Leveraging Digitalisation Strategies for Business Growth

What is Digitalisation?

Digitalisation can be defined as the seamless transformation of manual processes into digital formats. In business, we can say that digitalisation is the transition of all business activities from manual to automated processes. Many businesses do so with the aim of streamlining operations, improving efficiency, and enhancing customer experiences.

Digitalisation has really improved a lot of things in the internet world, to the point that many are now able to conduct business entirely online, from marketing to sales to customer service. This shift towards digitalisation has allowed businesses to reach a wider audience, reduce costs, and adapt more quickly to changing market conditions.

According to an article written by The Upwork Team, published on March 3, 2023, the number of internet users has grown to around 5.3 billion. This means that businesses have a vast pool of potential customers to target through online platforms, making digitalisation a crucial strategy for growth and success in today’s market. Additionally, the convenience and accessibility of online business operations have also contributed to the rise in e-commerce transactions worldwide.

How does digitalisation affect business growth?

Today, many businesses have shifted to paperless operations, reducing costs and increasing efficiency. This trend towards digitalisation has also allowed businesses to reach a global audience, expanding their market reach and potential for growth even further.

Many companies that started off their activities with manual processing of tasks, like Microsoft, Netflix, Tesla, Best Buy, Ford, Target, and others, have transformed to digital processing. This has led to these businesses growing exponentially and becoming industry leaders in their respective fields. The adoption of digital technologies has not only streamlined operations for these businesses but also opened up new opportunities for innovation and market expansion.

Statistically, Microsoft, a popular tech company, began its digital transformation when CEO Satya Nadella took over in 2014. Take, for example, Microsoft’s cloud networking system, Azure, which has become a major player in the cloud computing industry, generating billions in revenue annually. This shift towards digital processing has not only improved efficiency and customer experience for Microsoft but has also positioned them as a key player in the technology sector.

Before the digital transformation, in early 2014, Microsoft’s stocks were selling at $38 per share. Today, these stocks are worth $136 per share. In that same period of time, Microsoft’s revenue increased by $28.5 billion, from $93.5 billion to $122 billion.

This clearly shows how digitalisation can significantly impact a company’s financial performance and market position. It is evident that Microsoft’s strategic move towards digital processing has paid off tremendously, solidifying their position as a leader in the technology industry.

Bridge

Let’s take a different route, but similar to the one that we started with, and differentiate these three terms that are often used interchangeably: digitalisation, digitisation, and digital transformation.

Digitalisation refers to the process of using digital technologies to change a business model and provide new revenue and value-producing opportunities.

Digitisation is the process of converting information into a digital format.

Digital transformation is the integration of digital technology into all areas of a business.

Understanding the distinctions between these terms can help companies effectively navigate the digital arena and stay competitive in today’s market.

How can businesses leverage digitalisation strategies for growth?

We have various digitalisation strategies that companies can choose to implement depending on their specific goals and needs. Some common strategies include adopting cloud computing, implementing data analytics, utilizing artificial intelligence, and enhancing customer experiences through digital platforms.

Let’s look at some of the common digitalisation strategies that businesses use:

Product and Service Digitalization

Implementing digitalisation for your products and services can improve your business’s sales. Here is how:? When your entire sales process is manual, tracking and managing products or services becomes complex and even tedious. However, when you use digitalisation to track and manage your products, the entire process becomes far easier and more efficient.

This brings us to the fact that when you have mastered your product and service data, you will likely be able to identify the errors and inefficiencies quickly, allowing you to work on them quickly for improved business performance. And when the entire process is completed efficiently, it can help you reach a larger audience while also improving customer satisfaction through faster and more convenient transactions.

Examples of digitalisation of products or services include:

• Bar code or QR code imprinted on your products for easy tracking and inventory management.
• Online booking systems for services.
• Digital payment options for customers.

These digital solutions not only streamline operations but also enhance the overall customer experience, ultimately leading to increased profitability and growth for your business.

Internal Processes Digitalization

Digitalisation of a business’s internal processes can help boost data security as well as streamline task processing time. For example, a bank like Hanseatic Bank, may feel obligated to protect user data while also improving marketing time and introducing a new business model. In this case, the management team or those in charge of marketing and data management may choose APIs and third-party providers to ensure secure data transmission and automate marketing campaigns, thereby increasing efficiency and customer satisfaction.

An open banking API that is based on the Open Banking technology stack would be the preferred solution for the bank’s internal processes. It would not only provide a secure environment for customer data storage and processing but also allow for adaptation and agility as the bank grows and adapts to changing market demands.

Supply Chain Digitalization

The supply chain is another area where digitalisation can improve efficiency and reduce costs. Implementing blockchain technology can enhance transparency and traceability in the supply chain, ensuring that products are sourced ethically and delivered on time.

Managing the supply chain manually can be a headache and prone to errors, leading to delays and increased costs. Fortunately, with the advancement of technology, it is now possible to incorporate digital technology into the supply chain in several ways. For instance, we have seen the rise of automated inventory management systems and real-time tracking of shipments, allowing for better decision-making and streamlined operations.

Customer Interaction Digitalization

Another area where digitalisation has greatly improved business management is customer interaction. Companies can now utilize customer relationship management (CRM) software to track customer preferences, feedback, and behavior, allowing for more personalized interactions and targeted marketing strategies. This digitalization of customer interaction helps to build stronger relationships with customers and ultimately improve overall satisfaction and loyalty.

Why is it necessary to digitise customer experience? The main reason is that the customer experience is as vital as the products and services offered by a business. Therefore, digitising the customer experience can lead to increased customer retention, improved brand reputation, and ultimately higher profits for the company.

Conclusion

Having understood how businesses can leverage digitalisation to improve their business growth, we can conclude that digital transformation is a process that each business today should prioritize in order to stay competitive in the market and meet the evolving needs of customers. Businesses that use digital tools and technologies to improve the customer experience can achieve more seamless and efficient interactions with their target audience, resulting in long-term success and sustainability.

Image Credit: BusinessDesk

About Stone Age Technologies SIA

Stone Age Technologies SIA is a reliable IT service provider, specializing in the IT Solutions. We offer a full range of services to suit your needs and budget, including IT support, IT consultancy, remote staffing services, web and software development as well as IT outsourcing. Our team of highly trained professionals assist businesses in delivering the best in IT Solutions. Contact us for your IT needs. We are at your service 24/7