What is digital technology, and how it impacts a business?

The value of digital technology

Digital technology comprises digitized information and technology, and it 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 can help the firm to improve efficiency, strengthen its competitive position, advance communication, polish the quality of its products and improve the working environment. Let us imagine how firms used to manage their operation before the age of dot.com, where activities were mostly manual, took longer to deliver and had a limited scope of influence. However, in the modern digital environment, running a business becomes simple, accessible, easy to manage, requires fewer resources and impactful. These advantages can show us the real value of digital technology.

Digital technology increases customer experience

Digital technology becomes essential for firm success, as it empowers the enterprise to communicate with stakeholders, search the market, advertise and sell products online and increase customer experience. Customer experience is at the heart of any digital technology, which influences how the customer engages and interacts with business offers. Technologies have changed the business game, as through enabling online marketing and sales. Besides, technologies empower businesses to develop customers including, discovering, attaining and growing customers. Also, startups, with the help of technologies, can test their products with customers in the market before they launch them. Technologies help firms to analyze data and innovate products, as through spotting market gaps and creating unique solutions. Moreover, firms can use digital technology to improve customer satisfaction, increase reach out to customers and enhance customer engagement.

Digital technology improves core operations

Digital technology helps businesses to manage operations, as through connecting people, improving processes and improving performances. Technologies help firms to improve performances for sales and marketing, human resources, operation and finance. A firm uses digital technology to increase productivity and efficiency by connecting people, improving the processing of activities and increasing outputs. Digital technology allows analyzing customers’ needs and developing products that customers want. Also, online sales and marketing have helped businesses to reach out to customers massively and improve sales. Technologies are significant to manage production, control quality and handle inventories. Yet, it helps to manage human resources, i.e. by easing processes of acquiring, developing and managing people, and finance by managing profitability and cash flows. Last, digital technologies that provide emails, networks and communication tools, have been impacting communication between staff and outside.

Digital technology makes values

With the existence of internet technology, several online businesses have become successful including, Google, Whatsapp, Facebook and more. Technologies ease market research, help to spot challenges and create solutions. Also, technologies enable testing solutions and making value propositions, which customers want. Unique values that, include a collection of product benefits and features, can only be made with the support of some technological tools and platforms.

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 in The Book. If you want to receive more information about the book and our activities, you can register in our newsletter by using this link.

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Munther Al Dawood

Grow Enterprise

http://www.growenterprise.co.uk

maldawood@growenterprise.co.uk

Reading, UK

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