Digitalization Unveiled: 3 Key Strategies you Need to Know

Most companies have realized by now that digitalization is key if they wish to stay competitive, increase operation efficiency and create new opportunities for revenue and value. But what does an effective digitalization actually look like?

Imagine two companies, both embarking on their digital transformation journeys at the dawn of the 21st century. Company DinoTech AG – an early adopter – invested heavily in IT infrastructure during the 1990s, building a robust technological base. Yet, as the digital landscape evolved, they found their systems isolated, unable to communicate with each other or adapt to new technologies, like AI to mention one.

On the other hand, company VisionBeyond GmbH took a more cautious approach, starting with automating a single process and gradually integrating other systems. Today, VisionBeyond thrives in a digital ecosystem that is interconnected, efficient, and responsive to change, while DinoTech struggles to keep up.

What insights can we gain from the experiences of DinoTech and Vision Beyond?

Digitalization is not only about the technology you use. It’s about how you seamlessly integrate it into your operations, adapt and grow with it, and empower the people who use it. The journey extends far beyond the initial technology investments!

Drawing from DinoTech´s challenges, and VisionBeyond´s successes, let´s delve into the important lessons that often go unnoticed in the digital transformation journey.

Three digitalization strategies you have probably underestimated or didn’t know:

1. The ’90s Wave: Digitalization´s First Steps

The journey of digital transformation began in earnest in the 1990s with significant investments in IT infrastructure. However, this was just the first step. Today, true digitalization requires systems that are not only in place but also seamlessly integrated and interoperable.

Many early adopters – like the DinoTech company in our tale – find their systems siloed, unable to effectively communicate with each other.

If you find yourself in such a situation, your next move is to explore further technology advancements. Your company requires a holistic view, long-lasting investments on innovative solutions that enable you to integrate your systems and processes across the organization.

2. Digitalization Best Practices: Start Small and Scale Up

As our COO Alexandra Höhne regularly reiterates, digitalization doesn’t consist in a massive, all-at-once, once-for-all overhaul. That is overwhelming, costly and complex.

Instead, the VisionBeyond’s success story here above exemplifies a more effective approach: start small and scale up.

By focusing on automating single processes or integrating key systems, you can make significant strides in your digital transformation journey. This gradual approach allows for adaptability and learning, making the digital transformation more manageable and sustainable.

3. Human Element in Digitalization: Key to Success

The human aspect of digitalization is often overlooked in the rush to adopt new technologies. How much time have you invested in coaching and aligning your team or hiring skilled workforce?

Successful and sustainable digital transformation involves managing organizational change, training employees, adapting the company culture, and developing new skill sets.

Investing in human capital ensures that the workforce is equipped to embrace and effectively use digital technologies, leading to higher employee engagement and better adoption of digital tools.

In conclusion, understanding these lesser-known aspects of digitalization can provide valuable insights for the success of your company´s digital transformation journey. Digitalization is not just about adopting new technology. It’s more about integrating it into the fabric of your business and society.

For those looking for an all-in-one AI software platform to aid in this journey, ValueMiner offers a comprehensive suite of tools tailored to support your digitalization efforts.

With us, you can transform your business digitally, making it more accessible and effective. Whether you are a DinoTech or a VisionBeyond, get in touch with us today.

Frequently Asked Questions (FAQ):

• How can digitalization impact your business?

Digitalization can significantly transform your business, as demonstrated by GKN Aerospace, a leading company in the high-tech industry. They faced challenges with the limitations and inefficiencies of using traditional spreadsheets for strategy deployment. Seeking a solution, they turned to digitalization for a more effective approach.

The major advantage of GKN Aerospace’s digitalization initiative was the integration of all relevant data into a single AI-based platform, moving away from the segmented and inconsistent information typical in spreadsheets.

This platform, provided by ValueMiner, offered a unified source of truth, presenting data along with its interdependencies in a clear and contextual manner. Such a comprehensive view ensures that all members of the organization access the same information, significantly enhancing collaboration and decision-making processes.

By adopting this digital solution, GKN Aerospace not only saved on potential misdirected project costs but also reduced the time spent on managing and reconciling data from multiple sources. This streamlined approach to data management led to more effective planning, resource optimization, and a collective stride towards improved performance and goal attainment.

In summary, digitalization can revolutionize the way your business plans and implements strategies, leading to more efficient processes, reduced redundancy, and clearer pathways to achieving your objectives.

GKN Aerospace’s experience illustrates the transformative potential of digitalization in enhancing business operations and strategic decision-making.

• How does Artificial Intelligence impact Digital Transformation and benefit businesses?

AI dramatically benefits business digital transformation, as seen in Healy World’s compliance management. case study. This global health device company faced challenges in managing a large distributor network. By implementing ValueMiner’s AI-powered software, they achieved:

1. Automated Document Processing: Faster and more accurate handling of compliance documents.
2. Efficient Violation Detection: Quick identification of distributor violations online, saving time and reducing errors.
3. Streamlined Risk Management: Automated risk assessments and clear decision-making processes.
4. Significant Efficiency Gains: Increased violation detection, reduced costs by 80%, and cut manual work by 70%.

• What does digitization mean?

Digitization transforms physical items into digital versions. For example, scanning paper documents to create digital files, such as PDFs, allows us to save and access information on computers.

This process breaks down information into simple bits of data, turning everything into a language of zeros and ones that computers understand. Digitization is essential for recording and sharing data, making it a key driver in today’s digital world.

PS: did you know that ValueMiner can generate reports or documents automatically at the push of a button from your digitized database?!

• What does digitalization mean?

As we clarified above, digitization is the process of turning physical materials or information into a digital format, but it doesn’t necessarily change how we utilize this data. This is a key difference from digitalization. Digitalization goes beyond just storing data digitally. It uses digital tools and the data obtained through digitization to enhance or innovate processes.

While digitization is mainly about changing the form of information, digitalization is about evolving and improving workflows. For instance, digitalization can involve analyzing customer data gathered from various digital platforms to automatically uncover new patterns in their behavior.

• What does digital transformation mean?

Digital transformation is the integration of digital technology into every area of a business, leading to significant changes in how the business functions and provides value to customers. More than just adopting new tech, it’s a comprehensive shift in company culture, structure, and operations. This process includes reevaluating existing business models and strategies to maximize digital technology benefits.

Digital transformation is not a one-time project but an ongoing journey of adapting to rapidly evolving digital technologies and market demands. It’s essential for businesses to remain competitive, innovative, and relevant in today’s digital age.