To know how planning should go, it may be advisable to use the concept of digitization. When we talk about digitization there is a similar word – “digitization” – which is often used to more easily define the term. Digitization means the processing of analog information into digital information, and Digitization means that working methods and processes are changed with the help of digital information. Digitization is about creating and delivering new value to customers and not just developing what already exists.
Digital technology affects both the profitability and the growth of companies. Nine out of ten companies say they are engaged in digitization, but only one in six says they are fighting the change with bold strategies. Figures that are surprising given the impact digitalization has on businesses. Almost no industry is protected from the effects of digitalisation, but is rather about the extent to which a particular industry may be affected.
According to a study by McKinsey, it appears that few companies are preparing enough for “digital interference” from competitors. The best solution according to the study is to meet digitalization with a strong and scalable strategy.
To succeed with digitization, some planning is therefore required. At the same time, one wants to be able to act fast as the impact of digitalisation is at a rapid pace. It is often the decision within a company that slows down a digitization process, rather than bottlenecks in IT development. A digitization process therefore feels good about a well-designed plan to avoid pitfalls that can be predicted in the planning.
Companies that are considered to be digitally efficient and at the forefront have a number of common factors:
Visionaries who aim unreasonably high – by thinking ambitiously about the future, creates a target image of a company that can deliver superior value to customers, and not just as part of what drives activities within the company
Gain knowledge and capacity – digital transformation requires knowledgeable staff who are able to drive development forward. In addition, it requires a commitment and ability from companies as large
Challenge everything – leaders in companies at the forefront must consistently question how things work to secure a position high up the line. If this is not done, there is a risk that competitors will dominate with new digital solutions
Speed and data-driven – Digital change requires that you can react quickly to changes in the market, and that data is used to drive the business in the right direction