Digitalisation Digital Transformation
what do you think of when you first hear
the term
digitalization and digitization
numbers data technology or coding
well many people often mistake it as
merely as the absence of paper
while digitalization and digital
transformation is more than that in the
business world
and is closely linked to our daily lives
more than we think it is
before we dive deep into the topic i
would like to start off by defining a
few terms
digitization digitalization and digital
transformation
this is not a word play a few letters
make a massive difference in meaning but
all are closely linked
digitization according to bloomfire
is the conversion of analog information
into digital form with suitable
electronic devices so that information
can be stored
processed and transmitted through
digital circuits equipments and networks
to put it in similar terms for tech
delivered people out there
like myself it means to convert
information
into codes such as ones and zeros so
that can
a computer can store information for
example having sheets of information
all organized into an excel spreadsheet
this is still sound a little bit
confusing to you
well don’t worry because we won’t be
discussing about digitization
and the ones in the zeros we will leave
all the techy stuff to the computer
science professionals
today we’ll be discussing about digital
transformation in the business world
digitalization as gartner’s i.t glossary
defines it
is the use of digital technologies to
change a business model
and provide new revenue and value
producing opportunities
it is the process of moving into a
digital business
an example of this is having employees
shifting from working offline.word
documents
to storing information on cloud-based
servers like
google docs making it easier to update
and export information within the
workplace
digitalization is about the process of
applying technology to existing
businesses
digital transformation according to the
enterprisers project
is the integration of digital
technologies into all areas of business
fundamentally changing how you operate
and deliver value to customers
digital transformation includes all
aspects of business such as
consumer behavior growth strategies
performance
new business models and more digital
transformation isn’t simply about
the substitution of old tools it is more
about the evolution
of digital technology and the culture
changes in businesses
to make it simpler here is a diagram to
show the difference between
the three terms digitization
digitalization
and digital transformation
essentially digitization is converting
information from paper into numbers and
codes
which then can be transmitted and stored
digitalization is where businesses
change and adapt your business in a
digital form
and digital transformation is where
innovation and creativity comes in
where business models are developed and
involved
so after explaining and clearing out all
these terms
what does this mean to us in what ways
does this change how business
operate in the light of an era where
technology and i.t
is involved in every aspect of our lives
companies are shifting towards the
process of digitalization
due to its benefits here are the main
targets
firms try to achieve with digitalization
and digital transformation
efficiency improved decision making
agility
customer satisfaction and profitability
all these factors allow business to gain
a more competitive stance within
their market within the rapid changes to
our economy and market nowadays it is
important to
increase efficiency adjust quickly and
easily
based on the changing priorities and
aims of our businesses
this might still sound a little vague so
let’s bring into the context of the
convenience store market
in the past 40 to 50 years the
convenience store industry has not
experienced much change despite the
advancement in technology therefore it
is a great opportunity to build up a
strong stance
and within the market and blee phone
took this
opportunity beyond the phone directly
translates to
convenience bee it is a chinese
cashier-free convenience store operator
that was created in 2016.
in may 2020 last year it raised 100
million usd
in its series c putting the company’s
total capital raised at 1.5 billion usd
making ble fung one of the most
capitalized tech private tech companies
in china
and how did blepham achieve this within
four years
they did this with the help of digital
transformation
the ble fung system involves advanced
algorithm methods
the usage of big data management and
supply chains
and also shelving and the utilization
of a consumer to manufacturing model
which displays and
encapsulates the different techniques in
digital transformation
different from traditional convenience
stores such as 7-eleven
blephong sets out an example for us to
see how convenience stores
may operate in the future by fund’s
initiative is to allow consumers to gain
access to convenience stores by
increasing coverage across the country
making sure that consumers receive the
best service
and to reduce costs and also to maintain
and improve the quality of their
products
bluephone created this algorithm where
decisions and solutions can be
calculated and made quickly
however although the algorithm can come
up with somewhat
business plans it has still not achieved
the point where it can suitably apply to
solutions into real life contexts and
this is where
manual decision making is involved
humans have a good balance in decision
making when facing drastic and
unusual changes into their environment
however they cannot find solutions
as fast as a coded digital algorithm
therefore bionifol manages their system
using both technology
and human decision making in their
business model
this is applied to be on the phone’s
convenience store planning
different from traditional and normal
convenience stores
bme phones convenience stores does not
have storage rooms
when blue phone order items they will
consider the location of items on each
shelf they will consider the height and
the width of the shells and they
consider the length of each product they
will be displaying on their shelves
and all this data is stored in belly
film’s algorithm where they can
they are able to calculate the best
possible item shelving strategies
the shelving of items in bielefon’s
convenience stores are very important
if the items are scattered on shelves
there is a possibility that 10
of shoving space will be wasted meaning
that there will be a reduction in items
displayed and fewer choices for
consumers
therefore the utilization of their
system can reduce
storage area increase choices of items
maintain the quality of their products
and also to reduce costs and therefore
reduce prices for
of products for consumers bluefong’s
entire supply chain is fully digitalized
and also undergoes digital
transformation their system also
calculates the number of items needed to
be produced
every day and an estimate of the amount
of time needed for each product to be
produced
transported and then sold this not only
increases the efficiency within their
supply chain
but also minimizes the amount of voice
that is produced
other aspects such as the location of
convenience stores are also decided by
the system
where it can help is the ble phone’s
team to decide
where to locate their stores ble phone
would
assign their most capable worker to
calculate and find decisions with
regards to
several issues and to compare their
workers results with the system
if a mistake or bug appears in their
algorithm due to
the unpredictability and the
response as the complication of from our
markets
the system will be regenerated into a
more advanced system
what this means in simple terms for
consumers is that the cost of products
is reduced
less time is spent and we are able to
gain better products and experience
better services
this use of technology is example of
digital transformation
where decision making and solutions can
be made by digital systems
this helps business to achieve their
main targets of
efficiency agility consumer satisfaction
and profitability
their advanced system allows beyond
phone to experience digital
transformation
and allows bialyfong to achieve a huge
success in the convenience store
industry
digital transformation does not only
apply to the market of purchasing goods
it applies to many different types of
businesses and it has
unlimited possibilities the digital age
we are in right now requires businesses
to undergo digital transformation to
gain a more competitive stance within
the market
the world we are in is very
unpredictable and there are always rapid
changes in every hour
every minute and every second the
current pandemic is an example that has
changed our markets drastically
and our perspective of the world
therefore changes in the business model
and behavior is important
and taking advantage of the technology
we have is definitely a way in
which our businesses can move swiftly
with these changes
a business that experience digital
transformation can have
unlimited potential and endless
possibilities
thank you