Effects of Digitization on Companies : Part XIV (END)

This part is continuation of part XIII. E-commerce is already proving to be a growth driver for parcel shipping. With the increasing and widespread realization of the Internet of Things, there are prospectively even larger shipping volumes to be expected. Networked devices can automatically trigger orders and thus logistical requirements. Changed storage and transport processes as well as new delivery relationships on the last mile are the results of this digital transformation.

New business models in the logistics market include same-day delivery or forecast models to optimize routes, cargo spaces and the choice of means of transport. In addition, there is an increasing flood of data, which brings with it the requirement to create a balance between the production of data and its useful interpretability. However, the sector’s alignment with the coming changes is poor. Analogue processes such as paper-based information exchange or the telephone as the primary communication medium show clear weaknesses about digital change. In one out of five logistics companies, 80% of the business processes are mostly digitally organized and free from media discontinuities. The relationship between digital and paper-based information is also poor.

New digital business models are also not in focus. Every fifth logistics company has high-priority projects on the agenda. The other part is less ambitious. A quarter of logistics companies have nothing to do with new digital business models. The investment plans reflect this defensive attitude. Almost two out of three companies planned little or no funding for the digital transformation. Only 17% invest ambitiously. Only 18% of companies pursued a digitization strategy. For everyone else, not even the responsibilities have been clarified.

 

Conclusion

 

In the course of digitization, all companies have to rethink their products, sales markets and activities. Due to the simplified expansion of business on an international level, digitization leads to ever-increasing competition. This also leads to more and more transnational corporations operating worldwide. The e-business models also put stationary retail under pressure. More and more shops have to close due to the increased online offers. However, the increasing digitization of activities and documents within companies also means that companies have to think about IT security and cybercrime.

The more companies have digitally stored or controlled digitally, the more damage hackers can cause. Furthermore, the trend can be recognized that more services and products are offered as a service. Instead of buying the product, it is provided as a service by the provider. The customer can then access it via the Internet. A term that has gained importance in recent years is the Internet of Things, i.e. the individual electrical devices, for example in a household, can communicate with one another and provide the owner with additional information. This allows companies to differentiate their products from the rest of the market. In companies, this digital collaboration means that productivity is increased and human intervention is then no longer necessary. This automation of processes is expected to lead to many low-paid and low-skilled workers will lose some of their jobs in the next 10 to 20 years.

It is therefore essential that companies train and educate their employees because many are not aware of the effects digitization has on their workplace. The problem, however, is that management often comes from a traditional area and does not appear as a digital leader, which means that the companies recognize trends too late and thus lag when it comes to digitization. what effects digitization has on your workplace.

Sooner or later, all industries will be affected by digitization in the future. New technologies will mean that every company will have to ask itself whether work processes can still be optimized, whether products and services are up-to-date and meet customer requirements or whether new trends can be identified within the industry. The risk of losing the connection and thus market share and sales by oversleeping a trend will continue to increase. Employees should be aware that their work will also change, as it can be expected that a lot of work can be eliminated through automation. Early training should therefore be considered. Every workplace will be influenced by digitization in some way. Due to the many technical innovations and the rapid change in demands, companies must constantly develop their products and react even more flexibly to market changes in the future. As a result, the ability of companies to plan for ever shorter periods, and thus the future for all companies, is more unclear than ever.

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