Table of Contents

INTRODUCTION:................................................................2
MAIN SECTION:.................................................................2
DIGITIZATION IN MANUFACTURING SECTOR:....................2
DIGITIZATION IN INSURANCE SECTOR:.............................4
CONCLUSION:....................................................................7
REFERENCES:....................................................................8

INTRODUCTION:
Digitalization is the process of converting analog information or signals into a digital
form that can be understood by electronic devices or computer systems. Digitized
information is extremely easy to access, store & transmit and in the modern business
digitization is used by a high number of consumer electronic devices. For this
research investigation, I will be investing digitalization and its key to future business
success. The reason for investigating in digitalization is that over the years digitization
has taken over the business world due to its strong influence on organizational
growth. For this research, digitization is a key to future business sources will be focus
on Insurance and Manufacturing sectors.

MAIN SECTION:
Digitization is having a major impact on markets such as the traditional automotive
manufacturers are capable of making the lead which is required to produce
autonomous, smart cars for the consumers. The process of digitization has already
taken a rapid pace in the world and it is clear that the impact of digitization transforms
the world as well as innovation in the world. As Moores law says that the doubling of
computer processing speed with every 18-24 months for the last 50 years and the
modern technology has become smaller, cheaper and faster. Manufacturing industries
and insurance sector are moving faster towards digitization, as manufacturing industry
requires huge pile of data and on the other hand insurance sector deals wit high
volumes of physical documents, checks, paper, faxes, envelopes and cards.

DIGITIZATION IN MANUFACTURING
SECTOR:
According to Chuang, Lyytinen & Lingham (2013), digitalization has become a key
success factor for the manufacturing sector as many of the manufacturing companies
are involved in the adoption of digital manufacturing. As manufacturing creates more
data than any other sector in an economy and industries and academic leaders agree
that digital manufacturing technologies are a future for manufacturing. As
digitalization will transform every link in the manufacturing value chain, from supply
chain, R&D, sales & service and to factory operating to marketing activities of a
company (Chuang, Lyytinen & Lingham, 2013). The digital connecting among the

managers, designers, consumers, physical industrial assets and workers will unlock
huge pile of value and it will change the manufacturing landscape in the future. The
leading organizational in the world are responding to digitalization as they the
information use by organizations has shifted dramatically and in the future digital
manufacturing technologies will allow the organizations to connect their physical
assets by the digital threat and it will lead to a seamless and ease flow of data in their
value chain which will improve their product life cycle, sourcing, production &
distribution, testing and point of sale (Preston & Rogers, 2012).
One of the most common examples of digitalization in the manufacturing sector is
that the pharmaceutical manufacturers are using their deeper understanding to develop
constant manufacturing suites, which are less than the size of normal factories. Such
companies are also using digital threat in order to improve the quality of their
products as well as infrared technology in order to detect sham medicines without
using destructive tests. The following diagram shows the view of manufacturing
executives in US about the importance and influence of digitalization on the future of
manufacturing sector:

Source: Dale Buss, (2015)

The above diagram shows that manufacturing companies in US are giving huge
importance to digitalization and according to them it will shape the future of the

manufacturing industry. The leading consumer packaged good manufacturing

companies are using the digital tools in order to improve their bond with consumers as
well as enhance the distribution of their products.

DIGITIZATION IN INSURANCE SECTOR:

Insurance sector is one of those sector which comprises of high volume of physical
data and paper work which makes it difficult for the growth and adoption of
digitization. According to Boubakri (2011), The high volumes of paper weigh on
efforts to improve the efficiency of daily workflows and effective organization-wide
operations. Contribute to the added expense, they are often the result of errors in
transcription and presentation and often cause delays in sales and service. The main
justification for image digitization projects and has traditionally been a cost savings.
SMA research shows that insurers are shifting their focus on the purpose of the
investments of business optimization for cost savings scanning, combining advanced
technologies like capturing business and project content management workflow and
management of business processes (Bouhakri, 2011).
The insurance companies says that the highest level of digitization for the inbound
paper documents exists in the areas which supports the underwriting processes for
organizations. The following diagram shows the highest degree of digitization for
inbound documents;

The above diagram shows that 54% of the insurance companies have high degree of
digitization and this will continue in the future and digitization will lead to success for
the applications as well as development of the sector. As the scanning progress varies
by business, but also varies according to the business document formats - paper, fax,
checks, cards and envelopes. Figure 2 shows steady progress for the industry, with
more than half indicating that insurers scan most or all of your faxes and paper
documents. Still, there is more work to be done. A total of 84% of insurers plan to
increase scan faxes over the next three years, and 63% say they will increase the input
paper scanning. It is noteworthy that insurers plan to increase scanning in the five
categories of physical documents in the next three years. With a high percentage of
documents still in paper form such, there are great opportunities for scanning
envelopes, cards and checks. Envelopes and cards often contain valuable customer
information or that should be kept, as the return addresses, responses and requests for
information. In many cases, this information is lost or copies on file, where
information becomes practically inaccessible (SMA, 2012).

Source: SMA, 2012

With the digitization in the insurance sector it will enhance the customer experience
and allow the companies to understand digital behavior of customers and allow firms
to offer robust online & mobile channels with integrated & seamlessly technology.
Insurance sector holds great amount of data and moving to digitization allows the ease
of managing data and the use of technology will activate the digital transformation.

According to Huseynov & Id (2014), Only 8% of insurance and 10% of new general
insurance premiums flow through online sales channels or mobile today, although
many insurers plan to substantially increase the share. Companies that follow a digital
distributor model aimed at accelerating change, with tailored features and prices for
digital channels, as needed. Service levels for only digital delivery can be comparable
or better than the physical channels, as the company can start with a clean sheet
design and simpler processes. Direct digital distribution works best in regions such as
the Nordic countries, where consumers already show a strong absorption of other
digital services such as online banking. The main challenge is the inherent conflict
between the digital channels of the insurer and its tied agent or broker (Huseynov,
2014). Digitization in the insurance sector has increased the flow and processing of
papers in the organization as it allows the firms to improve their information flow
easily. The digitization is the future for the insurance sector as they manage high flow
of data can be easily managed by the insurance companies due to adoption of
digitization in their business operations.

CONCLUSION:
Based on the above analysis and research on digitization it can be concluded that over
the last few years every industry and sector has adopted digitation in their value chain.
The flow of operations has improved as organizations are adopting digitization and
sectors such as manufacturing and insurance, which heavily rely on data, has become
successful due to their digitization. Manufacturing companies are adopting and
shifting to digital data because of high flow of data and the future is shaped by the
adoption of digitization in the sector. On the other hand, the insurance companies are
also shifting and they has achieved success due to high flow of data management
being moved to digitization. Therefore, it can be concluded that digitization is a major
movement for the firms to perform long term successful business operations.

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