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What is the Digitalization

According to research firm gartner, digitization is “the process of changing from analog to digital format.” This process creates digitized data “without any different-in-kind changes to the process itself,” which can then be used for business purposes.
That’s where digitalization comes in, which happens when “digital technologies [are used] to change a business model and provide new revenue and value-producing opportunities.” Take counterfeit goods, for instance. Previously, companies had to rely on investigation agencies, legal counsel, local sources, distributors, and law enforcement in order to keep track of and monitor counterfeiting.

Why Digitalization?

As you probably know, product deliveries tend to follow a very standardized process. The aforementioned pwc report outlines it as such:
• The marketing team will analyze consumer demand, and based on their findings, attempt to predict sales for the coming period
• With those numbers in mind, manufacturing will order raw materials, components, and parts to prepare to meet that demand
• The distribution team will account for upcoming changes in the amount of product coming down the pipeline, and update consumers as to when they can expect their deliveries
• If all goes well, the gap between demand and supply at every point in the system is as small as humanly possible
Naturally, the report continues, this “rarely happens,” largely due to the lack of transparency between teams and departments. None of the “links in the supply chain really understand what any other link is doing, or needs.”

  • Things that collect information and then send it.
  • Things that receive information and then act on it.
  • Things that do both.