THE QUESTION OF What, Why, How, Where, Who, When TO DIGITALISED ?
WHAT IS DIGITALISATION ?
Digitalisation is the process by which organizations move from the typical analog to digital processes.
“In the digital age, economic activity results from billions of online connections. They involve not just people and organisations, but also data, devices, systems and processes. Its backbone is hyper-connectivity. It’s where the effects of technologies and platforms, give rise to whole new industries, creating significant massive shifts in productivity and jobs.”
The Star, 9 Nov 2019.
There is a difference between digitisation, digitalisation and digital transformation. Digitisation is the process of the conversion of text, pictures, or sound into a digital form that can be processed by a computer. Digitalisation is the process of leveraging digitisation to improve business processes and digital transformation is the impact caused by the process of digitalisation.
Digitalisation helps your organisation to gain competitive advantage by doing things better, faster and cheaper than tie competitors. Therefore it helps your organisation to reduce cost, increase speed and gives an international reach to your organisation.
Besides the above, some of the other benefits of digitalisation are:
1) ability to integrate the record systems
2) take advantage of analytics
3) accessibility to control, change and retrieve information throughout the organisation
4) increase response time
5) have better control in HR activities
6) better execution of implementation programs
HOW TO DIGITALISED ?
A proper digitalisation plan can help your organisation to reinvent processes, improve product and services quality, and give your organisation control thus improving consistency in product and service delivery.
WHERE TO DIGITALISED ?
However, many organisation ask this question “Where do I begin my digitalisation process?”
Management may consider to ask their In-house IT department to push for a digitalisation program but unless you have a full spectrum of IT professional running your organisation (which is seldom for SMEs or even large organisation and some government agencies), it is not efficient and cost effective to use this options. Too much effort and resources will have to be allocated to the IT department to create a robust enough platform to achieve the desired result which in fact these resources should be used for your primary role of revenue generation and business activities. The question of maintenance is another concern. Most importantly, cyber security is another major concern as outsourcing entities have 24 hrs constant robust cyber security surveillance which is crucial for digital business models.
WHO SHOULD DIGITALISED ?
With all the advantages of digitalisation, why are firms not digitalising? One important reason could be the question about “who” usually in an organisation, the CIOs are in charge of the “technological side of things”. Some may not fully understand the “business side of things” and therefore are unable to identify and recommend technologies that can provide competitive advantages or they are unable to communicate effectively to present to management in ways they understand these changes and benefits. Without these understanding, decision makers will not understand the benefits in terms of efficiency and cost savings, and therefore management will view these recommendations as “cost rather than benefits”.
WHEN TO DIGITALISED ?
In today’s world, you can see many organisation and even government in countries encouraging digitalisation. Digitalisation technologies are no longer optional to an organisation but necessities.
It is only a matter of time that organisation have to make that choice and the sooner the better. For CIOs and CEOs, it is a time to understand this paradigm shift and should understand the fact that those who do not change will be replace and their organisation disappear into redundancy. Organisations have to digitalised to not just for competitive advantages but to survive. Therefore the question when to digitalised is *NOW! *
For more on Digitalisation, you can call/email APF Management Sdn Bhd at email@example.com for consultation.