Business digitalization is the process where companies are integrating digital tools into their practices: sales, marketing, document workflow, or management. In contrast, in the process of digital transformation, from traditional businesses, they become digital companies at a deeper level. In this way, they step into the realm of digital transformation (DX), boosting their technological and digital progress. In practice, this means incorporating new technologies into the company’s processes, such as artificial intelligence, data analytics, and cloud computing, to optimize the organization’s operations and maximize its competitive advantage. Does digitalization always mean transformation? And what does it take to win in the digital age? Read our article and find out.

What is business digitalization? – table of contents:

  1. Introduction
  2. The key elements of business digitalization
  3. The benefits of business digitalization
  4. How to digitize your business?
  5. What is the difference between business digitalization and digital transformation?
  6. Summary


Business digitalization is gaining weight in the world of modern enterprises. Optimizing processes, increasing efficiency, and improving customer relations at relatively low implementation costs, give companies an edge that can let them turn a crisis into an opportune time to improve operations and streamline traditional solutions.

According to a report prepared by the SAP Center for Business Insights in collaboration with Oxford Economics:

  • As many as 80% of organizations that have completed a digital transformation have significantly boosted their revenues,
  • 85% of them have increased their market share,
  • They expect 23% higher revenue growth than their competitors who have not implemented digital solutions.

So what benefits can a company get from transforming into a digital business? And how to make replacing analog tools with their digital counterparts the beginning of an organization’s transformation?

The key elements of business digitalization

Digitalization embraces several basic areas. Some of them, such as replacing paper documents with digital ones, and letters with e-mails, seem so obvious that they barely spring to mind. However, many companies in the 20s of the 21st century are still using the former just fine. Here are some more examples of business digitalization:

  • automating processes – using technology to automate routine tasks so employees can focus on more creative and more challenging assignments,
  • digital analytics – using data collected within the company to better understand customers, the market, and its own processes,
  • cloud computing – storing data and using services in a cloud-based model, which allows for flexibility, scalability, and easy access to resources,
  • implementing mobile technologies – using smartphones, tablets, and other mobile devices for corporate purposes to manage business, sales, or customer service more easily.
business digitalization

The benefits of business digitalization

Business digitalization can bring a number of benefits, for instance:

  • greater efficiency – by automating processes and making better use of data,
  • improved customer relations – through easier access to information, providing faster and partially automated service, and personalizing offers,
  • innovation – as it makes it easier to develop new products, services, or business models,
  • increased competitive edge – by making it faster and cheaper to adapt to changing market conditions and customer expectations.

Implementing digital solutions is especially important if you run a small business. After all, with software, automation, and artificial intelligence, you can do much more on your own or with a small team than in the pre-digital era. Let’s take a closer look at some good examples:

  • e-commerce – a company with two employees invested in a customer relationship management system (CRM) to gain a better understanding of customer needs and optimize its sales process,
  • a freelance web designer – by using project management tools, they have improved client collaboration and streamlined order processing,
  • a local restaurant – it has introduced a mobile app for ordering takeaway food, helping it boost sales and win new regular customers.

How to digitize your business?

Follow these steps to successfully implement digitalization in your business:

Set goals and priorities

Decide what areas of your business can benefit most from digitalization. It could be improving processes, increasing sales, or providing better customer service. Set goals and create an action plan.

Choose relevant tools and technologies

There are a number of various digital technologies and tools available in the market. Choose the ones that best suit your business needs. For example, software for managing your company’s projects and finances, such as Firmbee, or tools for data analysis such as Google Analytics.

Take care of cybersecurity

Business digitalization involves collecting and processing data. Make sure it is stored and handled in compliance with applicable regulations, as well as protected against potential threats.

Introduce changes

Business digitalization can consume a lot of time and resources. Introduce changes bit by bit, monitor the results, and adapt your strategy as needed.

Train and support your employees

If you hire employees, business digitalization may involve training them to use new technologies. Make sure to provide them with the right support so they can use the implemented solutions effectively.

What is the difference between business digitalization and digital transformation?

Business digitalization is the process of incorporating digital technologies into an organization’s existing systems and processes to automate and streamline its operations. It applies to specific areas of business, such as:

  • marketing,
  • sales,
  • customer service, or
  • resource management.

Business digitalization focuses on implementing tools and technologies that help the company become more efficient and improve its bottom line. Digital transformation, in turn, is a holistic approach to managing change and innovation in an organization that goes beyond the introduction of new technologies.

It involves both organizational and cultural changes, allowing a company to fully exploit the potential of digital technologies to create new business value. Digital transformation requires a shift in mindset and organizational culture that supports innovation and openness to change, as well as strives for constant improvement. To spell it out, business digitalization may be one of the stages of digital transformation, but it is not the same thing.


As the importance of business digitalization continues to grow in the modern world, companies are looking for ways to implement digital tools and technologies to optimize processes and increase their competitive advantage. Business digitalization usually encompasses process automation, digital data analytics, as well as the use of cloud computing and mobile technologies.

It yields several benefits, such as improved efficiency, stronger customer relations, innovation, and greater competitiveness. Digitizing a business entails setting goals and priorities, selecting the right technologies, addressing data security, rolling out changes gradually, as well as supporting and training employees while these changes are taking place.

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What is business digitalization? | Digitizing your business #1 andy nichols avatar 1background

Author: Andy Nichols

A problem solver with 5 different degrees and endless reserves of motivation. This makes him a perfect Business Owner & Manager. When searching for employees and partners, openness and curiosity of the world are qualities he values the most.

Digitizing your business:

  1. What is business digitalization?
  2. How to avoid the pitfalls of digital transformation?
  3. Balancing digital transformation with data security
  4. Digital marketing
  5. Digital financial management and online accounting
  6. Managing digital teams
  7. Digitalization in industry
  8. Digital training and induction
  9. Cloud vs server. Pros and cons
  10. XaaS and subscription business models
  11. Cloud computing
  12. The future of digital enterprises
  13. The cloud and artificial intelligence
  14. What XaaS services to use when running a business?
  15. Microservices and APIs
  16. RPA vs API. How to choose the right automation strategy?
  17. Best-of-breed vs all-in-one. Which is right for you?
  18. All about workflow automation
  19. Top 5 no-code tools your company needs
  20. How to build business applications and websites using AI?
  21. Gamification in the workplace
  22. Gamification in business
  23. Gamification and customer experience
  24. What are disruptive technologies?
  25. The impact of disruptive technologies on business
  26. How to introduce business change wisely?
  27. What are the risks of AI?
  28. Nurturing digital culture. Balancing change and identity
  29. How to build an innovation culture in the workplace?
  30. What is a digital mindset?
  31. Frontline workers in the era of digital transformation