Digitization Process as a Necessary Part for Business Development
It’s impossible to overestimate the technology’s impact on business development. The number of manual types of work reduces each year because of different tools and systems implementation. Business owners strive to achieve efficiency and precision in reporting, data maintenance, and operating activities through processes’ automation. While several years ago digital tools were crucial factors to have an edge over other market players, the pandemic that happened in 2020 showed that data digitization and respective transformations are crucial steps for any type of entity that plans to survive in future years.
So what’s the best point to start? How to distinguish between the digitization process and the digitalization of business? What’s the best way to apply modern knowledge and start using digitization technology with the highest gain?
Digitalization of Business & Digitization of Data Representation
It’s obvious that when it comes to the words “digit” and “data” mentioned in one sentence the main goals are either to discuss the data format change from the hard copies to the digital ones or to stress its vital impact. Although the conceptual difference between the digitalization of business and prosecution of digitization technology lays in the scale and the number of tasks to be completed at each stage. To make a long story short, the first term includes the second one as a mandatory step but is not limited to it.
Digitalization of Business
The modifications related to the entire entity or group of entities come to complex measures taken for significant changes with certain aims. Digitalization is applied to achieve the following goals:
- Improve data storage and maintenance, manage easy backup, convenient access to the files, and option to set authorization levels;
- Increase in data protection and security;
- Increase teams’ mobility and productivity;
- Improve document flow inside and outside the company and save time on it;
- Improve reporting and analysis, as properly stored and access data is a valuable source for analytics;
- Categorizing, search and document management becomes easier and efficient;
Thus, the described measures are taken to improve performed operations through the implementation of digital tools and programs in order to increase efficiency and revenue. The main fields where technology may be extremely useful are:
- Document management;
- Planning and analysis;
- Sales and clients relationship management;
- Procurement and vendors relationships management;
- Casual activities like meetings, calls, presentations;
- Project management activities;
- Improving internal controls management;
The scope of activities, which can be significantly improved by the modification is very wide and is limited only by the fantasy of the entity’s stakeholders. However, data digitization is one of the stages of this process, actually the first one.
It is impossible to develop business and rely on digitization technology without essential preparations, which include modification of basic data elements into the electronic format. It doesn’t matter whether it’s a contract or personal profile of an employee, a client’s data, primary accounting documentation, payment data, sales reports, projects, or any other type of record regarding the company’s operations, it should be turned into the format for further processing by systems and programs. Thus, the mentioned modification is called data digitization and require the resolving of the following tasks:
- Digitization of data representation;
- Building the process, which allows creating initially digital documents and managing them.
Completing these tasks of the digitization process brings the following advantages:
- Convenient document approval and follow-up;
- Convenient data storage and access, thus, quicker search and sharing;
- Savings on printing costs;
- Savings on rent for a data storage room;
- Reduced risks of data loss with a simple backup and restoration process.
However just to make scan-copies or enter data into the computer is not enough for effective digitization of data representation. The specific software decisions have been developed in order to assist companies with the tasks described above.
Tools and Decisions
The options and opportunities appearing for companies, which went through a transformation, are prodigious. CRM systems, CMS, digital accounting and payroll, convenient project management, and secure data storage are not the exhaustive list of software, which simplifies work and increase its results. However, the last step before the opening of these opportunities is to build document turnover depending on the type of entity and tasks it has. Happily, technology offers software decisions for this stage as well.
Planning data digitization starts with the decision on which format to use. Electronic papers are worth mentioning as one of the first decisions in regards to this task. The brightest example of them is an electronic book. Although they are not the best suitable decision for companies which operation is supported with a high number of documents, they’re still used in advertising, sales, graphic designs, and some other activities.
The much wider functionality has an electronic document decision, which allows storing any type of content (documents, pictures, programs, videos, sound, any other) in digital format. Any data stored in the tablet, laptop, PC, the smartphone is considered to be an electronic document. The process of creation depends on its type, but the simplest ways are scanning, creating Word, Excel, or other files using respective software.
When documents have been converted from analog to electronic type, the next task to resolve is storage. Large entities and corporations cannot store all the necessary documents using only the computer’s memory. Servers may be required but their costs are high. The alternative decision allowing saving money on server room maintenance is cloud storage. Buying the license for specific software allows to store and maintain data online with the option to access it from many devices and locations.
Virtual Data room
Virtual data room is a helpful online decision when it comes to very confidential documents with limited access. It allows data storing and sharing to a limited number of people via the site or specific application. A good decision when it comes to projects under development, due diligence, or audits.
While the world changes and technology’s impact grows the best decision is to adapt to these changes. Business development applying to digitization technology is an essential step to go through, which opens numerous opportunities leading to the company’s prosperity. Although it can be time-consuming and require extra resources at the initial stage, the result allows for achieving significant savings and increasing in gains.