Customers of an online bank would naturally expect to be able to conduct their business online, wouldn’t they?
Digitalisation in Organizations and Businesses
On the level of businesses and organizations, the approach to digital transformation remains a reactive one. Most organizations play catch-up. They adopt new technologies to remain competitive and relevant. They are mostly not looking to innovate.
According to Couchbase, 86 percent of organizations have found digital transformation all but smooth. Problems reported in the linked study have included reduced expectations, delays, and downright failure.
Despite the dire rate of success, digitalisation projects are gaining traction. More and more executives see the potential in digital transformation.
Reasons for Digitalisation – Why Digitalisation is Important
From a bird’s eye perspective, the potential benefits of digitalisation are obvious. Better workflow, more efficiency, better products, and entirely new services are part and parcel of the process. From these advantages stem others, such as better competitiveness.
Besides the mentioned benefits, properly digitalised businesses also enjoy:
- New customer acquisition channels.
- Improved working conditions and better employee retention.
- Improved decision-making.
- More willingness to innovate.
- Better teamwork.
At a closer look, the reasons cited by business executives for digitalisation are entirely different. They are mostly rooted in fears of missing out.
- Most of them are afraid their organization will fall behind.
- They fear their companies will lose relevance in the market.
- Some fear that their IT staff might move on to more innovative businesses.
- Many also fear losing staff from other departments as well, according to Couchbase.
Pros and Cons of Digitalisation (Consequences of Digitalisation)
The pros of digitalisation far outweigh its cons. Some of these pros are:
- Better manufacturing processes.
- Products delivered to market faster.
- Reduced reaction times to customer feedback.
- Improved insights.
- Entire supply chains can benefit from end-to-end integration.
- Lower production costs.
At the other end of the spectrum, the cons are much less significant. The poor implementation of digitalisation still hides some pitfalls. This can translate to:
- Improving UX to the point that digital transformation destroys economic rent. The process creates spectacular value for customers and none for the business.
- Promoting a winner-takes-all economy, which is conducive to monopoly.
- Poorly understanding ecosystems resulting from digitalisation.
- Completely missing the duality of the process.
Businesses can tackle such problems by choosing a reliable partner, such as Scrive.com.
Examples of Digitalisation
The advance of technology along with new legislation defining digital commerce have made eIDs and remote electronic signatures possible and increasingly widespread.
– Scrive.com relies on this technology to provide several solutions for its corporate customers.
One such solution is the POS e-signing solution the company provided to Telenor Norway. Through the eSign-enabled POS terminals, Telenor customers can sign contracts electronically.
All thusly digitalised contracts are kept in a virtual repository. Telenor Norway uses a franchise system for its stores. Now, managers and customer service agents can access the contracts of all stores at the click of a button. This has led to faster customer service, better fraud detection, and a much better-organized contract repository.
– Scrive’s eSign has turned out to be a superb solution for online bank Avanza. Before eSign, onboarding an online customer would take the bank up to a month. The paperwork went back and forth between the two parties, its speed conditioned by that of snail mail.
With eSign, customers can now sign contracts online, instantly. And to comply with the bank’s security requirements, they can use Swedish BankID, a form of eID integrated into the Scrive service, to authenticate their identity. Avanza’s digitalisation push has resulted in a 120 percent increase in signed document conversion rate, as far as remotely signed documents are concerned.
Total deposits increased by 20 percent. Onboarding time dropped by 72 percent. Over the same time-frame, account volumes have quadrupled.
Avanza’s use of eSign is a great example of digitalisation in banking.
– The possibility to sign contracts remotely with Scrive’s eSign Online has been a boon for CEO Magazine’s advertising sales. Before the digitalisation of the procedure, the magazine would send out advertising contracts in a scattershot effort.
Giving clients the possibility to sign contracts electronically and instantly is the winning approach. Physical contracts are often misplaced. Thus even those who want to sign them fail to do so.
The introduction of eSign has increased the number of signed/returned contracts by 25 percent. Signing turn-around has dropped from days/weeks to around 5 minutes.
Administration time on a contract has dropped to 15 minutes.
In these examples, the advantages ushered in by digitalisation are clear. They are not a matter of perception. They are quantifiable.