Business is always influenced by the tools and habits of clients’ everyday lives. Nowadays, those technologies include voice recognition, social media integration, mobile payment and cloud computing. Through digital technologies you can promote, sell and share improved and innovative products, services and experiences. Furthermore, companies around the world have gained new means to provide better customer service, design attractive benefits and increase efficiency. Digital technologies also allow continuous development of innovative business models that create new markets or fundamentally transform those already existing.
Why Invest in Digitization?
Nowadays, digitization means adjusting your business to operate smoothly in the world. Technological development, increased data volume, commoditization risk, greater consumption and increased competition mean that all industries will eventually have to face the digital transformation and rethink their entire business. Yesterday’s tools and knowledge are no longer sufficient, and enterprises must find up to date options that help them face the following challenges:
- Lack of efficient and adequate IT systems for digitization
- Replacing complex legacy systems and with designing new processes and business structure
- Integration of traditional and mobile/online channels
- Managing regulatory standards and compliance issues
- Capturing a massive amount of customer data generated in different channels
If you want to make sure that your business will succeed, you need to acquire an instinctive sense of how products fit into the digital world and how to sell them in an attractive way for technology-savvy customers. The increase in the quantity and validity of data also has very important consequences. Wisely managed companies democratize access to data, which is why new groups of users, previously having little or no access to given information, can now detect previously obscure regulations and opportunities, and then use them accordingly. There are plenty of examples around the world:
- Social work – Pearl Choragudi from India created the MyRights app to educate women about their legal situation and encourage them to report domestic violence
- Retail – when a client buys a product in an online shop, the information about this purchase goes to the store’s logistics department where preparations to supplement the stock levels are made
- Cryptocurrency – alternative, online currency based on distributed database networks, the so-“blockchain”
Digitization, just like mobile technologies, has many faces, including cloud computing, big data and social media. These are the main areas that will dominate future business development trends. According to Gartner, 50% of companies had already adjusted their business models based on technological solutions by the end of 2016. Research estimated that this number would rise to 83% by 2019. Digitization is a fact. It allows detailed analysis of the changing business environment, building new business models and developing in line with market expectations. Digitization is simply the bridge that connects us to the future. Consider these examples of how new business models evolved in the digital age:
- From bookstores to e-books
- From paper directories to modern marketplaces
- From cassette players to smartphones
- From record stores to streaming
- From face to face meetings to video conferences
- From waving at taxis to Uber
So, does digitization affect your business, and how can managed services help you to adjust in the new era?
Managed Services Assure Successful Digitization of Business Models and Processes
Digitization creates completely new opportunities and requirements for business activities, and radically changes the ways in which we work, create value, interact each other and simply live. Digitization breaks traditional business operating models. We need to change strategies, processes, operating methods, sales practices, employees’ skills and corporate culture in order to create services that constantly produce added value. Businesses must ask themselves what digitization is and how it affects their daily operations in particular. This is especially valid now, when more and more digital technologies and services supporting the transformation are becoming available.
Digital transformation means adopting new technologies in multiple ways. For example, augmented reality applications help maintenance specialists to identify and repair faults faster, automatic data integration reduces the amount of manual labor performed by accounting teams, highly advanced analytics improve costumer expectation predictions, and digital identifiers make it easier to locate goods and keep warehouse accounts up to date at all times. That is why companies need to implement a fundamental change in the way they identify, develop and launch new business projects. What is more, digital transformation enables companies to deliver personalized and highly relevant interactions with large numbers of customers at low cost.
Managed services offered and provided by specialized organizations can make your digital journey successful. Companies that provide managed services are specialized in providing fully integrated support and advice to organizations during their digital transformations and in the course of implementing new business models. Providers can help their customers to navigate through the process and create a competitive digitization strategy. They also make sure that advanced and modern managed services for enterprises fulfill all needs of successful digitization. How can external providers support digital transformation in your organization?
Up to date digital technologies require companies to think about cloud-based platforms that support new transaction types and communication protocols, and ensure that web service information can be processed flawlessly. Transforming IT infrastructure into a more efficient and digital model will not only reduce maintenance costs significantly, but will also provide the scalability to support business operations globally. Automation for business and IT implementation helps to transform your business processes by increasing agility and delivering much better customer experience. Thanks to the implemented automation, businesses operate faster, scale more efficiently, and compete more effectively in the digital world. Employees who have been engaged in repetitive, basic tasks can now focus on more valuable, and maybe neglected, activities, and reduce the number of human-generated errors. Automation can be implemented in the legal, finance, human resources and service desk units, among others.
Learn how an External Provider Can Help with Your Business
Digitization is a process of constant change, adjustment and investment in knowledge and technology in order to sell and engage modern consumers more effectively. It is not merely an adoption of new IT devices and tools, but rather a drastic change in a whole organization, from IT infrastructures to services. To go through this process, you will require a comprehensive strategy for digital business transformation which changes your business perspective. Many enterprises still own outdated IT environments and are completely unable to meet the requirements of modern business. During any digital transformation, it is crucial to cooperate with an effective provider with the experience and know-how to help you create a suitable infrastructure environment. Remember that your digital transformation will not happen immediately. Step by step, the provider will migrate your business to cloud-native applications and cloud infrastructure.
Successful digital transformations consist of a few elements. They must be driven from the top management level, requiring consistent engagement backed with appropriate coordination, KPIs, necessary investments and incentives, new business operation models and changes in operational functioning. By approaching this implementation comprehensively, keeping in mind its structure, human and technological resources and business goals, you will gain a lot of benefits.
You may look back at other technologies now outdated and ask yourself if the digital revolution is perhaps a bubble that will soon burst. The answer is no. If you do not start developing your business now, you will fall behind your competition and possibly not recover. Are you going to be prepared?
If you are interested in managed services and how they support digital business transformation, read Comarch’s new white paper, entitled “How to Digitize Your Company with Managed Services”.
Gartner 2017 CEO Survey: CIOs Must Scale Up Digital Business.”.