The impact of digital technology on business

Introduction:

Digital innovation has opened up new business opportunities, improved operational efficiency and transformed entire industries.Digitalization emphasizes the importance of putting technology at the center of all processes, products and services and encompasses changes in companies and industries through the use of digital technologies. Digital transformation characterizes the integration of technology across all areas of a company, which will bring changes to the way they operate and how they deliver value to customers.

Technology offers several positive aspects:

1: Improving operational efficiency:

The most obvious advantage of digital is that it has allowed companies to automate manual processes, improving operational efficiency. It refers to both office activities, as well as management and control of the warehouse and many other business functions. Automations speed up times, reduce costs, increasing the value and quality of the service or product offered.

2 Transforming business models:

Digital technology has given rise to new business models and transformed existing ones. For example, e-commerce has allowed businesses to reach customers around the world without the need for physical presence. The introduction of digital platforms has helped the sharing of resources and collaboration between different companies, creating new opportunities for partnership and co-creation. The figures involved in this phase are at least three: the corporate stakeholders, who have the vision on the company’s strategy, a system integrator that can propose the right technology and a "transformation enabler" that offers support.

3 Expansion of marketing and communication opportunities:

Digital technology has expanded the possibilities of marketing and communication for businesses. Social media, for example, offers promotional platforms that are accessible to a global audience. Businesses can use digital marketing tools such as online advertising, email marketing, and content marketing to achieve the goal a digitization policy strategy is required. The first departments to be digitized must therefore be marketing and sales.Data show that 80% of Italian companies are not equipped with an e-commerce or an online customer engagement system.

4 negative aspects:

A negative aspect of digitalization concerns the lower value given to human workers, in fact the machines automating the processes allow the employer to reduce the staff.Another disadvantage of technological advances is the dependence that computers and other forms of technology give to people.

In my opinion, companies that use technology in the corporate environment have a great advantage, as they speed up time, reduce operating costs, improve security and customer experience. However, care must be taken to comply with privacy regulations, storage on the server may no longer be an adequate solution. So a mix of digital platforms is needed.

Edoardo pezzolato

01/06/2023

3Fsia

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