The Impact of Digitalization on Businesses

Digitalization is one of the driving forces behind growth, efficiency, and innovation. Recent research by CBS shows that nearly 91 percent of Dutch companies have undertaken digitalization initiatives in recent years. The main motivation for this is the expected productivity and efficiency gains. However, digitalization is not without challenges. Many companies encounter obstacles, such as high costs and a shortage of qualified personnel.

Digitalization and Productivity Growth

Increasing productivity is a key reason for companies to further digitalize. About 53 percent of companies cited this as the primary reason. By embracing ICT and digital technologies, they can streamline their work processes and get more out of their available resources. Larger companies seem to benefit the most: 67 percent of large companies experienced a positive impact, compared to 44 percent of smaller companies. In sectors such as retail and business services, this impact was even more evident.

Sectoral Differences in Digitalization

The degree and impact of digitalization vary by sector. Retailers, with over 65 percent, most often indicated that digitalization positively contributes to their growth and development. In the information and communication sector, where 20 percent of companies reported a significant positive impact, digitalization also plays an important role. On the other hand, digitalization lags in sectors like hospitality, where slightly more than 18 percent did not undertake digitalization initiatives.

Barriers to Digitalization

Despite the advantages of digitalization, companies experience various barriers. A lack of skilled staff is the main obstacle for more than 20 percent of businesses, especially in sectors such as real estate leasing and trading. Companies struggle to find specialized personnel who can guide and implement digital transformation. Additionally, nearly 18 percent of companies cite high costs as a barrier, especially for small enterprises.

Positive Experiences and Challenges

Digitalization does not have the same impact on all companies. Over a third of businesses notice little to no impact from their digital initiatives. Yet, 54 percent of companies experienced a (very) positive impact on growth and development in the past 12 months. This shows that, while digitalization offers opportunities, the benefits highly depend on the extent to which a company is prepared and supported in this transition.

How to Start Digitalizing?

For companies looking to start digitalizing, there are various practical steps that can be implemented in the short term. Here are three ways to begin digitalizing that offer relatively simple solutions:

Digital Payments and Direct Debit Authorization: By switching to digital payment systems, transactions can be executed faster and more securely.

Digital Onboarding: including ID scanning and PEP/sanction list checks, ensures fast and secure verification of new customers and employees. These automated processes reduce the risk of fraud and ensure companies meet compliance requirements.

Digital Signing: Implementing digital signatures accelerates the approval process of documents and contracts. Additionally, digitalizing contracts makes contract management and storage simpler and safer.

Conclusion

Starting with digitalization doesn't have to be complicated. With the right strategy and tools, companies can already benefit from the many advantages digitalization has to offer in the short term. Services like those from Bluem make it easy to implement digital solutions, enabling companies to quickly respond to the changing market demands and strengthen their competitive position. By starting to digitalize now, companies can prepare for a future where technology plays a central role in their success.

Source: CBS & Conjunctuurenquête Nederland