The Implications of Digitalization on the Firm’s Worth Creation, Proposition and Catch
Digitalization implies using digital technologies to boost a company’s business techniques, products and services. While there are many advantages to digitization, in addition, it poses a number of problems.
Advantages of digitization
Digitization can easily improve a company’s internal procedures by eliminating manual tasks and reducing costs through automation. In addition , it can help a corporation gain clients or expand its existing customer base.
Disadvantages of digitization
A key pitfall with digitization is the fact that that digital information may be easily re-structured and erased. This can result in errors and misunderstandings.
In addition , a company may become overly dependent on technology. This can result in a lack of human abilities and lessen the pace of production.
The emergence of the digital overall economy has led to a fundamental shift in the manner businesses produce and market many and products. In contrast to traditional industries, which in turn rely on expense and labor resources for many and providers, https://cloudycrowd.net/2022/05/11/how-data-rooms-changed-business-communications/ an electronic digital economy works with productivity.
Hence, it is crucial to have a distinct vision about what the digitalization of a provider will require and put into practice it smartly.
The ramifications of digitalization on a firm’s value creation, proposition and capture were investigated in two exceptional industries, the media and automotive industry, employing qualitative empirical data collected by 12 essential informants. A conceptual setting up based on dynamic capabilities was followed to body the empirical study (see Figure 1).