitalize their processes but also when a business can truly be considered digitalized.
In this article, we aim to address the most common doubts—those that many companies tend to keep unspoken, opting for silence and choosing stagnation over change. Below is a list of key points that define a digitalized company.
Business digitalization: the benefits
Before delving into the benefits that digital transformation can offer, let’s briefly define its meaning. Business digital transformation is essentially the integration of unified digital technologies within a company. The goal of digital transformation is to provide operational optimization and value to customers while simultaneously improving the employee experience.
It’s not just about adopting innovative technologies; digitalizing processes and documents involves a profound rethinking of how operations are carried out. To transform a company into a resilient organization, it’s essential to start by listening to the needs of partners, customers, and collaborators, with a focus on simplification.
Among the potential benefits of business digitalization, the following stand out:
- The automation of tasks, which enables an improvement in the user experience,
- The elimination of paper documents, which inevitably reduces human error,
- Encouraging an environment focused on excellence through the enhancement of employees’ skills, a fundamental step to take when aiming for business digitalization.
All these aspects converge into a single outcome:
- Improved internal communication between the various departments that make up the company, which effortlessly translates into growth and business digitalization.
Business digitalization: the key factor that make a company a digitkal leader
“Digital transformation is no longer a choice; it’s an essential factor for generating revenue, profits, and growth,” said Vivek Bapat, Senior Vice President, Global Head of Marketing Strategy and Thought Leadership at SAP.
In a study conducted with Oxford Economics, SAP revealed a significant insight: companies actively pursuing digital transformation boast higher profitability. Specifically, the study found that 84% of global companies believe digital transformation is crucial for their survival over the next five years. However, only 3% have completed transformation initiatives that encompass the entire organization.
Below is an analysis of the four components that define a digital leader, as outlined in the aforementioned study.
Business digitalization: digital transformation as a transformation of the business model.
One of the aspects that makes a company a true digital leader is its ability to interpret digital transformation as a transformation of the business model, rather than a standalone technological project. Technology is reshaping business models. Many well-established models are being challenged, paving the way for new operational approaches and opportunities.
From the integration of physical and virtual systems in smart factories to the use of data to optimize the customer experience, and the exchange between stakeholders through open and participatory platforms, everything takes on a different shape. Everything must be revisited to remain competitive in a constantly evolving and ever-changing market.
Business digitalization: prioritizing talent
“Wherever and however excellence emerges, general mediocrity immediately allies and conspires to suppress it.” A. Schopenhauer
Let’s talk about talent, the top priority for companies aiming to lead in the world of digital transformation. Cultivating talent can sometimes be particularly challenging, but when it is given priority, everything takes on a new meaning.
Recent studies have shown that 71% of leaders believe that digital transformation initiatives make it easier to attract and retain talent, compared to 54% of the total sample. In other words, companies deeply immersed in the digital world invest significantly more in upskilling their workforce compared to those still distant from it.
Business digitalization: new digital infrastructure
Another aspect that allows a company to be considered digitalized is undoubtedly its digital infrastructure. The vast majority of business leaders who have embraced digitalization state that meeting diverse business needs requires a combination of front-end and back-end infrastructures. This new structure proves to be absolutely essential if the company’s goal is to be growth-oriented.
Business dgitalization: investing in innovation
The final but equally crucial element that makes a company digital is its innovation-oriented mindset—its focus on research projects that can enhance competitiveness in the market and boost revenue, even during periods of significant crisis.
Notably, 50% of digital leaders are already working with Artificial Intelligence and Machine Learning. Big Data and Analytics are also on the rise (94% compared to 60%), as well as the Internet of Things (76% compared to 52%).
Conclusion
As we have all observed, recent years have been favorable for the growth of business digitalization. In particular, both in Italy and around the world, there has been a strong focus on the aspects and methods that enable a company to truly be considered digitalized, significantly improving its internal performance.
Today, it is clear that digital transformation is an ever-growing change, and business digitalization remains a highly fertile ground for investment. This allows companies not only to become more competitive in their respective markets but also to adopt a vision that transcends the past, viewing the present as the near future—the perfect moment to build business digitalization.
Give it a try and see for yourself!
