Digitalization signifies using digital technologies to improve a company’s business procedures, products and services. While there are many positive aspects to digitization, additionally, it poses a number of obstacles.
Advantages of digitization
Digitization can improve a company’s https://cloudycrowd.net/2020/03/23/business-digitalization-implications-and-solutions/ internal functions by eliminating manual tasks and reducing costs through automation. In addition , it can help a company gain new customers or increase its existing customer base.
Drawbacks of digitization
A key disadvantage of digitization is the fact that that digital information can be easily changed and removed. This can result in errors and misunderstandings.
In addition , a company could become overly reliant on technology. This can result in a losing human proficiency and delay production.
The emergence on the digital economic system has led to a significant shift in how firms produce and market their products and providers. In contrast to traditional industries, which in turn rely on expense and labor resources for many and providers, an electronic digital economy performs with performance.
Hence, it is important to have a distinct vision of what the digitalization of a firm will include and put into action it intentionally.
The ramifications of digitalization on a firm’s value creation, proposition and capture had been investigated in two different industries, the media and automotive industry, using qualitative empirical data collected by 12 important informants. A conceptual establishing based upon dynamic capabilities was adopted to structure the empirical study (see Figure 1).