Digitization

Definition

Digitalization is the process of converting analog information into digital formats and integrating digital technologies into all areas of a company. The aim is to optimize business processes, increase efficiency and tap into new value creation potential.

Background

Originally dating back to the computerization of data and processes in the 1980s, the term digitalization has expanded and today includes comprehensive networking and automation in industry and society. Progressive digitization is often referred to as the fourth industrial revolution or “Industry 4.0.”

Areas of application

Digitalization is used in almost all areas of the company, including production, management, logistics, marketing and customer service. In industry, it enables, among other things, the implementation of B2B dealer portals, which enable digitized ordering processes and customer management.

Benefits

The benefits of digitization are manifold and include improved efficiency through automation, increased transparency through data analysis, better customer loyalty through digitized services, and opening up new markets through digital business models.

Challenges

Digitalization challenges include high initial investment in technology and training, data protection and data security, and the need to constantly adapt to technological changes. Solutions include strategic planning, ongoing employee qualification and investments in security technology.

Examples

One example of digitization in industry is the introduction of a self-service-portal, which allows customers to order spare parts or make service inquiries digitally, without direct contact with a sales representative.

Summary

Digitalization is a key process for modern industrial companies that helps innovate business models and optimize operational processes. By using digital technologies, companies can improve their market position and respond effectively to changes in the business environment.