At a time when the market is constantly changing and competition is increasing, companies need to stay on top of modern technologies. Digitization of business processes is one way in which companies can increase their efficiency and competitiveness. However, in order to achieve digital transformation, it is necessary to integrate various IT systems, digitize and optimize processes, and change the way of thinking and organizing work. In this article, we will outline what are the benefits of digitizing business processes in organizations, what are the stages of digitization, and what barriers may hinder its implementation. We will introduce you to what tools and technologies are most commonly used in the process of digital transformation and how they can be adapted to the individual needs of the company. We invite you to read more!
Global digital transformation of economies and digitization of businesses
The global digital transformation of economies is not just a song of the future and a trend, but also a reality to which businesses around the world must adapt. Digitization of business processes is becoming essential for companies that want to grow, develop and succeed. By using modern technologies and tools, companies can increase their productivity, improve the quality of products and services, and reduce costs. At the same time, digitization allows for better customer service and integration with other companies. However, to achieve full digital transformation, companies must innovate in every area of their business. It's not just about changing business processes, but also organizational culture, the way they communicate with customers, and their approach to data and analytics. Global digital transformation is not only a challenge for companies, but also an opportunity for growth and expansion into new markets. It certainly doesn't make sense to ignore this trend or to swim against the tide in business because it is certain that our company will be left behind and miss the opportunity.
What is the difference between digitization and digitalization?
Although at first glance these words may seem synonymous there is a certain, rather subtle, difference between them. In many publications, "digitization" and "digitalization" are used interchangeably. In practice, digitization is the conversion of analog data into digital, that is, the conversion of various types of paper documents, such as ledgers or archives or photographs, into digital form. In this case, too, the term "digitization of documents" is very often used. In contrast, in a broader sense, digitization is the process of using digital technologies to transform traditional business activities into digital processes. Digitization focuses on automating and optimizing business processes and introducing innovative solutions that allow for efficient business management and better customer service. Unlike digitalization, digitalization encompasses many areas, such as marketing, sales, logistics and HR, and innovates in each of them. Therefore, digitalization is a broader concept and a more comprehensive process that contributes to improving the quality of a company's work, increasing productivity and reducing costs.
Key technologies supporting the digitization of companies' business processes
Today's information technologies offer companies a range of tools to automate, optimize and digitize business processes. One of the primary solutions is the implementation of an ERP (Enterprise Resource Planning) system, which integrates various departments and processes within a company. Another tool is CRM (Customer Relationship Management), which allows you to manage customer relationships and improve the quality and speed of service.
One of the most important and effective technologies, in supporting the digitalization of companies' business processes, is DMS (Document Management System). In Polish, usually referred to as a system for the electronic circulation of documents and corporate matters. It is electronic document and process management that is sometimes used most often in the context of understanding the concept of digitizing company processes.
Important technologies supporting the digitization of business processes also include RPA (Robotic Process Automation), which is the automation of processes using programmable robots, making it possible to eliminate human error and increase efficiency. Also worth mentioning is IoT (Internet of Things) technology, which allows real-time data collection and analysis, and enables remote control of equipment.
Another important technology is artificial intelligence (AI), which allows for the automation of decision-making processes, data analysis and machine learning. Cloud computing, which allows data and applications to be stored and shared in a decentralized manner, is also an extremely important tool.
Finally, it is worth mentioning blockchain technology, which enables secure and unalterable storage of data and transactions. The implementation of these technologies allows for the automation, optimization and digitization of business processes, which translates into increased efficiency and competitiveness for the company.
Biggest barriers to digitizing companies' business processes
Implementing business process digitization can be complicated and resource-intensive, so one of the biggest barriers to digitization is cost. Many companies are concerned about the costs associated with purchasing and implementing software and training employees to use it.
Another barrier is a lack of knowledge about digitization and a reluctance to change existing work processes. Many employees may base their work on methods that are tried and familiar to them, and changing processes may cause resistance and reluctance.
Another problem may be securing data, which in digital form is more vulnerable to cyberattacks. As a result, companies need to invest in adequate security and data protection systems, which also generates additional costs.
Another barrier to digitization is also the lack of clear regulations and standards governing digital processes in specific industries. The lack of guidelines can lead to ambiguity and uncertainty about the legality and security of digitization, which in turn hinders progress and innovation in this area. Issues related to the creation of appropriate procedures and the implementation of standards to ensure the security of information in an organization, such as ISO 27001, are important. This is especially true for vendors that provide us with applications and software for process management.
The last, but equally important barrier, is the lack of adequate technological infrastructure in the company and the lack of qualifications and skills of employees. Without the right technology infrastructure, digitization may not be possible, and a lack of employee skills and qualifications may hinder the implementation of new processes. In such situations, organizations often opt for support in the form of specialized IT companies that support the entire process with their experience.
Is it worth it to digitize a company's business processes?
The evolution of a company using modern technologies is certainly a difficult process. It involves many challenges, such as costs, reluctance to change or lack of knowledge on how to effectively implement a digitization project. It requires the involvement of employees throughout the organization, their training and the creation of appropriate procedures and work standards. It is also necessary to create an appropriate technological infrastructure and secure the organization's data. All of this is entirely compensated for by the many benefits that come from carrying out a comprehensive digitization of a company's business processes. Do you want to be sure that the entire implementation of the project will go smoothly and smoothly? Do you need an experienced business partner to carry out comprehensive digitization of your business? Contact Primesoft now, which has been assisting Polish and foreign companies in the computerization of work processes for 20 years.