Digitalisation - The future is now

What is Digitalisation?

Digitalisation stands for the change from analogue to digital, data-driven business processes and new business models. The word transformation describes the holistic change in a company that is needed to successfully and sustainably position a digital strategy. Collecting and analysing data helps to derive optimisations and make processes more efficient. Processes are coordinated with each other in order to conserve resources and reduce costs. Data is available digitally and from any device at any time. This enables real-time evaluations, which can be used to react to changes at any time. Data can be made digitally accessible to all employees as needed, which can significantly streamline internal communication. 

For a successful transformation, an analysis, a resulting strategy and a roadmap for implementation are essential, as well as the further training and qualification of employees. A digital transformation always affects the entire company and can fundamentally change the corporate culture.

What benefits does a digital transformation promise?

• Increasing efficiency: By using digital systems and processes, business processes can be automated and optimised at the same time. This approach then optimally results in increased efficiency and productivity.
• Cost savings: Costs can be saved by eliminating manual processes and using digital technologies. Furthermore, digitalisation can help to save resources such as paper, which can also contribute to cost reductions.
• Improved customer relations: CRM systems, for example, can help to better understand and serve the customer. By using digital tools and platforms, offers can be better personalised, which can have a positive impact on customer loyalty.
• New business opportunities: Digitalisation creates new markets and business opportunities for companies. Products and services offered online can now be addressed to a larger customer base.
• Improved collaboration: Through the use of digital tools and platforms, employees are connected with each other and efficient collaboration takes place within the company. At the same time, communication channels become faster and improved.

What are the necessary steps?

1. Analysis

For every change and every corporate transformation, it is important to understand where the company currently stands. Which technologies are already being used, where are there already automations today. What interfaces exist between individual departments. An analysis thus describes the status quo of the current circumstances and shows current strengths and weaknesses, but also risks and opportunities.

2. Strategy

A digital transformation offers many opportunities to position one's own company in the market for long-term and sustainable success. This requires a strategy and clear corporate goals. Which business models seem suitable. Who is your target group and how do you want to satisfy their needs? With the help of the strategic orientation, the first steps for implementation can then be planned. In addition, a strategy ensures that the focus is not lost from sight and that defined KPIs are checked at regular intervals.

3. Implementation

Based on the analysis and strategy, the implementation is now planned. Here, a so-called MVP - Minimum Viable Product - is suitable for a first test. This prototype provides first, quick insights into the target group and the market. Depending on the results, adjustments can then be made directly before the product is made available to the broad market. Once a promising offer has been found and tested, the digital business model is scaled up to generate the first revenues as quickly as possible.

4. Qualification

A digital transformation can be as good as it is in theory if those involved are not trained and empowered. This includes clear and open communication about the benefits and opportunities of change. Once the employees are on board, it's a matter of qualification. Education and training can teach the proper and efficient use of new technologies and tools. In this way, each individual is empowered to proactively shape the digital transformation.

What makes for successful digitalisation?

The success of a digital transformation has now become a survival factor for many companies.

The basis for the success of digital business models (e.g. Uber, Airbnb, Flixbus) was in all cases the use of state-of-the-art IT technology and the simplicity of making these services available to everyone.

Bit by bit, digitalisation is taking hold in almost all industries. What all sectors have in common is that the speed of transformation is significantly higher than most of those responsible had estimated. In many cases, it is higher than the ability of companies and organisations to adapt to new requirements. The challenge is usually not the technique or technology used, but more important is the business model behind it.

What does this mean for companies in a competitive environment?
The classic competition between products or companies is increasingly being replaced by competition between business models.

Independent and empirical studies show that companies that have started the digital transformation along the customer journey are more successful. Focusing on the customer is one of the keys to improving competitiveness.