Digitalization implies using digital technologies to boost a company’s business operations, products and services. While there are many positive aspects to digitization, in addition, it poses a number of challenges.
Advantages of digitization
Digitization can improve a company’s internal procedures by eliminating manual tasks and reducing costs through www.cloudycrowd.net/2019/12/06/digitalization-of-a-business-and-its-consequences/ automation. Additionally , it can help a corporation gain clients or increase its existing customer base.
Down sides of digitization
A key disadvantage of digitization is the fact that digital information could be easily altered and deleted. This can cause errors and misunderstandings.
Additionally , a company can become overly reliant on technology. This can cause a lack of human know-how and decelerate production.
The emergence within the digital financial system has led to a fundamental shift in the way firms produce and market many and products and services. In contrast to classic industries, which will rely on expense and labor resources for their products and expertise, an electronic digital economy performs with effectiveness.
Hence, it is important to have a crystal clear vision by what the digitalization of a business will require and use it smartly.
The implications of digitalization on a firm’s value creation, proposition and capture had been investigated in two distinctive industries, the media and automotive industry, applying qualitative empirical data collected from 12 critical informants. A conceptual establishing based upon dynamic capabilities was followed to framework the scientific study (see Figure 1).