Digitalisation

Digitalisation is a process of change required to stay up to date in your industry, respond to emerging needs and follow market developments. Nowadays, undertaking digitalisation is essential for companies that intend to grow and remain relevant.

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Digitalisation

What your company gains through digitalisation

Digitalising your company has a number of advantages, the most important and beneficial of which are outlined below:

1

Your processes will become more effective, smart and secure

Not only will you gain a broader overview of the process to be digitalised, the way it works and how it can be improved, you’ll also reduce the risk of human error.

2

Your services will enhance customer experience

Digitalisation delivers simpler ways of working for you as well as your customers. Your products and services will be more user-friendly, and it will be easier for you to help your customers.

3

It provides better grounds for decision making and leads to better decisions

A digitalised company provides better data as well as a better basis for making correct decisions. This will have a positive effect on your revenue and expenditure.

4

You’ll save time and can focus on what you want

You’ll be able to focus on your core activities to a greater extent, enabling you to work more effectively and profitably.

Why is digitalisation important?

Together with Oxford Economics, SAP has compiled a report entitled “Digital Transformation leaders are few and far between” which asserts that the majority of companies that undergo digital transformation believe it has a positive effect on the business and boosts profitability. It also reveals that 70% of respondents noticed an improvement in customer satisfaction, and said it had become easier to recruit and retain new talent. Some years ago, digitalisation was considered by many to be a trend, but this is a clear indication that it pays dividends and represents a good investment.

According to IHM Business School, companies that choose not to digitalise run the risk of gradually dying out. This is because the world around is changing faster than ever, and enterprises must embrace change in order to stay up to date and remain relevant on the labour market.

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What’s the difference between digitalisation, digitisation and digital transformation?

Digitalisation, digitisation and digital transformation are three words that sound very similar but have totally different meanings. We’ll take a look at the differences here.

What is digitalisation?

One definition of the word is the utilisation of digital technology in order to streamline and change processes. Customer service is one example. Many businesses have moved from a telephone-based service to a digital solution in the form of a chat facility directly accessible online. Some even use an AI-based chat solution which does not require personnel. Although the method of providing customer service is the same as ever, the process of creating a case has become more seamless since the introduction of digital technology.

Digitalisation of a company needn’t entail digitalisation of the entire operation, and is usually a means of making certain processes faster and more straightforward.

What is digitisation?

Digitisation is the process of converting analogue objects into digital form, for example, scanning a document to generate a PDF or recording music for conversion into audio format. Digitisation refers to the tools chosen in order to carry out a process of digitalisation.

What is digital transformation?

Digital transformation takes place when a company carries out digitalisation of its entire operation, and is thereby a more extensive and wide-ranging process. Digital transformation may involve the gradual digitalisation of internal processes until the company has fully completed the digitalisation process. There is no exact template outlining how digital transformation should be carried out, and how long it takes, but a strategic, goal-orientated approach is a common feature of every process.

Read more in our guide: Digital transformation in three steps

What should you consider ahead of digitalisation?

Before undergoing digitalisation or digital transformation you’ll need to identify the location of your obstacles, problems, frustrations and time thieves. You also have to listen to what your customers expect from you moving forward – there’s usually a lot of room for improvement in this area.

Take the time to check your current processes to ensure they are correct, well documented and complied with. This is important in order to avoid the risk of processes disappearing on the journey of change which digitalisation entails. With this in mind, you must also be particularly mindful of the processes which are not official. It’s extremely important to be honest about your existing processes in order to ensure digitalisation is effective.

How to prepare for successful digitalisation

Planning and training are fundamental to successfully implementing digitalisation. The process of change must retain the full support of the management group, and form part of the agenda at each meeting. It’s wise to start on a small scale, and gain experience by working alongside those at the company who are interested, and want to implement change, before involving the entire organisation.

Once you have the necessary experience and are ready to implement changes which impact on the company as a whole, you’ll need to ensure the entire workforce is on board, and that they know and understand what is expected of them. It’s worth bearing in mind that the digitalisation of a company should be looked at and treated like a process of change, with all the challenges this entails. This may involve a number of risks – which is why it’s wise to get help from a partner with expertise in the field, who can keep them to a minimum.

It’s important that you have confidence in your provider, feel they've understood your business and are ready to deliver solutions that meet your unique requirements.

Nordlo can help to digitalise your company

Digitalisation is a process which may look different depending on the needs of an organisation. It requires both experience and expertise in the field.

Nordlo can guide your company throughout digitalisation or digital transformation with the aim of creating solutions that develop and create value for your company.

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Author:

Weronica Sjögren

Productivity consultant, Växjö Sweden

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