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The Implications of Digitalization on the Firm’s Value Creation, Proposition and Catch

Digitalization indicates using digital technologies to enhance a company’s business procedures, products and services. During your stay on island are many positive aspects to digitization, in addition, it poses a number of conflicts.

Advantages of digitization

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

Negatives of digitization

A key drawback to digitization is the fact that digital information may be easily modified and deleted. This can cause errors and misunderstandings.

In addition , a company may become overly reliant on technology. This can lead to a lack of human proficiency and slow production.

The emergence with the digital economic climate has led to an elementary shift in the way firms produce and market many and expertise. In contrast to traditional industries, which in turn rely on expense and labor resources for many and providers, an electronic digital economy operates with productivity.

Hence, it is important to have a crystal clear vision about what the digitalization of a provider will implicate and put into action it smartly.

The effects of digitalization on a firm’s value creation, proposition and capture had been investigated in two eye-catching industries, the media and automotive industry, applying qualitative empirical info collected from 12 essential informants. A conceptual placing based on dynamic capabilities was used to frame the scientific study (see Figure 1).

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