The entire world is going through a digitalization process. Businesses everywhere are moving their operations to a digital environment, adopting new technologies designed to help improve business processes.

Digitalization is an essential tool for growing businesses and increasing revenues. It involves the adoption of technologies that promote automation to improve existing processes. Once you move an operation online, you get access to more data that can help improve business processes even further. Let’s look at the role of digitalization in business growth and why it’s the only way to prepare for the future.

Digitalization Explained

In short, digitalization is the process of adopting digital technologies to improve an existing business model. The goal of every digitalization is to drive value and increase revenues. Digitalization has a direct impact on all business activities and is only possible due to fast-evolving digital technologies. It offers all kinds of benefits that help companies get an edge over their competitors.

That includes practices such as automating marketing efforts, order processing, providing customer support, etc. When these technologies work together, they can improve operational efficiency, reduce human errors and costs, and improve productivity. 

The entire process relies on advanced technologies designed to help businesses transition from an analog to a digital environment. All generated data is stored on the cloud, removing the need for physical data silos and warehouses. Cloud computing is the next big thing in business practices because it helps improve team communication, performance, and efficiency. 

Undeniable Benefits Of Business Digitalization

In short, digitalization offers new technologies that help improve existing business practices. Let’s look at some of the benefits it provides and its impact on business operations.

1. Improved Customer Experience

Providing your customers with an exceptional user experience will help you grow your business on solid grounds. Once you move an operation online, you will get access to massive amounts of customer behavior data. You will be able to see what products they want to buy, what content engages them most, and many other similar details.

The key here is to create an online user experience that makes it easy for customers to find and purchase the products they need. They don’t want to go through the hassle of going to a store and buying the product themselves. Instead, most customers want to click a few times and have the product delivered directly to their doorstep. 

In short, digitalization allows you to create an environment according to your customers’ expectations. That will lead to higher customer satisfaction, and you will get access to a global market.

2. Human Error Reduction

Traditionally speaking, businesses lose a lot of money due to human errors. Whether it’s during production or customer support, human errors have a negative effect on sales and overall customer satisfaction. Once you adopt these new digital technologies, you can use automation to reduce human errors and operational costs. 

That will help you streamline workflows and increase employee efficiency. Moreover, many business processes will become much easier to manage, allowing you to get more work done much faster. Industries such as mining, manufacturing, healthcare, and others are already using advanced software to increase efficiency and streamline operations. For example, the Wizata manufacturing software helped dozens of companies improve processes with a completely digital AI solution. 

3. Access to Advanced Data Analytics

Data is the currency of the 21st century, and when you move your operation online, you get access to a ton of valuable information. More importantly, all generated data will be stored on secure cloud servers, so you won’t have to worry about hackers and cybercriminals.

However, the real value of data becomes evident over time. Once an AI reviews all incoming data, it will help you find better solutions that will go a long way in helping you build a more prominent online presence in the future. There is a lot you can learn from user-generated data. It can not only help improve your offer, but it can also improve your product design efforts, communication channels, and many other business processes. 

4. Drive for Innovation

The global digitalization of operations has already resulted in various technological innovations that help improve the user experience. It’s safe to say that these technologies will improve in the future and lead to innovations that help increase sales and profits. It’s simple – new technologies lead to new trends, and new business opportunities.

Digitalization offers unprecedented options for business growth. Think of the benefits banks got from mobile banking. Users can now transfer money, pay for services, and manage their savings using a secure mobile app. Banks can provide their services to many more users at once, which results in increased revenues and higher ROI. Digitalization is a process of increasing customer convenience to improve sales, and it’s doing an awesome job so far.

5. Increased Reach

The online world opens doors to countless platforms you can use to attract a wider audience. Websites such as Facebook, Instagram, LinkedIn, and many others can help you find new customers through paid promotions. A simple marketing strategy can help increase your sales multiple times, as most consumers read reviews and comments about a brand or product before actually purchasing something.

An established online presence has a direct impact on business processes. It takes a little bit of effort, but as long as you utilize new technologies to improve communication and convenience, your sales will skyrocket overnight. 

6. Multiple Communication Channels

The implementation of digital technologies provides companies access to multiple communication channels they can use to reach out to potential customers. Digitalized businesses can communicate with customers through emails, mobile apps, social media platforms, and other communication channels. 

That opens up the way for the so-called omnichannel strategy that helps increase reach, sales, and customer loyalty. Of course, access to more communication channels requires a new approach to business strategies. Even though you’ll get access to many more consumers, you should always focus on quality rather than quantity. 

Having a dozen poorly designed sales channels will probably do more damage than good in the long run. However, one of two well-designed channels that use automation to improve sales will increase revenues more than you think. You will have more responsibilities, but the reward is worth the effort.

The Difference Between Digitalization and Digital Transformation

People use the terms digitalization and digital transformation interchangeably. However, even if they sound similar, these two terms define completely different practices. 

Digitalization is the process of moving information from traditional, analog systems to a digital format. It describes the process of using digital technologies and digital data to drive value, and find new business opportunities. It also defines the new, modern way companies use to communicate with customers and each other.

Digital transformation is a wider term used to define how digital technologies impact culture. It focuses more on the effects of modern technologies on human behavior in a new digital environment. While digitalization is all about data and technology, digital transformation focuses on its effect on corporate culture and human interaction with new technologies.


The process of digitalization has been going on for years. However, the recent pandemic showed the increasing need for advanced digital tools designed to help connect businesses with consumers without physical contact.

It turns out that digitalization provides many other business benefits that work together to help companies streamline their operations and grow in this new technological environment. It’s the way of the future, and the sooner you adopt digital technologies, the faster you will be able to grow your company.

Rick Seidl

Rick Seidl is a digital marketing specialist with a bachelor’s degree in Digital Media and Communications, based in Portland, Oregon. With a burning passion for digital marketing, social media, small business development and establishing its presence in a digital world, currently quenching his thirst through writing about digital marketing and business strategies for DigitalStrategyOne.