Digitalization: A comprehensive guide

• Digitalization is the process of transforming analog workflows into digital ones. For example, an organization could automate an intake process that relies on physical documents with online forms that customers can fill out before they arrive.
• Current digitalization trends include AI and machine learning, Internet of Things-enabled devices, and distributed scanning infrastructure.
• Digitalization requires specific tools and software platforms that enable you to automate tasks and workflows to ensure digitized files get where they need to go.
• Building a digitalization strategy requires research into how your current processes work, a breakdown of important KPIs to measure success, and a clear vision to execute your plan.

Digitalization: A practical definition

Digitalization means upgrading your company’s analog workflows into digital ones. It combines digitization and digital transformation in order to modernize business models and open new opportunities for value.

Three terms to know:

• Digitization is the process of converting physical assets into digital ones. The act of converting a physical audio CD into digital MP3 files is a form of digitization.
• Digitalization is the process of changing workflows from analog to digital. For example, if you work in a business that needs digital access to physical media archives, digitalization could create processes to collect, convert, and store these digital versions for safekeeping while leveraging version control and user access tools to ensure accountability.
• Digital transformation is the process of taking a technology-forward mindset toward changing a business’ information workflows, with the nearly paperless office being the overall goal. Successful digital transformations bring improved business outcomes thanks to the speed of automation, intelligently-designed software solutions, and high-quality data capture.

Potential benefits of digitalization

• Better operations: Digital document management helps workers quickly organize documents by content and tag. This indexed information allows near-instant access to key information. These types of improvements are a common benefit of digitalization.
• Stronger security: Data on an encrypted network can gain protection. Login credentials help limit access to protected data. Automatic audit trails show who has accessed files or made changes. Automated backups allow for instant rollback in case of data loss.
• Lower costs: Digitalization can also reduce your use of expendable resources. Paper, printer toner, envelopes, and postage all quickly add up. While digitalization may incur up-front costs, it will likely save you money overall.

Read more about the fundamentals of digitalization in What Is Digitalization and Digitization vs Digitalization: A Step-by-Step Guide to Digital Transformation.

Digitalizing the way your company works is a big job, but you don’t have to do it alone. Many digital-first services can slot into existing workflows to make an instant impact with minimal disruption. How do you know which tools will be right for your business? Start by researching these recommendations.

Look for digitalization tools that…

• Address a specific business need. Many tools are designed around the needs of specific industries or workflows. Be sure to get a demo of how its digitalization features work to find out if they’re a right fit for your organization.
• Maximize efficiency. However, what efficiency means is different for each business. Find out what that means for you, whether that’s more papers processed or greater, more comprehensive access to information.
• Fit your budget. Try to keep the cost of using digitalization tools under the costs of your current processes to maximize their effectiveness.

Three tools to digitalize your business

• PaperStream Capture Pro: Automate a wide variety of data entry workflows thanks to PaperStream Capture Pro’s state-of-the-art AI-powered extraction processes. Take data from preset forms and put it exactly where it needs to be so you can spend less time digging through paperwork and more time leveraging that information.
• ABBYY: Accounts payable automation can have a massive impact on your business. In particular, ABBYY’s AP automation helps speed up invoice cycles even as it improves security. Its low-code/no-code design also makes it easy to implement and optimize.
• PaperStream NX Manager: This tool allows IT managers to control many digitization devices on a single network. It minimizes user errors and even allows for remote settings adjustments. PaperStream NX Manager also helps keep important documents secure.

Read more about helpful services in 7 Digitalization Tools to Bring Your Business Into the Modern Era.

The relationship between consumers and companies has changed in the last decade. If you want your company to keep up with new demands, start by looking at companies helping to lead the digital transformation. Here are three examples to get you started.

Three digitalized industries and how they got there

• Financial services: PayPal revolutionized how people spend and send money online not long after its 2002 IPO and subsequent acquisition by eBay. PayPal started by making it easier and more secure than ever to buy products online. Now, small businesses and individuals all over the world use it as a way to take payments and manage their finances.
• Healthcare: Navigating mental healthcare has always been tough, with long wait times and limited resources. Spring Health aimed to make that process easier with a wealth of digital features, including online scheduling, personalized provider recommendations, and built-in support for virtual, same-day appointments.
• Retail: Amazon, and its impact on digital commerce, needs no introduction. But the next wave of online specialty retailers is changing the playing field too. Think Warby Parker’s stylish but affordable eyeglasses and Purple’s mattress delivery.

Find more inspiration in 5 Digitalization Examples From Industries Leading the Digital Transformation.

Building your digitalization strategy

Ready to start plotting out your own digitalization process? You’re in good company. 74% of global companies rate digital transformation as a priority. That’s even higher than customer experience for many. But to ensure your transformation goes smoothly, you’ll need the right roadmap. Here’s how to get started.

A digitalization strategy should…

• Be a formal business plan. Write down where your business is, where you want it to be, how you plan to get there, the people who will oversee the project, and the KPIs you will use to measure the project’s success.
• Incorporate digitization elements. Find out what tools you need to help you get the job done. These could be a combination of physical devices, like document scanners or CD/DVD readers, and software solutions that help you process and sort your digital scans.
• Build on a digitalization framework. Create robust processes that think about the entire digitization flow, from receiving the physical media to processing it and securing or disposing of it. Build quality control and security checks into the process to ensure data accuracy and reduce the likelihood of data leaks.

Essential aspects of your digitalization strategy

• Digital vision: Digitalization leaders must have a clear vision of what they wish to achieve. This can take the form of a brief vision statement that lays out what the transformation will look like. It should align with existing strategies wherever possible. Select key metrics that will reflect your progress toward digitalization. Go beyond revenue and profits if possible. Higher productivity is a great indicator of a sustainable transition.
• Process: Cast a critical eye over your existing processes. Which areas could obviously be improved with digitalization? Which are worth investigating further? Which are fine as they are? Team members with IT expertise will be especially helpful in answering these questions.
• Tools: The right tools will help you make short work of any digitalization effort. For example, documentl scanners with automated feeders can process dozens — or even hundreds — of documents in a single job. Combine that with a software platform that will automatically name, sort, and upload digital files once scanned, and you can cut down tremendously on processing times.

Find more steps to take toward your digitalization roadmap in How to Get the Most Out of Your Digitalization Strategy.