Digital Transition: Meaning
“Digital transformation” is a term that refers to the digitization of business processes. Digitization means optimizing operations and activities where resource savings can be achieved through computerization. It is essential to understand that digitization does not concern activities alone, but rather processes in particular: in fact, the mechanisms that connect the various activities are the first areas to address in order to improve the performance of those activities.
Let’s consider a very simple example: if we’re used to collecting information on paper, digitizing this activity could mean storing the data on a computer. Digitizing the process, on the other hand, could involve sharing that data on the cloud so that it’s instantly available to everyone who needs it, without the need for any additional steps.
The digital transition is therefore a technological transformation that enables companies to optimize their production processes and, as a result, improve their performance.
Ecological Transition
When discussing the digital transition, it is important to also focus on the ecological transition. Amid ongoing changes and process optimization, there has been a gradual increase in focus on environmental considerations and issues such as corporate sustainability. Digitizing and streamlining business operations means having the opportunity to reduce their environmental impact: whether we’re talking about CO2 emissions, the consumption of materials like paper and plastic, or travel, there are many aspects of the digital transition that also promote the ecological transition.
In future articles, we will explore in greater depth how the ecological transition can bring benefits to the company both environmentally and economically; in this article, we want to focus on the meaning of the digital transition.
The True Digital Transition
Just as is the case in the realm of sustainability, the concept of “digital washing” could also be applied in a business context. We are living in a time when embarking on a digital transition is extremely advantageous for companies: not only are more and more companies becoming aware of the benefits in terms of time savings—and thus in terms of revenue—resulting from a well-executed digitization process, but there is also the added incentive provided by various financial incentives for companies that undertake this transformation.
For example, there are incentives under the PNRR that reward companies that are able to digitize and optimize their internal processes. Although the guidelines for accessing these incentives are fairly clear, many have realized that they can benefit from appearing to be digitized companies, but that is not enough to secure these financial boosts.
Whether to access incentives or to achieve real and immediate gains from internal optimization within the company, the digital transition must be genuine and tangible. There are several ways to achieve this goal: internal training, for example, is of fundamental importance in terms of keeping employees up to date and ensuring their inclusion; when new technologies are introduced, it is essential to enable employees to acquire new knowledge without feeling left out of the digital transformation. At the same time, it is necessary to identify new professionals with specialized expertise in IT and technology who can share their experience and skills to facilitate the digital transformation process.
The digital transition is a fairly radical business transformation and, depending on the circumstances, can significantly alter the very structure of a company. Although change is not always welcomed and may sometimes be perceived as a threat, we are at a historic moment in which change represents an opportunity: the digital transition is, in fact, an opportunity for growth, adaptation, and progress for companies. It is obviously necessary to embrace it and tackle it with expertise, guidance, and a thorough analysis of one’s own circumstances in order to better understand the new developments and the internal changes that need to be made, the associated timelines, and the benefits they bring.
We'll explore all aspects of the digital transition in upcoming articles. In the meantime, if you'd like personalized advice, please don't hesitate to contact us.
