The Information Age is how the XXI century is known, when more and more processes are being digitized and automated. However, not all companies face this digital change at the same pace nor in the same way. It is now almost twenty years since we entered this new age (some could argue it was even before, when the Internet was born) but still some companies seem to be reluctant to the digitalization. There can be different factors that determine why some companies are willing to take the step while others are stick to the old fashioned ways of doing business, and the culture of the country is one of them.
There are some countries more conservative than others, and it is usually the countries from the South which are slower in implementing the latest technologies. The late or the no adaptation can lead to big gaps in this competitive world. The capabilities that a company has is an important factor that influences if the company can or not take the step, however, in many cases the barrier is fears towards digitization. It is important to realize that most of these fears are unsubstantiated and irrational. In this blog we discuss three common factors why companies are reluctant to digitization.
Factors why companies are reluctant to digitization
- Cultural resistance to change. There is fear of not being able to adapt, of failing to understand how new systems work: the employee is, therefore, afraid of losing his job.
- Risk aversion. Investment in technology means uncertainty, which in turn implies risk. The company will not see immediate results that can be quantified, which creates a barrier to digitization.
- Cloud security. “Is my data safe in the cloud?” One of the biggest concerns is cyber-attacks that violate your privacy. Data stored in the cloud is perceived as being more exposed than data stored inside the company. The fake feeling that you can better watch over the documents if stored on your computer (or in the file cabinet).
Counter-arguments of these three common factors
- How to overcome cultural resistance to change. The company must be transparent about the implications of the digitization process and must also provide the necessary training for an effective integration. It is important that employees feel that technology does not replace the individual, but is a tool that enables to improve their tasks and overall performance.
- How to overcome risk aversion. The digitization process must be seen as a medium and long term investment. It is important that entrepreneurs see technology as a safe bet and not as an expense.
- How to transmit security in the cloud. It is important to be aware that private storage within company facilities does not imply greater security. Storage on the private computer is a common goal for hackers, while storage in file cabinets is also exposed to accidents (in addition to being a waste of paper and taking up space). Therefore, we can state that cloud security standards are much higher in the provider’s environment than in our own business, as the Cloud provider is likely to have better physical and financial resources to counter threats and real attacks.
Take a plunge into digitization with Klippa
We have now, hopefully, given you enough reasons not to fear digitization. Technology is all around us, we use it in our private life, so why would your company not use it too? It has been shown that companies that take the plunge into digitization gain more from it than companies that take a more conservative stance and do not join the digital transformation. We are in the Digital Age and we must adapt and use what it brings, taking advantage of it.
Five years ago, Klippa saw in technology an opportunity to help companies optimize financial processes. The team developed a sophisticated engine to carry out these processes faster and easier, thus more efficient. Recalling the arguments we have given in this blog: Klippa expense management and Klippa invoice processing with OCR allow employee tasks to be performed more efficiently: it does not replace the employee, but gives a tool for him; implementing our solutions saves time and costs, which in turn leads to higher profits: technology is not an expense, but an investment; and finally, Klippa is cloud-based, giving you the ability to access your data 24/7, with the confidence that they are always safe thanks to regular checks and measures.