Approaches and concepts for digital change
The term "digitization" or "digital change" is a much discussed topic. Especially in industry, where people are increasingly replaced by machines, this fundamental change in the world of work raises socio-political issues.
Sociologists and economists therefore devote themselves to approaches and concepts that could promote social justice and social cohesion. About theories like that unconditional basic income is already agreed and the Six-hour day is no longer just a utopia, but in countries like Denmark is already a reality.
What does it mean, one Company to digitize?
When talking about digitization in a company, this means optimizing work steps and existing processes through the increased use of digital devices. Digitization is hoping many companies to do business faster and more efficiently.
In industry, for example, productivity can be increased through intelligent production processes. Existing working methods are either supplemented or even replaced by digital methods. Many areas that were previously man-made can now be taken over by machines or software programs. including:
- customer management
- warehouse logistics
- production processes
This is exactly what digitization looks like
Specifically, using the example of the accounting software Lexoffice, it is easy to illustrate how automation gradually replaces entire departments. The software does not only enable the automated creation of invoices, the tracking of cash receipts, the retention of receipts and at the end a quasi-finished tax return:
No, you can also link the accounting software to an online store like Woocommerce. Thanks to the WordPress plugin German Market eliminates the bogus for an online store billing. With the German Market extension, which simultaneously makes the online shop legally secure, PDF invoices as well as returns and cancellations can be created. With one click, these invoices can then be imported into Lexoffice and posted immediately. It almost does not get any easier - and you have time for other things.
Automation involves job loss
For all its advantages, this changeover must still be viewed critically. With employees replacing hardware and software programs that are cheaper, faster, and less prone to error, business owners should always ask themselves how they can train their employees in a timely manner.
Since it is also the policy of the heart to get jobs, creates the federal government economic policy framework and is committed to a targeted promotion of companies in order to make the digital transformation as socially responsible as possible.
Businesses need to use digital skills properly
In addition to computers and programs designed to help or ease people's work, it is crucial for small and medium-sized businesses to train their digital literacy staff. Proper handling of digital process extensions makes a significant contribution to the business.
Even with the best software, the desired results will be missed if used incorrectly. Only those who invest here will be able to compete in the long term. In order to position oneself for the future, new technical and digital methods must be established, but also applied correctly.
Advantages and disadvantages of digitization for companies
Digitization and automation brings a number of benefits to companies, but there are a number of disadvantages to consider. An overview:
7 Benefits of Digital Transformation for Enterprises:
- With a cloud solution, access to information and data is possible from anywhere
- Decreasing process costs through automation of business processes
- Faster and easier communication with colleagues, business partners and customers
- Better overview of data through digital management
- Compliance with all legal and operational requirements thanks to regular software updates
- Space-saving and thus cost-saving: costs for archive rooms, file folders and paper are eliminated
- Environmentally friendly due to lower paper requirements
7 Disadvantages of Digital Transformation for Business:
- High conversion costs, especially for long-term employees
- Holistic digitization is not possible because certain documents are only valid in paper form
- Information on paper is more visually appealing and easier to enter into visual memory than on the screen
- Digital solutions must always be updated and adapted to new developments
- While cloud solutions are practical, there are security risks from cyberattacks
- Dependence on electricity and fast Internet
- Risk of a system or network breakdown exists
7 steps: How does a company approach digitization?
What is the best way for a company to digitize? Before a changeover, the following points and questions should be clarified:
- Better to advance digitalization step by step rather than all at once
- Not all areas of a business can be digitized immediately, so you should work your way up department by department.
- First, a comprehensive analysis of existing business lines and processes should be carried out.
- Which processes should be digitized and what are the benefits?
- What are the requirements of this innovation for the company and employees?
- Which employees are affected by these measures?
- What are the costs of the conversion?
Conclusion: The most important thing about digitization summarized
In the long term, companies can not escape digitization if they want to remain competitive. Since the company's success largely depends on the employees, it is important to inform them in good time about planned changes. Whenever possible, companies should take action to get the workforce to work.
In addition, digital businesses must continually adapt to technical advances so as not to be left behind in competition. In order to keep up to date with the latest developments, regular training of company personnel is necessary.
In addition, specialists in IT security systems need to be hired to protect the most confidential corporate data from cybercrime. Further information on the opportunities and risks of digitization can be found here here.
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