Business digitalization – significant goal and hidden benefits for the whole supply chain
Everyone is talking about digitalization, investments in digital transformation, industry 4.0 and so on. However, this trend will continue its spread, gaining volume. The analysis shows that the importance of the digital market will reach USD 3,546.80 billion by 2028, exhibiting a CAGR of 22.1% during the forecast period.
We agree with the tendencies and prognosis but let`s go into depth about why digitalization is so needed because behind all these changes stand a significant goal and benefits for the businesses.
First, it is good to explain why digitalization is essential. Digital transformation means adding digital capabilities to the production processes and improving your products, assets, work conditions and customer experience. Digitalization enhances the overall efficiency allowing better risk management, real-time monitoring, and timely prediction while navigating new revenue generation opportunities and increasing customer value. These digital capabilities automate the processes and product customization that are the core of the strategy. Moreover, digital transformation plays a lead role in the coverage of emerging customer demands, which essential competitive advantage in the constantly changing economic environment. However, digitalization gives also operational and productive benefits, reducing operating costs and increasing agility and transparency.
The various advantages of digitalization bring relevant benefits. Industrial digital transformation allows the use of different practices and tools that, in combination, could be significantly beneficial towards:
On the one hand, the automation of the process reduces the time to market. Also, it minimizes the time for response to the changes in the market, driving innovation and preparing the business to anticipate any disruption.
Using digital technologies means changing the business model and providing new value-producing opportunities. As we already mentioned, digitalization enables the creation of new products and services, opening the door for new business opportunities and revenue streams. Furthermore, the capabilities of digital applications allow better business analytics, empowering the process of decision-making by identifying patterns.
Digitalization allows the creation of digital workflows, forcing critical control checks and reducing human errors. This reflects the overall efficiency, enabling the businesses to reduce operational costs. Combining digital technologies, analytics, and streamlined operations increases productivity and impact the company’s overall performance and KPIs.
If you want to evaluate the digitalization extent of your business, check the following factors:
- Focus on data-driven solutions (data strategy, automated data flow)
- Risk management (technologies providing planning, tests, and predictions of production results)
- Implementation of Business and IT (integration of applications/ platforms that would are value-added to your process and workflow)