What does Digitalization actually imply?
- October 2, 2015
- Posted by: Priyanka Bose
- Category: Digital Marketing
What is digitalization? If we have to answer this in one single sentence then we can explain it as- the adoption or increase in use of digital technologies. But this sentence does not behold the whole concept of digitalization. Digitalization is beyond the inclusion of digital technologies and hence has a greater meaning.
What is digital technology?
Digital technology refers to devices where information is stored, using the states of positive i.e. ‘1’ and non-positive i.e. ‘0’ – the binary system.
And the process through which a device is transformed into a digital one is known as digitization.
Surely, it is clear that the use of digital technologies is increasing day by day.
But the meaning of digitalization is far more than the substitution of analog by digital technologies; it means transforming the digitize resources into the gaining process of better financial inclusion and operational efficiency.
Be it a company or a country digitalization can be used as the driving process of short time strategic and profitable growth.
For a company it is a great transformation, because digitalization can offer more compelling customer experience moreover a well planned revenue generation for the company itself.
Matt Reilly posted a couple of months ago an interesting topic based on a U.S. research “CEO Briefing 2014 –The Global Agenda: Competing in a Digital World”.
He stated, “68 percent said that their investments in digital technologies are primarily focused on process efficiencies and cost reduction, while just 25 percent said such investments were geared toward helping the company reach customers. The emphasis is on greater operational efficiency rather than on growing sales, opening new sales channels, or creating new products or services.”
Companies in U.S are using digitalization as the transformation process of both the revenue generation and operational gain. So, increasing the use of digital technologies is not enough rather transforming it in the right way will only define a true digitalized company or a country.
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