Digitalization

Digitalization: definition and challenges

Digitalization refers to the integration of digital technologies into business processes to improve efficiency, flexibility and accessibility. It's not just about digitizing documents, but using the potential of digital technologies (cloud, IoT, artificial intelligence, big data, etc.) to transform and optimize operations, communication and business models.

What is digitalization?

Digitization means adapting business processes to new digital technologies. This includes the use of software and digital tools to automate processes, improve data collection and analysis, and simplify collaboration between teams and departments. Unlike digitization, which concerns only the conversion of analog information into digital format (such as the digitization of paper documents), digitalization profoundly transforms an organization's operating models.

Why is digitalization crucial?

In an increasingly connected world, digitalization enables companies to be more competitive by :

1. Improving efficiency: Automating repetitive tasks frees up staff time and reduces human error.
2. Optimizing the customer experience: By offering personalized services accessible via digital platforms (websites, mobile applications), companies can better meet consumer expectations.
3. Facilitating data analysis: Digitalization makes it possible to collect and use data in real time, enabling better decision-making.
4. Increasing innovation: Adopting digital tools enables companies to stay at the forefront of technological innovation, particularly in fast-moving sectors such as e-commerce, healthcare and industry.

The benefits of digitalization for businesses

Many companies, particularly in sectors as diverse as finance, distribution and healthcare, have seen their performance grow exponentially thanks to digitalization:

• Cost reduction: Digital technologies can automate costly processes such as payroll, accounting and inventory management.
• Improved productivity: Digital tools facilitate collaboration between teams, notably with cloud platforms or collaborative software (such as Slack, Microsoft Teams).
• Greater flexibility: Digitized processes are more adaptable, enabling companies to adjust quickly to crises or economic changes (e.g. telecommuting, e-commerce in the midst of the COVID-19 pandemic).

Digitalization vs. digital transformation

Although the two terms are often confused, it's important to differentiate between them. Digitalization involves integrating digital technologies into existing processes to optimize them. Digital transformation, on the other hand, goes a step further: it involves an in-depth change of corporate culture and business model around digital. It is more oriented towards a complete reinvention of operations, whereas digitalization is more focused on optimizing existing processes.

Case study: Digitization at General Electric with Predix

General Electric (GE) has undertaken a major digitization of its industrial operations thanks to its Predix platform, a service based on the Internet of Industrial Things (IIoT). Predix connects and analyzes data from industrial equipment in real time to improve efficiency, reduce costs and prevent unplanned breakdowns.

Example of application in the energy sector:GE uses Predix to optimize the management of power plants thanks to the digital twin concept. This digital model enables real-time monitoring and simulation of equipment status, helping to identify failures before they occur. By applying advanced technologies such as predictive analytics, GE enables its customers in the energy sector to optimize power generation, reduce downtime and achieve massive cost savings. For example, predictive maintenance solutions based on Predix can reduce operating costs by millions of dollars for gas-fired power plants.

Impact in the rail industry:In the transportation sector, GE has also transformed locomotive operations with solutions such as Trip Optimizer, which uses algorithms to optimize train acceleration and braking according to topography and loading conditions. Thanks to these innovations, GE helps railways save up to $1 billion a year by optimizing fuel consumption and increasing train speed.

Strategies for successful digitalization

To achieve effective digitalization, companies must follow certain key steps:

1. Audit current processes: Identify processes to be improved through digital solutions.
2. Choosing the right digital tools: Each sector has specific needs, so it's crucial to choose the right tools (CRM, ERP, AI, etc.).
3. Employee training: Digitalization will only have an impact if teams master the new tools. Appropriate training is essential.
4. Monitoring and adaptation: Digitalization is an ongoing process that requires regular monitoring to adjust tools and processes in line with results.

Conclusion: why is digitalization essential?

Digitalization has become an essential pillar of corporate strategy. Not only does it improve performance and reduce costs, it also enables companies to anticipate market trends and customer expectations. In a constantly changing environment, it is crucial for companies to adopt digital technologies in order to remain competitive, innovate and sustain their business.

‍

Would you like to find out more about our solutions for accelerating the digitization of your business processes? Request a demo and discover how our tools can transform your operations and help you achieve successful digitalization.