How digital technology impacts your business?

The value of digital technology

Digital technology comprises digitized information and technology, and digitized information is represented by the binary code (0-1) and bits of words and images. Digital technology includes electronic devices and software used to compress, store and transmit information. Digital tools include websites, email, social media, mobile telephones, search engines, video-call apps, blogs, and other online apps. These digital tools help the firm improve efficiency, strengthen its competitive position, advance communication, polish the quality of its products or improve the working environment. Let us imagine how a firm used to manage its operation before the age of computers and dot.com environment. Everything was manual, took longer and had a limited scope of influence. However, in the modern digital environment, running a business is becoming more simple, easy to manage, requires fewer resources and the impact of decisions made is widespread. These advantages show us the real value of digital technology.

Digital technology increases customer experience

Digital technology is becoming essential for the success and growth of a firm. It helps firms to communicate with stakeholders, market and sell their products, and most firms nowadays make use of digital technology. Transforming the customer experience is at the heart of digital technology, which is changing the game for customer interaction. Customer-experience can be enhanced, and customer engagement increased through new digital channels. The digital firm creates a positive customer experience by increasing customer discovery, retention and growth. It also enables firms to analyze data and innovate products. A firm uses digital technology to improve customer satisfaction, increase reach out to customers and enhance the engagement of customers. Yet, it is a necessary tool for customer discovery, retention, and growth. Digital technology allows analyzing customer data and innovating products by spotting market gaps and making compelling solutions.

Digital technology improves core operations

Digital technology helps businesses to perform their core operations by connecting people, processes and technology hasty to help you achieve better customer experience and outperform competitors. A firm uses digital technology to increase productivity and efficiency of resources by connecting people and improving the processing of activities. Digital technology allows analyzing customers’ needs and developing innovative products. It is a vital tool for managing production, controlling quality and handling supplies and inventory. Yet, it helps to manage human resources, i.e. Acquiring, developing or managing, and finance, including management of profitability and cash flow.

Digital technology requires discrete capabilities

Digital capabilities are a set of skills that a firm has to build and operate digital technology. Firms should assess their digital capabilities, identify skill gaps and plan for improvement. Digital capabilities comprise five distinct knowledge areas, including ICT proficiency, information literacy, digital creation, digital communication and learning. ICT proficiency describes the proficient use of ICT-based devices and applications, and information literacy presents the capacity to find, check, organize and communicate digital information. Digital creation shows the ability to design and create writing, imaging, audio and video materials, and digital communication illustrates the capacity of sharing information in digital media. While digital learning explains the ability to learn from digital resources.

Final note

This article is extracted from my new book- Mastering Enterprise Skills for Potential Entrepreneurs, which can be found on www.amazon.co.uk. If you want to receive more information about the book and our activities, you can register in our newsletter by using this link.