Advantages And Disadvantages Of Digitization For Companies

Digitization now has a firm grip on us. Whether privately or at work – all relevant data is digitally recorded, processed and passed on. This development offers great opportunities for companies in particular. But like so many far-reaching developments, digitization brings not only advantages but also risks. Still, most companies agree: the benefits outweigh the benefits.

Internal And External Communication In Companies Today

Whereas in the past potential customers or business partners had to be tediously called, or direct marketing was even implemented via letter and Co., communication works today with just the push of a button. But not only the area of ​​marketing and external communication but also internal communication in companies is significantly affected by this. Even in terms of staff, there are opportunities today that were unthinkable just a few years ago. Thanks to fast connections and new technologies for everyone, virtual meetings can be held, and the employee philosophy is constantly changing. Colleagues can work together even if they are currently at different locations. Communication really couldn’t be more straightforward – thanks to digitization.

Start-Ups Benefit In Particular

Digitization is almost always good for very young companies that have not yet fully established themselves on the market. Suppose you want to get an overview of the new opportunities for young entrepreneurs. Explains in an obvious way which concrete advantages can be used through digitization to grow in the long term. More and more young companies start very small and use unique methods to assert themselves against large companies despite all adversities. But only those who know these tools very well can use them accordingly.

Win Customers Faster And Retain Them In The Long Term

Both large and small companies benefit from increasing digitization, especially about the acquisition of valuable new customers. The needs of customers are constantly changing because new offers seem to be within reach all the time. Those who react quickly to these changes can get the attention they want for their company or individual products. That is precisely what digitization makes possible. Finally, specific vital figures can be read out and analyzed within seconds, and marketing and production areas can be quickly aligned with the new findings. Through digital communication, the relationship with the customer can also be designed promptly and particularly up-to-date – this makes customers feel more connected to a company.

More Efficiency Through Digitization

Working quickly and efficiently has always been essential to use valuable resources as economically as possible. In the age of digitization, this works more accessible than ever. The documents can be stored in a central location and accessed immediately, depending on the urgency. Unnecessary searches are a thing of the past, as long as the systems, metadata and databases are always maintained. All employees can access data from the same or different sources according to their individually assigned rights.

In addition, essential knowledge can be obtained in e-mails or internal messages via the intranet shared within a few moments. Chats and video conferences ensure that even more valuable time can be saved, which is better used elsewhere. The electronic processing of invoices can also be made much more efficient in practice by storing all invoices and customer data and the data of the suppliers or partners in a central location. This not only makes the work particularly time-saving but also makes it far less prone to errors that cost money.

Make Important Decisions Much More Accessible

Without digitization, it would be much more difficult for many executives to make certain decisions. Since the critical data from different areas of a company can now be found quickly and just as easily evaluated, decision-makers can get an overview of the meaningful data more quickly. By requesting the relevant documents and having diagrams etc., created with various software, decisions can no longer be made in the dark but based on accurate data. This benefits everyone involved; after all, individual employees can also use concrete, digitized data to underpin their views or point out possible future wrong decisions.

Less Direct Interaction Due To Dependency On Smartphones And The Like

Of course, the direct social interaction between colleagues and employees suffers if only e-mails and chats are used all the time. Direct contact is essential within a team and also with partners and customers. For this reason, a possible disadvantage of digitization is that more and more companies are losing sight of direct interaction. Communication becomes more impersonal, and dissatisfaction or disagreement is overlooked more quickly. As a result, for example, the employees may terminate their contracts, which could have been avoided with personal communication between the two partners. It is also essential to customers not only to show the constant presence virtually. Companies can get in personal contact at trade fairs, for example.

Risks Are Minimal But Not To Be Underestimated

One thing is sure: if the data is available online or at least on internal computers at any time, digitization also entails certain risks. The more content is digitally available, the more attractive it becomes for intruders to gain unlawful access to this data. Therefore, security measures are essential to be able to use all the advantages of digitization but still not offer too much target.

In this context, technical progress has another disadvantage: it costs additional money. If you want to stay up to date with the topic of security, in addition to the appropriate software, you need an employee who deals specifically with this topic. On the other hand, if the company is tiny and cannot afford a security officer, external consultants can be considered. These also cost money. Alternatively, a freelancer can be used. However, neither small nor large companies should avoid the financial and time expenditure because security measures are at least as necessary today as the efficient management and evaluation of digital data.

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