In the era of digitalization all companies, manufacturing & non-manufacturing, need to think & operate like a software company. Companies that don’t integrate software technologies including artificial intelligence & machine learning, big data analytics, algorithms into their DNA, organizational structure & organization culture ~ will not be in business in the next 5-10 years. (Satya Nadella CEO Microsoft)
The acceptance of digital technology to transform services or businesses by replacing non-digital or manual processes with digital processes is known as Digital Transformation. Digital solutions can allow furthermore to efficiency via automation. It also permits new types of innovation and creativity, somewhat than simply enhancing and supporting traditional methods.
The concept of ‘going paperless’ or success a ‘digital business maturity is one feature of digital transformation. This is upsetting both individual businesses and whole sections of society, for example, government, mass communications, art, health care, and science.
Digital transformation is not happening at the same pace universally. Europe is now operating at 12% of its digital potential, while the United States is operating at 18% according to the Industry Digitization Index presented by McKinsey Global Institute in 2016. Germany operates at 10% of its digital potential within Europe, though the United Kingdom is nearly in similarity with the United States at 17%.
Cloud computing use is one example of digital transformation. This decreases dependence on user-owned hardware. It increases trust in subscription-based cloud services. Several of these digital solutions improve the abilities of traditional software products. This contribution model similarly decreases software piracy that is a main benefit to the vendor.
Digitalization of organizations
Digitalization is the business process of industrially-induced change inside industries, markets, organizations, and branches. The digitalization of manufacturing industries has assisted new production processes. They also enabled abundant of the phenomena today known as the IoT, Industrial Internet, and Industry 4.0, machine to machine communication, artificial intelligence, and machine visualization. Digitalization of organizations has encouraged new business models, new government services, electronic payment, office automation, and paperless office processes. They are being used technologies for example smartphones, web applications, cloud services, electronic identification, blockchain, smart contracts, and cryptocurrencies. They are also promoting business intelligence using Big Data. Digitalization of education has brought e-learning and MOOC courses.
Digitization has developed one of the greatest significant economic themes of the future. They are affecting not only the economy but society as a complete. The organizations may face the main challenge because of the ever-changing economic environment and changing digitization processes. Digitization may be defined as the change of signals and media objects like documents, images, or sounds into digital form. Those are treated, stored, and conveyed through digital devices and networks due to the adoption of digital technologies and the use of systems built on them. There are diverse levels of intensity concerning digitalization. Those are simple presentation and information, sales channel functions, and integration of business processes into new business models by virtual products or services.
The academic discussion surrounding digitalization has been termed as problematic. This is because no clear definition of the phenomena has been formerly developed. A joint delusion is that digitalization really means the usage of more IT. It is in order to allow and take advantage of digital technology and data. However, this early definition has mainly been replaced by the above definition.