Digitization: An Urgent Need for Today’s Enterprise
Posted on:12 December 2019 by Amreen Khan
Every Business needs Digitization: to Increase Efficiency, Accuracy, Speed and Quality; to Decrease Costs, Wastage and Turn-around Time.
Well, the word comes from binary digits, or bits – 0 and 1 that form the basis of storage of data in electronic format. But it doesn’t stop at that – in fact it hasn’t stopped evolving ever since its conception. In modern terms, it refers to a systematic and structured approach in which data is stored electronically as records or transactions and retrieved in ways that are needed for action or to compute meaningful information (like reports and analytics) to base decisions on.
However, there is much more to Digitization than the basic meaning. Digitization today not only means Digitization of Records, it also means Digitization of Workflows, Digitization of Scrutiny by look-up and cross-referencing of base data and Digitization of Actions and Decisions.
How does Digitization bring Efficiency?
For one thing, digitized transactions take a lot less time to carry out, like you must have seen the amazing speed with which billing is completed in minutes when you check out your purchases at a supermarket. Again, a lot of matters like work-flows can also ensure a higher degree of accuracy and efficiency in digital transactions – like once someone makes a record (like a purchase requisition) it stays as a ‘draft’ so it can be verified by another person and be approved by an authority before it can become ‘actionable’.
The verification of transactions can be done in the backdrop of other electronic records stored in the system, such as budget available, inventory available or orders to be fulfilled. Also, these ‘electronic documents’ need not be physically moved from one desk to another like in case of paper documents – sometimes even across different geographical locations – the time taken for such intermediate stages from proposal to approval stands greatly reduced.
Access to meaningful information can form the basis of a lot of business-critical decisions. Like the data from last three months’ invoices raised can tell you the average off-take of a product in the quarter, which product sold more than others and in the backdrop of last year’s same quarter, what is the revenue increase, etc.
What’s more, you may also rely on Digitization for timely alerts like re-order levels reached, remaining budget, reaching the time threshold of a planned event, etc and automated action like a system-maintained schedule calendar for machine calibration or repetitive transactions like payment of rent or insurance.
I hear Digitization often. But where is it?
Look around you and you find most paper dealings have become digital, like emails have replaced paper letters, electronic fund-transfers have replaced bank cheques, and product information is shared through slide-shows and pdf brochures and even drawings are shared as image files.
Then there are other things happening… with more and more shopping done on-line, product-demo-on-demand videos are put up for self-service along with automated chat-attendants on web-sites available to resolve your queries, the market never sleeps and is ever-ready to attend clients any part of the day, any day of the week, all the year round – it is ‘highly available’. Banking is the most visible example of digitization today for the lay person.
Interesting. But is it not too early for MY business, NOW?
Everyone wants to achieve lean operations, just-in-time inventory, prim-and-planned production, available-to-stock and available-to-promise finished goods at the most efficient pace and price. Everyone’s affected – electrical goods, industrial goods, pharma, chemicals, manufacturing, energy, apparel and lifestyle goods, food and beverages, consumer and industrial electronics, services, B2C, B2B – nobody’s left. It is not just consumer goods industry that is waking up to the digital call… And not just those who’re reaching out to end-customers through on-line shopping portals.
In this age of a 24×7 marketplace, it is up to today’s entrepreneurs as to how much they want to speed up their response time, their logistics and production turn-around times to make most of the growing opportunities.
To become market leaders, entrepreneurs need to identify aspects of your business where you can bring about a greater degree of efficiency in operations with economy and speed, in line with their vision and forward-looking aspirations. Taking the right step now will go a long way to ascertain your position in the industry tomorrow.
The future of business belongs to those who maximize their potentials today and prepare for the all-digital tomorrow. The best run enterprises have organized for their operations to be Easier, Safer, Faster. Is your business ready to do this?
Watch out for more articles from us, on solutions available to digitize your business in the most economical and efficient manner.
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