Assignment On The Trend Of Digitalization In The Modern Business

Introduction of Digitalization in the Modern Business

Digitalization in the modern business has undeniably turned out to become one of the most active fields within the business world. The innovation progresses in the last current decades around digital technologies have been presenting amazing appearances. So far, in order to be aligned with the current progress in digital technologies have appeared to be quite easier for the companies than it really is. With the fact that there is a range of potentials designed for the marketers to cooperate with the environment has occurred to get growing and evolving, it is definitely a great challenge for them to figure out the ideal technique to perform their marketing activities. On the one side, it is vital enough to make sure and remains to be up-to-date with the new expansions. While on the other side, in order to trail the accurate corporate foresight about the future is even further essential. Participating in digital technologies today along with the activities of tomorrow might eventually lead a company toward its success if its corporate foresight were accurate.

In addition to this, we can assume that Digitalization has been appearing in every single field of our lives: education, social networking, and business, along with the fact that nearly every single company in these modern days acquires its official website. Moreover, in the context of business processes, the appearances of Digitalization can be seen from the marketplaces, logistics, as well as in accounting. As a consequence, the recent age has turned out to become a “digital era,” where digital technology enables each company to complete all the tasks faster and further accurate (Karim & Wassim, 2019).

This report will discuss the definition of Digitalization and the corporate foresight along with the signals, the possible impacts of Digitalization, as well as the PEST analysis and horizon scanning in the context of Digitalization trends in the modern business.

Definition of Digitalization in the Modern Business

 Digitalization is actually described as an action when a company utilizes digital technologies, with a purpose to modify the model of its business activities, as well as providing innovative revenue and open up the opportunities for the creation of value. In simple words, digitalizing a company means providing a competitive advantage by performing business activities better, faster, and, of course, cheaper than its other competitors (Urbach & Röglinger, 2018). There are various benefits derived from the trend of Digitalization in modern business such as mentioned below:

 Digitalization enables in streamlining a country’s security and intelligence structures, along with its infrastructure and economy factors as well

 Digitalization could facilitate international trade and settlement

 Digitalization has the capability to directly connecting the buyer and seller

 Digitalization practices secure the companies against the malpractices such as money laundering

Definition of Corporate Foresight of Digitalization in the Modern Business

 Foresight could be defined as a determined process of growing knowledge regarding the future of a specified unit of analysis which is intended at an action in the setting of both private and public making, planning, and managing. Foresight is, every so often, turned out to become an involved, elaborate and cooperative process. A corporate foresight gives the capability for a company to identify, acknowledge, and then take impactful activity in the way to the change in the company’s direction. A corporate foresight has also converted to be more than only an alternative method. Instead, a corporate foresight has been considered as a crucial one for a company to survive in the ever-evolving technologies along with the ever-evolving market places in these modern days. Simply put, corporate foresight enables a company to move aligned with the changes. Corporate foresight is actually designed to explore more opportunity spaces, which means that if a company could change its perception and following the flows of the trend in the business, then that company will have a better opportunity of the trend progression itself (Ruff, 2006).

For this reason, corporate foresight is implemented by a number of companies with the main purpose that it would definitely help the companies to move away from path reliance, assist the decision-makers to describe bigger progressions of action, as well as eventually enable better performance of the company itself. The main keys in the corporate foresight are included:

 Perceiving – this is the step where a company needs to build lead time in the direction of its competitors in discovering of change

 Prospecting – this step is where a company creates an intuition benefit by acknowledging both change as changes new opportunities

 Probing –finally, this is where a company will put the focus on reintroducing its competitive advantage all through the product development as well as speed repetitions (Rohrbeck & Gemünden, 2011)

Technologies are, indeed, developing speedily, and the customer requirements will be consistently changing. For this reason, companies need to realize that the future is redrafted every single day. As a consequence, the companies need to continue making reconsideration as well as implementing and adapting their strategies, otherwise, they would be left behind in the progress. Despite the fact that the typical futurology receipts a wide-ranging view at society, the methods included in “corporate foresight” provide real devices to be implemented for the expansion of a sustainable corporate strategy.

The term “corporate foresight” increases a number of queries meant for the companies in endeavoring to “remain catch-up” in this progress. However, the main focus was specifically on the subjects of:

 Why is it considered to be quite fundamental to prepare the business for the future?

 What are the strategic modernization management devices and approaches of futurology that the companies ought to be focused on?

 How does a company manage with and tackle down the continuous external change?

 How can the companies progress a proper strategy with the main purpose to strengthen their position in the market place for the future?

The Signals in Corporate Foresight of Digitalization in the Modern Business

Various international corporations have been using the corporate foresight and make it as a portion of their strategy in risk management, also applied for the analysis of evolving issues, as well as to recognize wild cards (activities with a low prospect, possibly deliver high-impact risks). The European Commission has defined the corporate foresight as the methodical viewpoint which has its main purpose to identify initial signs of possibly significant expansions. These might be weak (or initial) signals, trends, wild cards or else further progresses, determined difficulties, risks along with the threats, counting as well themes at the boundaries of recent rational that challenge past expectations. Horizon Scanning could be totally explorative as well as open or else be an inadequate exploration for information in an exact area based on the purposes of the corresponding schemes or else tasks. Horizon Scanning pursues to measure what is persistent, what might get modified, and what is continually evolving in the time horizon under the analysis (Palomino, et al., 2012).

PEST Analysis of Digitalization in the Modern Business

In every kind of business, there is a need of PEST analysis, which describes the situation of the business relevant to the external business environment. The PEST analysis examines the external factors, which include Political, economic, social, and technological factors of a business that have an impact on the position of the business. It identifies the different factors which affect each other with different impacts. Digitalization is harnessing, which is used to deal with the products and services done with the help of the internet or server network. The market used some digitalization sources in the market, such as E-mail, social media, advertisement, and websites. In today’s world, it is not sufficient for the business to stand without an analysis of external forces and strategies. These are the compulsory factors that are used to getting success. PEST analysis is explained below in the digitalization of the modern business:

 Political factors of Digitalization in the Modern Business

Any business that is dealing with marketing and digitalization of the products and services in the market can earn a profit if it analyzes the political condition of the country or region in which they are working. If the political conditions are not stable in the market, there are fewer chances that the business will go for marketing as in this situation, there may be a high cost to bear for the firms. Social media is considered a basic tool for the marketing of the product in the public so they could get awareness about the products and attract these products. Political factors are examined to check that how will the business flourish in these given circumstances. When the political conditions are stable in the country, there are more chances to get business development, and businesses prefer to invest their funds in marketing. In this way, the digitalization could prevail with the stability in the political conditions in the market (Gupta, 2013).

 Economic factors of Digitalization in the Modern Business

Economic factors are from home to country expenses such as taxation, which is paid by the public to government. If the economic conditions are suitable for investment in digital marketing, people will invest more in digitalization and focus on different strategies that should deal with the issues which are prevailing in the environment. It explains the economic disorder of that country and what economic factors can affect the digitalization in modern business. Economic conditions are analyzed according to the environment in which it is being worked. The digitalization of the business could help the business to retain the reasonable and bearable cost of the business which create sustainability in the business. These factors could relate to revenue, income, worth, and other circumstances that are related to economic conditions. Economic conditions are included currency rate and inflation etc.

 Social factors of Digitalization in the Modern Business

The social circle in every business affects a lot with respect to connecting with the people as they are connected for some purposes in society and social affections. The digitalization of the business helps to make business more social as they are ready to connect you with different people. There should be mandatory to analyze the social factors if your business is connected to society and people have a great impact on it. In digitalization of the business, there are more chances to get the services of social sites such as email, Facebook, Twitter, and other social sites. How many people are using these sites and how it will be helpful for the businesses to achieve the benefits for the business by getting the services of these elements in the market. It also includes the business size and volume and the comparison of the business which is being worked in the existing market (Karmys & Bastaubayeva., 2018).

 Technological factors of Digitalization in the Modern Business

Technological factors are the most important factors in the market which are working in the digitalization of the business. It is the technology that gives innovation to businesses to work as digital. There are different factors that are technologically competing with competitors in the market. For example, the apple company is enjoying the privileges of brand image in the market just because they have advanced technologies in the production process, which help them to lead the market. The development of the business in the digitalization is depending on the technology which is used to innovate the products. Server networks such as the internet and other factors are providing opportunities to get the competition in the market. The payments of these works could be gained in the reward by getting the services of the internet. Technological factors are the external factors that affect the digitalization of the business and are an integral part of the business. These factors could be used as the presence of technological factors in the market again.

PEST analysis gives a simple framework that divides the environmental factors in the as per the limited controversy of the strategic performance of the business. Political factors are examined to check that how will the business flourish in these given circumstances. When the political conditions are stable in the country there are more chances to get the business development and businesses prefer to invest their funds in marketing. Economic conditions are analyzed according to the environment in which it is being worked. The digitalization of the business could help the business to retain the reasonable and bearable cost of the business which create sustainability in the business. There should be mandatory to analyze the social factors if your business is connected to society and people have a great impact on it. It is the technology that gives innovation to businesses to work as digital. There are different factors that are technologically competing the competitors in the market (Rønnau, 2010).

The Horizon Scanning of the Digitalization Trend in the Modern Business

 Corporate foresight and Horizon Scanning are, every so often, observed as equal perceptions along with undistinguishable representations and determinations. However, they could be totally dissimilar activities, whether in and for any type of potential activity in addition to the planned purposes. In the context of Scanning, there will be no argument as well as no strategy developing. On the other hand, Foresight described as further process‐oriented and it, at all times, consists of a Horizon Scanning stage. Horizon Scanning is slightly created at the foundation of any forward-viewing action and could also be an automatized exclusive method designed for recognizing “things to come” ‐ which, every so often, defined as the identification of innovative science & technology along with delivering some pieces of information around these things. In addition to the PEST analysis, this report also utilizes horizon scanning to take a comprehensive view of the trend of digitalization in the modern business.

The Horizon Scanning Presentation of the Digitalization Trend in the Modern Business

 Purpose

Digital interruption is a substance intended for innovation along with the business transformation, as well as activities should get improved at identifying interruption as or else before it will have emerged, integrating occasions for technology innovation as well as innovative competence from a company into digital along with the Information and Communication Technology or ICT plans and strategies. This has been approved frontward into forecasting the business activities with a purpose to recognize the possible changes in digitalization along with interruptions that might be able to impact the business in the future.

 Audience of Digitalization in the Modern Business

This Horizon scanning could include some specific roles such as:

 Digital and ICT strategic planners

 Business analysts

 Personnel planners

 Company architects

 Interruption (Digitalization) of Digitalization in the Modern Business

The information attained in horizon scanning could be used to assess the impact of interruption across the business’ elements, industry as well as society. The horizon scanning here focuses on identifying the trend of digitalization that impacts the modern business. The elements of interruption in the context of Digitalization in modern business can be seen from the figure below.

 Identify of Digitalization in the Modern Business

The future trends in the context of digitalization have been identified around both the positive and negative impacts of the term digitalization in the modern business.

 Prioritize of Digitalization in the Modern Business

The next step of this foresight involves prioritization intended for determining and also defining the possible impact of the interruption (digitalization).

 Respond of Digitalization in the Modern Business

This step is around understanding what capability has been delivered by the trend of digitalization in the modern business, and how it has transformed into a business capability (Palomino, et al., 2012).

The Possible Impacts of Digitalization in the Modern Business

 Digitalization has created a massive impact on the working as well as the growth of modern businesses these days. Along with the better applications of Artificial Intelligence or AI and other outstanding technologies, it is quite potential to accept the impact of the business landscape that might completely get changed. Throughout the past few years, digital technologies have outshined intensely. Not just the fact that the companies have been digitizing the method they purpose, Instead, it appears also in their products or services which have been digitized and makes the society to become further independent and managed by digital technologies.

 Despite the fact that digitalization which is supported by technology has created some great new opportunities meant for the companies, however, digitalization has also made some changes in the context of organizational structure as well as in the process of the decision-making process. Every so often, the employees and their capabilities also shift which appeared to be an important social impact that the company should anticipate. This business revolution has carried with it glory in various fields of the modern business, even though others are experiencing a specific downfall, in which they are incapable to identify where to place the asset or else make innovative decisions. In fact, it has appeared that technology itself has been updating as well as adjusting itself in the direction of both demands and requirements of every single era in the centuries (Boone, Kurtz, Khan, & Canzer, 2019). For this reason, there are some possible positive impacts along with the negative impacts in the context of Digitalization trends in the modern business.

The Possible Positive Impacts of Digitalization in the Modern Business

 Digitalization increases the productivity

Digitalization in business enables the companies to appraise the entire productivity processes better, analyze deeply every single step as well as identifying all the problems, challenges, and incompatibilities accurately. For example, digitalization of the company’s documents, the disappearance of time barriers which resulting into resources optimization, the rationalization of the entire production as well as commercialization processes. Digitalization is something that enables the company to be more effective and efficient. In fact, a report has mentioned that the companies that have encouraged and embraced Digitalization have presented a great efficiency improvement by 39%.

 Digitalization reduces the operation costs

Digitalization has been approved in reducing the operating costs to 20% and also increase the business’ efficiency. In addition to this, Digitalization has also enabled efficient management of cost, which simply means a further effective management of production and sale processes as well. Furthermore, Digitalization has also facilitating the companies to form innovative business models along with profit sources.

 Digitalization improves the experience of customer

Digitalization supports the company in providing a greater experience of the customer and also improving excellent communication with the customers. This has approved by how the e-commerce businesses are providing their services for 24 / 7.

 Digitalization opens the new market possibilities

The trend of digitalization has also facilitating the companies’ movement toward the new markets along with the proper communication strategy and also the accurate logistics.

 Digitalization facilitates the internal processes incorporation

Digitalization facilitates the companies’ codification along with the organizational development. The entire process will surely increase work output consistency. In addition to this, digitalization will also facilitate the objectives alignment between the employees, customers, and the company itself (Osburg & Lohrmann, 2017).

The Possible Negative Impacts of Digitalization in the Modern Business

 Digital communication might lead to a miscommunication

Digital communication is typically defined as a type of communication using the latest technology devices. Now we have to take a look at the fact that even the most high-quality devices have the capability to make an error. For example, there might be some parts of the text missing in an email. In addition to this, since we are unable to see the face expression and hear the tone of our business partner, then it is a great possibility to create a miscommunication. Even though there is also an option of video calls which are surely better than text, but still, there might be various non-verbal signals to be lost in the conversation.

 Digitalization might tear the employees apart

In the traditional company, in the context of the Human Resources Department, for example, digitalization can modernize various benefit solutions, store as well as scanning the applications on the way to proficiently screen the forecasts. On the other hand, a high-tech application process is infrequently considered as an acceptable and suitable substitute designed for a face-to-face meeting to measure better improvements from the employees’ performance. The fact now is that technology has been consuming an even further reflective negative effect on social comfort. Even though it has the capability to enable everyone to involve in relationships across distances as well as time zones, but now and then, it is good to have face-to-face relationships amongst the employees to create a strong connection. For this reason, Digitalization might instead tear the employees apart.

 Digitalization might require a huge budget

Digitalization will require the companies to acquire technological devices such as software and also the latest computer systems. For this reason, the companies should also prepare for the budget of training the employees, in addition to maintaining and upgrading the technological devices. The amount of budget for these requirements is definitely a huge one.

 Digitalization might destroy the jobs

Despite the fact that manufacturing technologies might acquaint with effectiveness on the way to business performance by speeding up some of the business processes that the company might otherwise have to accomplish manually. In fact, assembly lines have the capability to progress productivity by combining processes as well as affecting further speedily than the employees could do. On the other hand, substituting employees with machines might also introduce some new difficulties. In addition to this, huge-scale automation also has the capability of creating a number of social issues by removing the employees out of their jobs (Oncioiu, 2019).

Recommendations of Digitalization in the Modern Business

Now the big question might be; How can companies be prepared for the future? At this point, the companies need to build up shared future interpretations, as well as observing things that are driving the innovation efforts in the company itself. In fact, this corporate foresight must turn out to become a part of the company’s routine, which is completely unified into planning as well as decision-making. Some recommendations regarding the corporate foresight and how the companies can be prepared for the digitalization foresight are:

 Investigate deeper than the competitors within the same market industry

 Create and develop shared future viewpoints

 Train the key employees on systems rational along with the trend audits

 Create proper budgets for adjusting the digitalization trend

Conclusion of Digitalization in the Modern Business

 The trend of digitalization in the modern business is aligned with the fact that technologies are, indeed, developing speedily, and the customer requirements will be consistently changing. For this reason, companies need to realize that the future is redrafted every single day. As a consequence, the companies need to continue making reconsideration as well as implementing and adapting their strategies, otherwise, they would be left behind in the progress. The corporate foresight methods that have been conducted in viewing this trend are PEST and horizon scanning. Despite the fact that digitalization which is supported by technology has created some great new opportunities meant for the companies, however, digitalization has also made some changes in the context of organizational structure as well as in the process of the decision-making process. For this reason, we can conclude that there are both positive and negative impacts that derived from the trend of digitalization in the modern business.

 However, in order to adjust to the modern business, it is important for the companies to implement the term of digitalization and put it into daily business practices. At this point, the companies need to build up shared future interpretations, as well as observing things that are driving the innovation efforts in the company itself. In fact, this corporate foresight must turn out to become a part of the company’s routine, which is completely unified into planning as well as decision-making.

References of Digitalization in the Modern Business

Boone, L. E., Kurtz, D. L., Khan, M. H., & Canzer, B. (2019). Contemporary Business. John Wiley & Sons.

Gupta, A. (2013). "Environment & PEST analysis: an approach to the external business environment. International Journal of Modern Social Sciences, 2(1), 34-43.

Karim, M., & Wassim, A. (2019). Business Transformations in the Era of Digitalization. IGI Global.

Karmys, G., & Bastaubayeva., A. (2018). SWOT and PEST analysis of HR-processes digitalization in the public service of Kazakhstan.". Public administration issues, 1, 140-163.

Oncioiu, I. (2019). Improving Business Performance Through Innovation in the Digital Economy. IGI Global.

Osburg, T., & Lohrmann, C. (2017). Sustainability in a Digital World: New Opportunities Through New Technologies. Springer.

Palomino, M. A., Bardsley, S., Bown, K., Lurio, J. D., Ellwood, P., Holland-Smith, D., . . . Owen, R. (2012). Web-based horizon scanning: concepts and practice. Foresight, 355-373.

Rohrbeck, R., & Gemünden, H. G. (2011). Corporate foresight: Its three roles in enhancing the innovation capacity of a firm. Technological Forecasting and Social Change, 231-243.

Rønnau, P. (2010). "Pest control system. Washington, DC: U.S. Patent and Trademark Office.

Ruff, F. (2006). Corporate foresight: integrating the future business environment into innovation and strategy. International Journal of Technology Management , 278-295.

Urbach, N., & Röglinger, M. (2018). Digitalization Cases: How Organizations Rethink Their Business for the Digital Age. Springer