Digitalisation: The future of IT for business Digitalisation is the key to more effective and efficient business operations, and it can help companies’ access new customers and markets.

It’s easy to get caught up in new industry and market buzzwords. We’ve all seen the emergence of terms like cloud computing, the Internet of Things, and of course, digitalisation. While many of these can bring your organisation tangible improvements, digitalisation underpins pretty much everything, and is one of the most powerful and accessible.

Digitalisation is about more than just replicating paper-based documents and files in a digital environment; it can optimise processes to increase revenue while simultaneously reducing costs. It’s also invaluable as a way of improving business continuity and promoting staff flexibility.

In this paper, we’ll explore what digitalisation is, how it differs from digitisation, what it can do for businesses and why it’s important to implement it with an experienced and skilled partner.

Digitalisation is more than the future, it’s the right now; and it’s time to consider the approach.

Understanding digitalisation: what is it?

Before delving into the details of what digitalisation can do for business, it’s important to understand what the term means, and the difference between digitalisation and digitisation. Gartner defines digitalisation as “the use of digital technologies to change a business model and provide new revenue and value-producing opportunities; it is the process of moving to a digital business”. In another release, the firm explained it as an “emerging business model that includes the extension and support of electronic channels, content and transactions”.

To summarise, digitalisation means taking paper-based documents, records and processes, and transforming them into digital formats. These are more effective, secure and smart than traditional manual processes. Through digitalisation, business can also increase the value of their data and drive down costs.

So, there are a clear benefits to undertaking digitalisation, but how many businesses are actually proceeding with the trend? Let’s take a look at the insurance industry. A Gartner study found that digitalisation (along with mobile apps) accounted for a third of the publicly announced IT initiatives of the world’s 25 biggest insurers. That was in 2014, and it’s telling of the usefulness of the trend.

Before going into the business benefits, there’s one other point that needs to be clarified, something that can be easily confused: the difference between digitalisation and digitisation. These two terms are often used interchangeably, but it’s important to note they mean two different things.

While digitalisation can transform businesses, helping to unlock the value of data through application, digitisation is merely the process of converting items into a digital format (whether this is documents or manual processes). Businesses need to go beyond simply converting analogue information into a digital alternative; they need to transform data and traditional processes.

What can digitalisation do for your business?It’s time to take a closer look at digitalisation and explore what it can do for a business on the transformation journey. Whilst transforming analogue documents and processes into digital equivalents is the core of the term, when broken down there are a number of tangible benefits for the business. Here are four top benefits for businesses who embrace digitalisation:

1) Optimise for digital

Digital business is here; there’s no getting around the fact. Digitalisation allows companies to do more than simply replicate analogue processes online, however, it means optimising these dated processes in order to increase revenue and make them more capable.

For example, transforming an analogue process may involve adding workflow while simultaneously reducing the need for handling, and enabling further mobile interactions. It boils down to simply adding capability and simplicity.

2) Reduce costs

At a basic level, digitalisation can significantly reduce costs. This is most noticeable when transforming paper-based documents and processes, as there’s no longer a need to manage the security, storage and eventual archival of physical documents. All information is stored in a secure digital system. Even if you still have to save and store the hard copy documentation, the benefits

you will gain from being able to audit and track your information in an automated way are tangible.

This is noticeable when it comes to staff time, as workers will be freed to tackle other tasks, whether that’s time saved when processing documents or simply retrieving the right information. After all, everyone understands the pain of trawling through file cabinets. Having information in a digital format means that the information is only a click away.

3) Promote staff flexibility

It’s an open secret that, for many organisations, business processes are still stuck in the dark ages. This can have a significant impact on how staff get work done. Document archival is one prominent example, as companies rely on massive file cabinets to lock away older information. In another example, companies may rely on physical phones and desktops day to day, all of which needs to be optimised as much as possible.

With digitalisation, these processes are transformed into modern, capable equivalents. Documents are no longer restricted to a heavy file cabinet, but stored in an easily accessible system (from any device) and staff can work from anywhere with laptops and smart phones safely integrated into your infrastructure.

4) Improve continuity

Finally, digitalisation is a powerful way of ensuring business continuity. It’s easy to see how analogue processes are at risk of being compromised, when there is no back up in place and security is rarely a consideration. Once again, digitalisation means taking these older processes and transforming them into smarter digital equivalents. In that case, security and continuity are far easier to manage.

These are just four of the stand out benefits of digitalisation, and there are numerous others. In most cases, these are universal improvements that

companies can gain access to.

Now it’s time to look ahead.

Beginning the transformation

Digitalisation is no longer an experimental approach that businesses are toying with, it’s a powerful way of transforming business operations, driving down costs and unlocking the value of data. It’s also an accessible trend; this isn’t something only the largest enterprises can access, it actually helps more organisations to scale and compete.

While “going digital” can seem daunting, especially as digitalisation will impact every area of the business, action now is necessary in order to avoid being overtaken by competitors. As more and more businesses start to realise the value of the process, and begin the transforming, other companies will be left struggling to catch up.

Nigel Fenwick, Forrester research vice president, explained at the CMO-CIO Customer Experience Breakfast that organisations failing to make the digital transition will either be acquired by firms that have already done so, or go out of business. It’s a sobering thought and highlights the need to act sooner rather than later. Digitalisation with an expert providerIn conclusion, it is now time to start thinking seriously about digitalisation, especially given the significant opportunities this presents for organisations. Of course, many businesses will be stuck, figuring out exactly how to jump start the process. This is where a trusted third party comes into play, a provider that can handle the initial consultation to figure out how the transformation will be undertaken and subsequently manage the process.

Fuji Xerox Australia is one such provider, and can carry out the transformation for companies small or large. Digitalisation is here, the opportunities can’t be ignored. Speak to Fuji Xerox today to find out how to bring your business into the 21st century.

About Fuji Xerox Australia

For schools that require a partner when it comes to multichannel communications, Fuji Xerox Australia is the answer.

We’re a leading provider of numerous solutions for businesses and education institutions throughout Australia, with a key focus on leading communications solutions. With a multichannel solution from Fuji Xerox Australia, schools can ramp up attraction and enrolment, raise revenue from additional sources such as fundraising and ensure that all communication is in support of the school brand.

Communication doesn’t have to be difficult, and with the right initiatives it can be used to fully support schools at all levels.

Xerox, Xerox and Design, as well as Fuji Xerox and Design are registered trademarks or trademarks of Xerox Corporation in Japan and/or other countries.

Sources

http://www.gartner.com/it-glossary/digitalization

http://www.gartner.com/newsroom/id/2649419

https://www.gartner.com/doc/3022022?srcId=1-2819006590&pcp=itg

http://www.records.nsw.gov.au/recordkeeping/advice/digitisation/benefits-of-digitisation

To find out more about our range of IT Services & Enterprise Software contact us on 13 14 12 or visit our website www.fujixerox.com.au/solutions/itservices