Digitalization of Business Processes – What Is It and Why Does It Matter?

Digitalization of processes, meaning the conversion of paper documentation into electronic form, has become an integral part of the business strategy of companies worldwide. What exactly is process digitalization and how does it work? How does digitalization differ from automation? And what benefits does digital transformation bring? Here are the answers!

What Does Digitalization Mean?

The process of digitalizing documents involves converting resources in paper or analog form into a digital format. This solution enables storing, monitoring, and editing data at any time and from any place.

Digitalization allows for:

• converting documents into electronic versions,
• archiving without occupying physical space,
• easy access from anywhere and real-time data sharing,
• faster decision-making and quicker responses to market changes,
• reducing the risk of errors and increasing employee efficiency through easy access to information.

Digitalization vs. Process Automation – Are They the Same?

Process digitalization is often used interchangeably with process automation, which may lead to misunderstandings. Although the two concepts are related and often occur together, they have different meanings:

Digitalization means transforming the form — converting traditional, paper documents into digital versions.

Automation means introducing tools that automatically perform repetitive tasks. It becomes possible precisely because of prior digitalization.

Digitalization of processes is a necessary prerequisite for effective automation — without digital technology, automation tools cannot perform their tasks.

How Does the Digitalization of Processes Work?

The digitalization process consists of several stages. What characterizes each step of the transformation into digital form?

• Analysis of existing processes – identifying processes and their paper documents that can be converted to digital format.
• Document conversion – transferring paper documents into digital form. A common approach includes scanning documents into PDF and then using OCR technology to convert them into editable formats (e.g., DOCX, XLS).
• Integration of digital solutions – implementing a system for document management and creating processes that automate and monitor electronic document flow.
• Employee training – training staff to effectively use the implemented digital solutions.
• Monitoring and optimization – analyzing the effectiveness of implemented solutions, identifying bottlenecks, and making necessary improvements.

Which Processes Should Be Digitalized First?

In the digital transformation process, it is best to start with solutions that bring the greatest benefits in a short amount of time. These include:

• Document and financial workflow – digitalizing documents such as invoices, orders, or sales agreements streamlines information flow, reduces errors caused by manual data entry, and speeds up accounting processes.
• Document archiving – digitalizing accounting, legal, or HR documents reduces the risk of data loss and allows quick access to archived data.
• Ticket handling – a ticketing system for internal or customer requests increases transparency and reporting. (In our other guides, you will learn what a ticketing system is and what benefits its implementation brings.)
• Asset control – asset management tools enable efficient handling of equipment and licenses. In this case, an IT Asset Management system works perfectly.

Benefits of Digitalizing Business Processes

Implementing digital solutions provides a wide range of benefits:

• Time and cost savings, as well as reduced risk of errors, thanks to the elimination of manual document processing.
• Increased work efficiency due to access to data from any location.
• Faster and more accurate decision-making thanks to real-time information sharing.
• Ensured compliance with procedures through the ability to monitor and control document workflow.
• Improved collaboration with clients and partners through greater information transparency and the ability to respond quickly.
• Environmental benefits through the use of eco-friendly solutions that reduce paper consumption.
• Potential for further development by paving the way for implementing additional innovative technologies that require prior digitalization.

Challenges and Risks of Digitalizing Business Processes

The digitalization process comes with several challenges, including implementation costs, system integration needs, and employee resistance to change. For digital solutions, it is also important to consider risks related to security vulnerabilities or integration issues. Legal aspects, such as GDPR compliance, must also be taken into account.

Tools for Digitalization – How to Choose the Right Ones?

Selecting the right tools is crucial for effective digitalization. In addition to the previously mentioned systems—such as a ticketing system, Asset Management, electronic document workflow systems, or OCR solutions—it is also worth considering tools such as the ITManager remote computer control program, which enables efficient management of equipment and documentation without the need for physical access.
The most important criteria for selecting tools include: compatibility with existing infrastructure, scalability, costs, level of support, and integration capabilities.

Can Digitalization Be Considered a Competitive Advantage?

Digitalizing data is undoubtedly an element of a strategy that enables building a competitive advantage. Electronic document workflow supports better decision-making and increases operational efficiency, which strengthens relationships with customers and partners. Digital solutions also help shape the image of a socially and environmentally responsible company.
Digitalization additionally enables a smooth transition to further stages of organizational transformation based on additional innovative solutions. All this provides the company with the tools needed to respond effectively and quickly.