What does the lack of digitalization cost for firms?

October 26, 2017

Sometimes it just feels like that starting from scratch would be easier than fixing the existing issues. However, starting from the beginning is not as simple as it seems, either. Often, a simple fix of the issues and update of the current processes can make wonders.

During the last 20 years, the world has changed faster than ever before. We live now in a digital world. Would you go to a travel agent to book your flights and hotel for your next trip? Can you imagine not being able to just send an email to a co-worker of yours that is located on the other part of the world?

I am sure you answered all questions with a capital “NO”.

When we think of digitalization, we often just think of its positive aspects of it, like how much easier life has become.

However, for some firms it’s been a blessing while for others a curse. Digital transformation is still a task to undertake for many and it is more difficult than many would think.

How does the lack of digitalization cost to companies?

1. They need additional employees

Due to inefficient processes, companies often need to hire more employees for handling simple tasks such as correcting data or answering customer requests with generic sample emails.

These tasks sound so simple to overcome. After implementing a few simple automated processes it should all roll on its own.

However, implementing the solution on top of the existing systems and processes is an overwhelming task for many. The fear of starting the digitalization of these processes often holds back companies and it costs them time and money. However, starting off digitalization with such minor tasks is the best way to test whether it would be worth to digitalize more solutions in the future.

2. They are slower to implement simple business processes

The lack of integration across processes slows down the implementation of the automated processes. Better, accurate, and automated business processes are the core of a business that wants to stay on the top. Business process automation helps companies to contain costs and become more productive. In addition to the time savings and becoming more efficient, it also enables a better quality and consistent service, as well as governance and reliability. By streamlining business processes companies eliminate unnecessary tasks and ensure that the information is shared across all the necessary stakeholders in real-time.

3. The lack of digitalization prevents innovation

Without constant innovation, it’s difficult to achieve development and success. Digitalizing processes can not only be helpful in new processes; however, it can be the engine of creating new innovations that strengthen the position of the company, allows them to differentiate themselves, and stand out.

lack of digitalization

4. Disruptors of the industry claim their market share

If companies fail to innovate and come up with services and products that the customers need, want, or prefer to use, they must fear that they would lose market share.

We have seen this happening in various sectors. New innovative startups are popping up and claiming their market share.

What are these new startups doing better that can overtake the market even from behemoth companies?

They understood that consumers are looking for processes that provide a good experience, the process is simpler, faster – and often it is all because of having digital processes in place with integrations and automated processes.

Integrations power digitalization

As said in the beginning, starting from scratch doesn’t need to be the only option to stay competitive in a digital world.
An iPaaS enables you to connect different systems, share data in real-time, automate processes, transform, translate, validate, and enrich all necessary data. Using integrations to become more digital eliminates the need for completely renewing legacy systems that many fear of. A simple, cost-effective solution that will set you up for kicking off your digital transformation journey.

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