Digitalization is commonly characterized as the only ‘silver lining’ of the otherwise tumultuous period since 2019. Due to lockdowns compelled by the Covid-19 pandemic, many organizations and industries have had to suffer losses or even closure but those that embraced technology have managed to remain afloat. In order to make life easy for organizations and employees, tools and technologies have been introduced since to help make the transition smoothly from the physical to the digital realm.

Isn’t digitalization expensive?

It is a common misconception that making the shift to digitalization is costly. The opposite is actually true, in most cases. Going from physical to digital saves time, energy and improves efficiency, speed of delivery & accuracy of output. Working from home is a win-win situation for employees, employers as well as clients owing to the fact that obtaining or delivering the services, more often than not, does not necessitate travel or contact.

One such simple example for a platform that does more for less is DigiEx. It is an app which can be downloaded for free from App Store or Google Play that enables complete automation of supplier and employee payment workflow management within organizations. The app enables central monitoring and authentication of transactions making the process doubly efficient and convenient when compared to conventional manual processes especially under present circumstances.

DigiMed and DigiEye are two similar applications that use technology creatively to ensure continuity of businesses in the insurance industry. DigiMed is a service that helps to accelerate processing of medical claims while DigiEye is an app that replaces the conventional motor claims process with a far more efficient mechanism whereby the location of an accident can be picked up via GPS, damage assessed through a live stream and claim processed within a few hours as opposed to several days, if not weeks, which was the standard hitherto.

All three apps are encrypted for safety and act as digital archives for documents and pictures submitted digitally. The process in all three cases is entirely paper-free which is a welcome improvement. The services have a pay-as-you-go model thus enabling businesses to only pay for the transactions executed.

Will “normalcy” render digitalization obsolete?

When or if “normalcy” will be restored is a question even experts have yet failed to conclusively find the answer to. A recent article in the Harvard Business Review indicated that the US economy had rebounded faster than anyone expected while other developed countries struggled to shake off the pandemic-induced slump. The article goes on to state: “Digitalization is the key to modernization. That is why 85% of companies accelerated their digital transformation programmes last year.”

It is safe to assume that digitalization will continue to be the ‘new normal’ in the post-pandemic context. In 2022, spending on digital transformation (DX) is projected to reach 1.78 trillion U.S. dollars. Between 2020 and 2023, direct digital transformation investments are forecast to amount to almost 7 trillion U.S. dollars according to Statista.com.

The principles of digitalization also align with present-day global priorities such as minimizing carbon emissions & environmental conservation. Going paperless eliminates the need for cutting trees while not having to commute is better for the environment as it serves to improve air quality. The Conversation, an Australian publication, observed: “while these measures (restricted travel) have caused economic hardships, our study shows that they have also dramatically improved air quality; air pollution in urban areas declined up to 45% during lockdown with air quality improvements persisting even after lockdown measures were lifted.” It is therefore understood that digitalization can help ‘cut costs’ in more ways than just monetarily.

Digital transformation spending worldwide 2017 – 2024 (in trillion US dollars)

Sources:
https://hbr.org/sponsored/2021/08/digitalization-will-be-key-to-building-a-more-vibrant-u-s-manufacturing-sector
https://www.statista.com/statistics/870924/worldwide-digital-transformation-market-size/
https://theconversation.com/covid-19-lockdowns-improved-air-quality-in-some-cities-shedding-light-on-how-to-curb-pollution-158356#:~:text=While%20these%20measures%20have%20caused,after%20lockdown%20measures%20were%20lifted.