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Table of Contents

1.0) INTRODUCTION:..................................................................2
2.0) MAIN BODY:........................................................................2
2.1) DIGITIZATION KEY TO SUCCESS IN MANUFACTURING SECTOR: 2
2.2) DIGITIZATION IN SERVICE SECTOR:.......................................4
CONCLUSION:............................................................................6
REFERENCES:............................................................................6

1.0) INTRODUCTION:
Zhou (2013) defined digitalization as the process of transforming information into a
digital format and the information is organized in discrete units of data and they can
be separately addressed (Zhou, 2013). Digitalization has increase in the organizations
due to increase in the business operations and many firms are adopting digitalization
of data. The major reason due to which this topic was selected for this research is that
there is an increase in the number of organizations and business sectors, which are
transforming physical data into digital data, and this enhances the flow of operations.
The two sectors that will be studies for this paper are service sector and
manufacturing sector, which are primary and secondary sectors in an economy. The
following analysis provides more in-depth information and analysis on digitalization
in both sectors in the economy.

2.0) MAIN BODY:


Manufacturing companies and service-oriented company are generally slow to react
towards the digital technologies. Digitalization has taken over to many firms and
sectors and they are adopting it due to its potential benefits. Yeo & Carter (2011) said
that digitalization leads to success in the business operations of the company due to
improve value chain and flow of information. Transforming from traditional methods
of information processing to digitalization enhances the management of data and
information, which allow firms to operate effectively and focus on activities, which
requires more focus of the firms and eventually leading to success in the future
activities of the company. The following analysis focuses on the two different sectors
which has achieved success due to digitalization and they will further enhance in the
future.

2.1) DIGITIZATION KEY TO SUCCESS IN


MANUFACTURING SECTOR:
Manufacturing sector has been copping up with other sectors for the adopting of
digitization in the business operations. Digitization has helped the manufacturing
sector to manage their data along with improvements in their value chain through
automation and digitization of operations. The given below diagram shows the
transformation of a classic value chain to integrated value chain;

Source: Capgemini Consulting Analysis, 2014


Digital technology can help manufacturing companies become highly innovative, fast
growing and fast. Developing products experienced a significant increase in capacity
for innovation through innovation and collaboration within the network capabilities
integrated. In the area of production, digital tools help companies increase
productivity and agility of their factory to a new level. Supply Chain Digital can cover
stains, even from a distance features high efficiency. Tools digital marketing, sales
and services can increase efficiency, earnings and margins in the global market. The
internal support can be embedded in the digital value chain. Apart from the integration
of the chain value digital production can take advantage of the opportunities digital by
business models and their operations worldwide to enhance coordination and improve
efficiency. This can be achieved through proper level of the center, while maintaining
and strengthening local flexibility presence and engage in various departments and
countries. Using technology digital division sales and operations between services,
global network of suppliers, collaboration and services as well as a benefit and
allocate costs and control system best with destiny right can be effective and
established companies manufacture efficient operating worldwide (Trpovski, 2012).
Digital technology has started to affect business performance across industries.
Organizations are feeling the harmful effects of production and operation of its digital.
However, it seems that most manufacturing companies are convinced of the benefits
of the digital value and suggest how to wait and see. For example, in the exploration
industry ago, only 25% of executives surveyed believe the manufacturing sector will
be affected by the change to digital in the next five years (see Figure 3). While there
may be some truth to this, as the manufacturing sector is characterized usually by the
original complex process and legacy thinking, we believe that there are areas in the
value chain of production and forms of action that can be transformed radically by

digital. The following diagram shows the impact of digital along the manufacturing
value chain;

The manufacturing sector is focusing on to improve the quality of their products and
in the same hand reduce costs. The digitalization tools allow manufacturers to be
more efficient by sharing knowledge, integrating knowledge management systems
and to enhance communication within the organization. The use of digitization
increases the quality of products as well as improves the activities of value chain in
manufacturing companies. Therefore, based on the analysis it can be said that further
development of digitalization in the manufacturing sector will enhance the future and
lead to success for the manufacturing sector.

2.2) DIGITIZATION IN SERVICE SECTOR:


Service sector comprises of number of companies that operate such as finance,
insurance and banking services. Robert half (2015) said that over 89% of the UK
finance leaders say that digitized finance functions has improved to meet the future
challenges compared to other parts of the European countries. The finance/banking
sector is moving along with the digitization mainly after the 2009 financial crisis,
which hit the world. Financial companies are planning to do more than react to reform
rules, and investment in the capabilities of a digital solution to meet sustainable
program strategy and follow. As traditional sources of income struggle to remain
profitable, company turning digital, not only as a way to increase profits and
performance effective in operation, but also a platform for companies to develop

products and additional high margin. These market trends are based on the transition
from analysis based on models for analysis of self-service approach real time, which
means information is always present and available, especially in the area of Services
involve customers, cross selling, fraud detection and risk management. Companies at
the forefront of the digital trend, which benefits recognition of more customers and
achieve more productivity, and modeling business (Half, 2015). As the service sector
heavily relies on their customers, thus digitization allows the firms to reshape the
ways in which they do interaction with their customers. The service sector focus on
the social media strategies, big data analysis and digital marketing for fostering
customer relations and with the adoption of digitization the sales prices of the service
sector is redesigned with new sales channels becoming available. The impact of
digital on different stage of economic development company run, Service sector and
increase chances of winning the job of scanning, but benefit less production and
productivity. In economic development, GDP growth figures than it will work.
Adoption of rapid technological digital market emerging is evident in global trends in
connectivity, such as penetration of mobile phones, Internet and network expansion
(Dai & Yuan, 2013). Banking sector has been forced to change their business
operations in the last few years due to crisis and the changing regulatory policies.
There is a huge influence on the relationship between revenue and costs and with the
move to digitization it will offer the opportunity to banks to easily manage their
information and data. There are number of new payment systems that has been
introduced3 by the banking/financial sector such as mobile payments and e-commerce
which has emerged in recent years (Misha, 2015). New technologies are helping the
banking sector to shape the future and it will be the key success factor for the service
sector. Technology had rapidly taken the service sector and digitization is real rather
than automatically, but you must include new ways to acquire, process, and act on
large volumes of data. The property management, vendor and marketing budget
requires access to data sets larger will have the opportunity to market trends and
customers to be productive. Regulations, however, require transparency and the need
for data access and quickly across the enterprise. This, in turn, the need for analysis of
strengths in the fields of matching patterns and relationships and mining data to
discover the needs of the market and customers are satisfied. The service sector such
as the banks has launched IT transformation and operations programs to deliver
process efficiencies, operating models, accelerate new product innovation and to

enhance their service delivery (Bakare, 2015). Digitization has changed the service
sector and industries under this have moved forward in the future with improved
business operations and offering new technological related products. Therefore, it can
be clearly stated that digitization in the service sector is the key for success and it will
expand in the future as well.

CONCLUSION:
The research concluded that digitalization has been on rise in terms of its adoption by
the industries and it can be determined as the key to success due to its potential
benefits. Therefore, it can be summed up that digitalization is the key to success for
future business and its effective and continuous implementation and adoption will
improve all the activities in the business sectors.

REFERENCES:
Bakare, S. (2015). Varying Impacts of Electronic Banking on the Banking Industry. J
Internet Bank Commer, 20(2).
Consulting, (2015). Are Manufacturing Companies Ready to Go Digital?. [online]
pp.1-10. Available at: https://www.capgemini-consulting.com/resource-fileaccess/resource/pdf/Are_Manufacturing_Companies_Ready_to_Go_Digital_.pdf.
Credit Suisse, (2015). Digitalization:. [online] Available at: https://www.creditsuisse.com/au/en/news-and-expertise/economy/articles/news-andexpertise/2015/02/en/digitalization-banks-are-at-a-crossroads.html [Accessed 24
Nov. 2015].
Dai, M. and Yuan, Y. (2013). Product differentiation and efficiencies in the retail
banking industry. Journal of Banking & Finance, 37(12), pp.4907-4919.
Misha, E. (2015). Regulation of Acquisitions Activity in Banking Industry Albanian
Banking System. MJSS.
Trpovski, Z. (2012). Technical aspects of the digitalization of media. Kultura, (135),
pp.205-216.
Truong, J. (2014). The Digitization of Financial Services. [online] strategy+business.
Available at: http://www.strategy-business.com/blog/The-Digitization-ofFinancial-Services?gko=e7216 [Accessed 24 Nov. 2015].
Yeo, C. and Carter, S. (2011). Predictive emotional intelligence and its relationship
with academic success. International Journal of Economics and Business
Research, 3(5), p.479.
Zhou, J. (2013). Digitalization and intelligentization of manufacturing industry. Adv.
Manuf., 1(1), pp.1-7.

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