Benefits of Digitization in Companies

Ignoring the benefits of digitalization could limit the results of your company. Digital transformation has become an obligation due to the coronavirus pandemic, which has completely changed how many business models are organized.

So much so that according to a recent Accenture study, 45% of European companies prioritized going digital in the face of COVID-19. 

And you, do you want to take advantage of the benefits of digitization in your company?

Joining the digitization bandwagon helps companies not to close doors and follow market trends and customer demands. In addition, it allows companies to compete simultaneously so that technology does not stop advancing. These are some of the benefits of betting on digitization in your company.

1. Reduce Time

All processes are streamlined with the presence of digitization. Digital transformation helps apply business models such as economy of scale, increasing production in a single cycle while decreasing fixed costs.

In this sense, it is achieved that the distance between the beginning of the cycle until the final product is assembled and sent to its destination is much smaller. With the reduction of time, the number of goods produced can be increased; thus, profits are raised with the same investment of resources as in the past. Robotization and remote monitoring have contributed to this improvement that lasts over time.

2. Greater Use of Human Resources

With digitalization, all mechanical operations work is left in the hands of more intelligent machines and robots. This gives the possibility of taking advantage of the company’s talent and human resources to dedicate too many more analytical tasks. In this way, it is possible to generate more value for the company since the staff will focus on how to give the company greater profitability and business opportunities.

In addition, the retention of talent in the company is favoured. All the tasks part of a repetitive routine can cause the staff to get bored and think about a change of professional direction that prevents their career from stagnating. If this type of task is left in the hands of machines, we will avoid this negative consequence.

3. Improved Efficiency

Big data tools are capable of predicting customer demand. Thanks to them, it will be possible to carry out a much more efficient allocation of resources that will favour the reduction of production times.

Automation and the possibility of storing information in the cloud also free employees from tasks that can carry out autonomously.

4. Cost Reduction

The self-employed or companies with fewer resources must optimize costs. Taking advantage of all digital media allows to reduce stock costs at a logistics level and establish a direct line of contact with all stakeholders.

This also allows for improving all the production processes that a company can have and will directly impact the increase in sales.

5. Increased Flexibility

Digitization can lower the number of visits by consumers to the physical store and promote a more significant commitment to electronic commerce. In this way, the consumer has greater flexibility to make purchases without the need to follow a customer service schedule, as was the case in the past.

From then on, the company also has greater flexibility to organize orders and coordinate with the delivery company or its logistics provider, depending on whether it has integrated.

6. Improve Communications

The digital realm opens the door to new forms of communication. E-mail implies greater immediacy both when transmitting and responding. In addition, digitization opens up other channels such as social networks, collaborative tools, multi-conference platforms or sending newsletters to inform about business news.

These tools make it possible to create new strategies to approach customers and improve brand positioning. Thanks to them, any company can show its products or services to a more significant number of potential customers. To do this, the marketing and communication departments have entirely changed their structure to adapt to digitisation’s new challenges.

7. Enables the Development of New Products or Services

Another benefit of digitization is that it favours the transformation or creation of new products or services. For example, a physical store that switches to selling its inventory online will be able to expand its reach and reach many more people. New business opportunities are developed that allow going to new places unattainable only physically.

The benefits of digitization are summarised in a much more efficient production focused on achieving results, reducing costs and increasing profitability. For this reason, more and more companies are committed to digital transformation in their processes.