Implementing Digitalisation Wisely
- An effective idea not just since computers
- An ongoing challenge for business and politics
- Conservative: Don't mindlessly throw the old overboard
- Antifragile: using risks to your own advantage
Digitalisation has undoubtedly enriched our lives, but it also harbours a multitude of risks. Cyberattacks, data breaches and dependence on digital systems are just some of the challenges we face. Anyone who misses out on trends, sees digitalisation as an end in itself or misjudges risks will quickly find themselves in a precarious situation. Intelligent strategies to protect against these risks are crucial in order to reap the benefits of digitalisation without neglecting protection.
Definition of Digitalisation
The term "Digitalisation" refers to the conversion of information into a discrete, quantifiable form that can be interpreted and processed by machines or systems. Today, this is usually done through the use of technologies that capture, store, process and transmit data in electronic form, and in the past through mechanical systems such as the abacus or punched tape in Jacquard looms that represent and manipulate information in a physical form. Digitalisation plays a crucial role in various areas, from the management of information to the automation of processes, and has a profound impact on our society, economy and technology.
Example
A logistics company manages its supply chains and inventory records manually on paper. By digitising these processes, the records, orders and logistics data are transferred to a digital platform or an enterprise resource planning (ERP) system.
By implementing digital solutions, workflows can be automated, data can be recorded and processed in real time and information can be centralised. Orders can be processed electronically, resulting in faster fulfilment and fewer errors. Stock levels can be monitored and updated automatically, optimising inventory management processes.
Digitalisation enables the company to make informed decisions based on real-time data, identify bottlenecks, shorten delivery times and improve the efficiency of the entire supply chain. It also reduces manual errors and increases transparency along the logistics chain. This example shows how digitalisation can change traditional paper-based processes in business and make them more efficient.
The History of Digitalisation
Many people think digitalization is a phenomenon of modern times. Yet, the history of digitalisation is a fascinating path that begins well before the era of modern computers. From simple mechanical devices to state-of-the-art information technologies, humanity has undertaken a long journey to transform and process data into digital formats.
The pre-computer era
Before computers found its way, people used various mechanical tools to process and store data. Here are some important milestones:
- Abakus: One of the earliest computing aids used in ancient times. The abacus was a mechanical calculating instrument used for basic mathematical calculations.
- Recalculation slide rule: In the 17th invented, the slide rule was another mechanical device used for multiplication, dividing and other arithmetic operations.
- Jacquard Weaving Machine and Punch Cards: In the 18th Joseph Marie Jacquard developed a weaving machine that could use punch cards to weave patterns into fabrics. These punch cards contained information read by the machine and laid the foundation for the concept of digital coding.
- Morse Code: The development of the Morse code in the 19th century. Another milestone in digitalisation was another milestone in digitalisation. By using points and lines, information about telegraphy systems could be transmitted.
The era of the computer
In the 19th and early 20. Mechanical calculators were developed that were able to perform complex calculations. For example, designed Charles Babbage is an "Analytical Engine" that can be considered a precursor to modern computer.
Further milestones in digitalization in the computer age:
- First computers: The breakthrough came in the 1940s with the development of the first "modern" computers. In 1941, Zuse built the first functional, fully automatic, program-controlled and freely programmable computer working in binary floating-point calculus and thus the first functional computer in the world. And the ENIAC, built during World War II, was the first electronic coming-powerful computer. He used vacuum tubes and served the US army to calculate ballistic tables.
- Transistors and microchips: The invention of the transistor in the 1950s and later the microchips enabled the development of smaller and more efficient computers. This progress made computers accessible to a wider public.
- Personal computers and the Internet: The first personal computers were created in the 1970s and 1980s. The development of the Internet in the 1990s then revolutionised global communication and data transmission.
The history of digitalization is an evolutionary process that has led from simple mechanical aids to highly complex information systems. Every step in this development has helped to change the way data is stored, processed and transferred. From the humble beginnings of mechanical aids to today's networked world, digitalization has had an enormous impact on our daily lives.
Advantages and Disadvantages of Digitalisation
Advantages of Digitalisation
- Increasing efficiency: Digital technologies automate processes and enable faster execution of tasks. This leads to increased productivity and cost savings.
- Improved communication: Thanks to digital means of communication, people around the world can get in touch with each other. The Internet and social media facilitate the exchange of information and ideas.
- Accessibility of information: The Internet provides access to an almost endless pool of information. Education and knowledge have become largely accessible to everyone.
- Innovation and progress: Digitalization promotes innovation in various industries. New technologies, such as artificial intelligence and the Internet of Things, create new possibilities and improve existing processes.
Disadvantages of digitalisation
- Data protection and privacy: Increasing digitalisation brings with it privacy risks. Personal data is collected, which can lead to data breaches and identity theft.
- Digital divide: Not everyone has equal access to digital technologies. The digital divide between those who have access and those who do not have any increases social inequalities.
- Cybercrime: With the progress of the technology, the areas of attack for cybercrime are also becoming increasing. Hacker attacks, malware and phishing fraud are serious threats to businesses and individuals.
- Dependence on technology and fragility of society: Excessive dependence on digital systems makes societies more vulnerable to failures and disruptions. A collapse of digital infrastructure can have far-reaching consequences.
Digitalisation in the Economy
Unexpected efficiency and worker uprisings, business ideas and hacked pipelines: the impact of digitalisation on the economy has always been profound and has far-reaching consequences for companies of all sizes.
Digitalisation has prompted companies to rethink and adapt their business models. This includes the implementation of digital technologies to optimize internal processes, increase efficiency and improve customer experiences. Cloud computing, big data analytics, artificial intelligence and the Internet of Things are just a few of the technologies that companies use for digital transformation.
Digitalisation opens up new business opportunities and promotes innovation. Start-ups and established companies use digital platforms to develop new products and services that are tailored to the changing needs of consumers. The flexibility and speed with which companies can respond allows them to assert themselves in a dynamic market environment.
Data has become a valuable resource. Companies collect and analyze data to make informed business decisions, optimize marketing strategies and create personalized customer experiences. The use of data enables companies to improve their processes and increase their competitiveness.
Digitalisation also has a decisive influence on the world of work. New working models such as remote work and flexible working hours are on the rise. At the same time, digital transformation requires new skills and qualifications, making further education and retraining important issues.
"Yes, but does it still work? - This is often a very legitimate question when it comes to digital change. The answer to this is much more individualised than you might think. Because most people actually understand "it works" to mean "it works for me". (...)
Sascha Lobo in his column “Hauptsache, es funktioniert für mich” in SPIEGEL Netzwelt [German, translation by Netjutant]
But perhaps this functional joy can be supplemented by the most important human characteristic of the dawning 21st century: Empathy. In other words, that the statement: "This works for me" is followed by the question: "... but does it work for you too?" If only we could finally get on this path!"
The Netjutant Approach to Digitalisation
Today, the Internet plays a central role in all approaches to digitalisation. As professionals around the Internet, we are very familiar with all topics, from cloud and big data to AI and the Internet of Things. We can convey these terms to decision-makers in such a way that they can see the concepts behind them and provide competent estimation of the potential advantages and disadvantages of certain solutions for their company, their organisation or their authority. Together, we develop strategies and solutions that build on the existing and balance the advantages of digitalisation with their risks. The following basics are particularly important to us:
Conservative Digitalisation
The term “conservative digitalisation” describes an approach to the introduction of digital technologies and innovations that aims to preserve or protect proven traditional values, practices and structures, while at the same time making digital changes. In contrast to comprehensive or disruptive digitalization, which often brings with it radical changes in processes and structures, conservative digitalisation emphasizes the integration of digital technologies without changing the basic principles and identity of a company or an organization.
Here are some features of conservative digitalisation:
- Step-by-step implementation: Conservative digitalisation is focusing on a gradual introduction of digital technologies. It avoids abrupt changes to ensure smooth integration and maintain stability.
- Preservation of traditions and values: This approach takes into account the traditional values and working methods of a company. Digital innovations are introduced to respect and support these values instead of displacing or changing them.
- Risk reduction and stability:Conservative digitisation aims to minimise risks and maintain stability. It is about taking advantage of digital technologies without destabilising the organization or taking excessive risks.
EXAMPLE
A hospital has digitized the management of patient records and thus made internal processes significantly more efficient. At the same time, however, attention was paid to not completely abolishing the previous paper system, which has been further developed for decades and has proven itself, but to temporarily store it in the emergency and train the staff accordingly.
In the case of a hacker attack on the digital systems of the hospital, it was therefore quickly possible to return to the processes with paper, pen, fax and telephone. For the period until the digital systems are restored, patient care could be maintained.
- Focus on culture and people: This approach takes great account of the corporate culture and the people who work in the organization. The integration of digital technologies takes place within a framework that promotes the acceptance and support of employees, rather than overwhelming or frightening them.
- Consideration of regulatory requirements: Conservative digitalisation includes regulatory requirements and compliance standards. It ensures that the introduction of digital innovations is in line with the legal framework.
Antifragile Digitalisation
The term “antifragile” was coined by the author Nassim Nicholas Taleb, who presents the concept in his book “Antifragility”. It describes the actual opposite of “fragile”: systems or or organizations that are not only resistant (robust) to disturbances, but also benefit from them and are thereby strengthened.
In the context of digitalisation, “Antifragile Digitalisation” means the following:
- Adaptation and improvement through disturbances:Antifragile digital systems can use disruptions or unexpected events to adapt and improve. They learn from mistakes or unforeseen situations to increase their performance.
EXAMPLE
It happens again and again that programmers include external code in their programs or websites that are actually unnecessary out of laziness or ignorance. In part, half of the Internet is based on actually unnecessary plugins such as elementor or snippets such as the notorious left-pad() function. These risks for you as a customer only to understand or recognize them with a lot of expertise.
Antifragile action here means learning from such mistakes of others and to circumvent these still widespread risks – where possible and meaningful. As shown at left-pad(), external developers can withdraw their posts, sabotage them or simply stop developing. Such an “unforeseen event” then ensures headaches and high costs for large parts of the industry – and a lead for those who have not taken unnecessary risks out of convenience.
- Flexibility and agility: Antifragile digitalisation promotes flexibility and agility in digital structures. Systems are designed to react quickly to changes without becoming unstable.
- Experiments and innovations: This approach encourages experimentation and innovation. Companies can introduce new ideas and technologies to test how their systems respond to different influences and to learn from them.
- Decentralisation and redundancy: Antifragile digitalisation can also include decentralized systems and redundant processes. This means that no single vulnerability will endanger the entire system and minimize failures due to faults.
- Resilience through controlled risk: It is about accepting a level of risk to become more resilient. This does not mean taking out purposes with lack of considerate risks, but rather a controlled willingness to risk to learn and emerge stronger from disturbances.
Strengthening digital skills
The experience in an internet agency can be challenging for people from the “normal world”. Similar to a car repair shop, for example, you are at the mercy of the experts if you don't really get involved in the details.
We strive to make the digital world as easy as possible for our customers and their employees. We explain technical terms and train them in detail, if desired, in all topics relating to the Internet.
The so-called. “Digital participation” is a major concern. In this way, we repeatedly offer training courses too highly reduced rates to bring the modern media closer to children or senior citizens in a safe setting.
To our trainings and coursesIndividual digitalisation
Established and proven software solutions are often used in the context of digitalisation – and that is good! At the same time, one cannot treat a company like the other or an authority like the other. Every application requires an individual strategy and every now and then it makes sense to develop its own digital solutions. We are happy to help you with advice and assistance in the development of individual digital solutions.
More about our digital solutionsDigital and good
Digitisation is not an end in itself. You need the right partner to ensure that your digitalisation project does not end up involving more effort, more risk or more costs than analogue before. We will be happy to help you develop a sustainable digitalisation strategy and show you where the individual opportunities and risks lie. We are also at your side when it comes to implementing customised digital solutions.
contact@netjutant.com (+49) 8685-30998-22