In the fast-paced world of business, even tech-savvy companies can benefit from an external perspective on their internal processes and the technology that supports them. Enter digitalization, a key driver of competitiveness that holds the potential to propel your company toward significant gains in efficiency and productivity.
Decoding Digitalization:
If you’re not quite sure what “digitalization” means, think of it as leveraging digital tools – apps, software, and the like – to streamline daily operations across various facets of your business, from operations and finances to customer service and marketing. Break down the work your team does into tasks, and the way those tasks are executed forms a workflow. Digitalization is the seamless integration of this workflow, the technology (tools) facilitating it, and the technical expertise that bridges the two.
Let’s illustrate this with an example from an ecommerce business – the straightforward sale of a product on your website. Viewed through a digitalization lens, this single event involves multiple steps and technology interactions:
- Checkout event occurs (involves your website and a payment gateway).
- The sale reflects in your dashboard (involves your website and an alert email).
- Parcel preparation for posting (involves a generated shipping label).
- Invoice sent to the customer (involves billing/accounting software).
- Customer notification (involves an email and a parcel-tracking website).
- Removal of the sold item from your stock (involves inventory tracking software).
At each step, different digital tools come into play, and data (customer details, product information, etc.) moves between these tools. In a suboptimal system, manual data entry might be required at nearly every stage. In a well-optimized system, data flows seamlessly from one tool to the next. Achieving this requires the right mix of tools and a well-thought-out process (workflow + tool + skill).
In a finely tuned system, handling a sale could take only a fraction of the time, potentially leading to reduced staffing needs, increased sales volume, and heightened customer satisfaction – ultimately resulting in a more profitable business. If this prospect intrigues you, it’s worth noting that there are government supports available to assist your company on its digitalization journey, which we explore below.
The business landscape is evolving rapidly, with technology playing an increasingly integral role – from hardware to software. The era of paper-based businesses is dwindling, making way for the dominance of cloud technology across businesses of all types and sizes. A recent report by Thales sheds light on the extent to which European companies have embraced technology:
SaaS Adoption:
- 38% of respondents utilize 26-50 SaaS products.
- 28% of businesses go beyond, using more than 50 SaaS products.
PaaS Integration:
- 42.9% of respondents engage with 2 PaaS providers.
- 23% of businesses opt for 3 PaaS providers.
Key Management Products:
- 40% of organizations rely on 5-7 separate key management products.
- 15% of companies take it a step further, employing 8-10 key management products. This encompasses a mix of key management software, hardware security modules, homegrown solutions, and spreadsheets or flat files.
Cloud Service Providers:
- 54% of respondents choose AWS (Amazon Web Services).
- 39% of businesses prefer Microsoft Azure, aligning closely with global averages.
These statistics highlight the widespread adoption of digitalization tools and platforms, showcasing the tech-savviness of businesses in the European Union.
The advantages of digitalization are widely acknowledged, spanning improved operational efficiency, the ability to meet customer expectations, enhanced new product quality, increased design reuse, reduced product development costs, the creation of new revenue streams, and the overall de-risking of your business. Embracing digitalization is not just a trend but a strategic move toward a more agile, efficient, and competitive future.
The rapid pace of digital adoption, especially during the pandemic, has underscored the resilience of digitally enabled companies in the face of external shocks. According to a McKinsey study in 2020, organizations adept at leveraging technology showcased higher adaptability during the crisis. Key findings revealed that 75% had the capability to fill tech jobs, 67% were technologically advanced compared to peers pre-crisis, and 56% were pioneers in experimenting with digital technologies amid the crisis.
Past performance is no longer a reliable indicator of future potential. The International Monetary Fund predicts that 65% of the world’s GDP will be digitized in 2022, with global spending on services and technologies supporting digital transformation estimated to reach $2.3 trillion by 2023 (IDC, 2020). Failing to invest in digital transformation could render your business less efficient, less agile, and less profitable in comparison to competitors who embrace this evolution.
Government Support for Digital Transformation
Recognizing the pivotal role of digital transformation, the government offers two notable supports for companies looking to embark on or optimize their digital journey:
Enterprise Ireland: Digitalisation Voucher
- Provides €9,000 to collaborate with third-party consultants, developing a digital adaption plan based on identified needs.
- Targets areas such as reviewing operational processes, enhancing digital customer experiences, and optimizing key performance data.
- Open to Enterprise Ireland clients with 10 or more employees or non-clients in the manufacturing or internationally traded service sectors with 10 or more full-time staff.
Local Enterprise Office (LEO): Lean for Micro – Management Development Programme
- Designed for smaller businesses ineligible for the Enterprise Ireland voucher.
- A comprehensive program worth €3,500, requiring a €250 business participation fee.
- Includes training, mentoring, and support visits over a 16-week period, focusing on Lean methodology for business optimization.
To express interest in the Lean for Micro programme, visit https://leanformicro.ie/register
Initiating Your Digitalization Plan Even businesses considering themselves digitalized often have areas that can be further optimized. Leveraging supports like Enterprise Ireland’s Digitalisation Voucher can unearth opportunities with significant return on investment.
Scaling a business is challenging, and strategic decisions, particularly in technology adoption, play a crucial role.
Digitalization requires a proactive approach with a well-structured plan, realistic investment, and organization-wide buy-in. For those navigating this important area, seeking expert assistance is advisable, especially with current government funding opportunities to alleviate the costs associated.
If you would like to hear more about how CozmoTec can help you to digitalize your business processes and workflows, get in touch with our team today by emailing sean@cozmotec.ie or by scheduling a call around your availability here.
