digitization

Everyone is talking about it. Internet technology is changing our business world. The basis is the conversion of analog values into digital formats. This is nothing new in itself and does not yet generate any added value. You speak of digitization when the business model changes and you integrate data in digitized processes and make it usable regardless of location and company.

The Internet – the driving force

Since the mid-1990s, Internet technology has become more established and widespread in the business world. At the beginning of this change was above all the cross-organizational exchange of files and e-mails as well as access to product and company information in the form of a homepage. When you talk about digitization today, it always means a change in one or more business models for a company.

This means that, for example, direct sales will now be handled via an online shop and no longer via brick-and-mortar retailers. Another development step came with the functional expansion of the smartphone. Apple laid the foundation for this change in 2007 with the iPhone. The next big push came with Web 2.0. That was the turbo for networking.

Digitization is driven by these niches

Mobility
Collaboration (new ways of working together)
Cloud associated with the communication
Increasing intelligence of end devices
New revenue and business models (e.g. with Big Data)

Although there is awareness in many companies, you can still find that many SMEs find it difficult to define a digitization strategy. In many cases, the topic of digitization is misjudged or underestimated because the focus is on the technical aspect. With digitization, niche edits for business models and others can be done right away.

Ultimately, the technology is just a tool and only has to do with the implementation. The perspective is therefore much broader.

The digitization strategy

Those were the days when the management could calmly concentrate on defining the strategy for the next 5 years. At that time people spoke of “structure follows strategy” today more of “structure follows technology”. Telecom companies, for example, became aware of this years ago when “Whatsapp” threw the profitable SMS business overboard within a short time.

This has shown that a successful business model can change within a very short time. For this reason, the management is obliged to review the strategy development on an ongoing basis. The reason for this is that the defined direction is crucial for the success of a company. Equally important is the constant review of the direction taken and the early detection of changes.

Digitization influences your working world, your leisure time activities and your consumer behavior. Nobody can escape this development. It is all the more important to be aware of the new technologies. Due to technology, you can get videos through online Youtube download.

Networked everyday life

Driving with a GPS, shopping on the Internet or cashless payments at the supermarket checkout: digitization has become an integral part of everyday lives. The change is particularly evident in the area of communication. A few years ago communication while out and about was not possible or only possible via the nearest telephone booth, today a short text message on the smartphone is sufficient.

More comfort and security

In fact, digitization makes lives easier in many areas – for example when the household robot takes over the annoying vacuuming, mopping or lawn mowing tasks, leaving more time for family and hobbies.

It is also time-saving to order consumer goods of all kinds conveniently over the Internet instead of rushing through the shops after work – even if there is no personal advice. The same applies to the option of printing out your ticket or concert ticket directly on your home computer or being able to check your account balance online at any time.

Human security also benefits from modern digital technologies. Nobody who has ever run into a critical situation while driving would want to do without Electronic Stability Control (ESP).

Further developments

Experts agree that the degree of digitization will continue to increase in all areas of life. This can already be felt to some extent. Driverless electric buses may still seem strange. But they should soon roll in more and more cities and municipalities.

Apartments and houses are also increasingly becoming smart homes, in which heating, windows and shutters can be controlled automatically or movements can be monitored with sensors and webcams on a smartphone.

Older people and people in need of care should particularly benefit from many developments. In a medical emergency, smart technical assistance systems such as motion and presence detectors or panic switches can inform the nursing staff or relatives. The aim is to enable sick people to live independently in their own four walls for as long as possible using modern technologies.

Internet Technology: Change In Business World