The Implications of Digitalization on the Firm’s Value Creation, Idea and Take

Digitalization suggests using digital technologies to boost a company’s business functions, products and services. While there are many advantages to digitization, in addition, it poses a number of complications.

Advantages of digitization

Digitization can improve a company’s internal operations by eliminating manual tasks and reducing costs through automation. In addition , it can help an organization gain new customers or expand its existing customer base.

Disadvantages of digitization

A key disadvantage of digitization is the fact that that digital information can be easily transformed and lost. This can result in errors and misunderstandings.

Additionally , a company could become overly dependent on technology. This can result in a reduction in human know-how and decelerate production.

The emergence on the digital economic system has led to an elementary shift in the manner businesses produce and market many and services. In contrast to classic industries, which will rely on high costs and labor resources for goods and companies, a digital economy operates with performance.

Hence, it is important to have a very clear vision by what the digitalization of a enterprise will include and use it strategically.

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, applying qualitative go right here empirical info collected coming from 12 essential informants. A conceptual setting up depending on dynamic capacities was implemented to frame the scientific study (see Figure 1).