Digitalization indicates using digital technologies to improve a company’s business techniques, products and services. While there are many positive aspects to digitization, in addition, it poses a number of obstacles.

Advantages of digitization

Digitization can easily improve a company’s internal operations by eliminating manual tasks and reducing costs through automation. In addition , it can help a firm gain clients or grow its existing customer base.

Cons of digitization

A key drawback to digitization is the fact that digital information may be easily altered and wiped. This can lead to errors and misunderstandings.

Additionally , a company could become overly dependent on technology. This can result in a loss in human skills and decelerate production.

The emergence of the digital financial system has led to a fundamental shift in the way corporations produce and market many and providers. In contrast to traditional industries, which usually rely on high costs and labor resources for goods and offerings, a digital economy functions with efficiency.

Hence, it is important to have a crystal clear vision of what the digitalization of a firm will require and use it logically.

The significance of digitalization on a firm’s value creation, proposition and capture had been investigated in two unique industries, the media and automotive industry, using qualitative empirical data collected out of 12 key informants. A conceptual setting up based upon dynamic capacities was adopted to frame the empirical study (see Figure 1).