The Implications of Digitalization on the Firm’s Value Creation, Task and Capture

Digitalization suggests using digital technologies to improve a company’s business procedures, products and services. While there are many positive aspects to www.cloudycrowd.net/2021/12/06/4-types-of-innovative-business-models/ digitization, in addition, it poses a number of problems.

Advantages of digitization

Digitization may improve a company’s internal operations by eliminating manual tasks and reducing costs through automation. In addition , it can help a firm gain clients or grow its existing customer base.

Disadvantages of digitization

A key pitfall with digitization is the fact that that digital information can be easily changed and erased. This can bring about errors and misunderstandings.

In addition , a company can become overly reliant on technology. This can result in a reduction in human know-how and decrease production.

The emergence of your digital overall economy has led to an elementary shift in how firms produce and market their products and products. In contrast to classic industries, which usually rely on expense and labor resources for goods and companies, a digital economy operates with effectiveness.

Hence, it is important to have a obvious vision by what the digitalization of a business will require and apply it logically.

The ramifications of digitalization on a firm’s value creation, proposition and capture had been investigated in two textured industries, the media and automotive industry, employing qualitative empirical data collected coming from 12 important informants. A conceptual setting up based on dynamic capabilities was used to shape the empirical study (see Figure 1).