How Will the World be Transformed by Digitalization?

By Ranggi R.

Published on July 13, 2023

Have you ever thought that technology meddles in every single thing? 

Technology is inevitable. Especially when we talk about the current times.

Since technology came and became available to us, it changed our lives a lot. Today, the way we live, interact and do things is much different than before.

It is when the digital age has come, or we know it as digitalization. Digitalization affects other aspects of life, both directly and indirectly. Business is one of them.

More about Digitalization

It is all about doing it in a digital way.

In times when most things appear rapidly, the amount of new technological inventions has increased. According to research by MediaPeanut, there are over 43 different types of technology.

This gives us an opportunity to digitize.

In a simple definition, digitization means turning an analog process into a digital one.

Every day, digital technology is involved in various tasks for improving efficiency and productivity. This is an impact given by both digitization and digitalization. 

Some people consider digitalization to be no different from digitization. The fact shows the opposite. Digitization means converting analog information or data to digital format, whereas digitalization is more about taking processes into digital from analog.

Thus, we can live our life without constraints of location and time. Even better, we can do everything with others altogether.

In a simple definition, digitization is the process of converting analog things into a digital format. Therefore, you can convert all confidential or important documents and files to PDF, JPEG or PNG by scanning them.

Digital in Business

It is undeniable that digital has transformed business as well.

Digital transformation, as it is known. It is the process of adoption and application of digital technology by an organization for the purpose of operating business and delivering value to customers.

It is the same as digitalization but more than that. Digital transformation also determines how the entire organization operates by identifying what digital solutions can be implemented to an organization.

Talking about digital transformation in business, digital transformation plays an important role.

Still from MediaPeanut, there are 178,000 new technology jobs projected in Q4 of 2022. This means that digital transformation also provides career opportunities, including in various industries.

Not only that. Since technology jobs are required in various industries, the industry has shown a significant impact. Below is a list of current examples of digital transformation:

1) Manufacturing and Retail

Workers in these industries undertake tasks with more effectiveness and simplicity.

Manufacturers produce parts with precise details and sizes with automation, which results in shorter production times. In spite of it, the production does not lose its quality, since the reliance of machines and computers.

While retail is an industry where customers can check products before buying. Thanks to digital and virtual exhibitions.

2) Transportation

This industry is where digital transformation is more exposed to the public.

Because people also benefit from digital transformation. On-demand transportation services such as Grab and Uber allow everyone to go elsewhere faster and more affordably.

Everyone who does not own any vehicle can be a passenger, while vehicle owners can be partners.

3) Media

Now, everyone can entertain themselves in real-time.

OTT platforms like Netflix, HBO Max, and Mocaas are some examples. They serve customers with a wide selection of movies and series that are ready to be watched. All we have to do is choose and enjoy.

It is definitely good news for creators. With the availability of digital platforms, they can allow themselves to distribute and exhibit their works of art.

One of the most successful implementations of digital transformation is that carried out by IKEA. The company recognized the importance of digitalization by acquiring TaskRabbit in 2017 and creating Space10, a research and design laboratory.

As a result, customers are now more engaged with IKEA, since digital transformation also allows customers to solve interior-related problems.

Advantages and Disadvantages of Digital Transformation

Digital transformation also has pros and cons.

1) Advantages

  • Compatible Business

Companies that adopt technology tend to be successful.

44% of organizations have implemented digital transformation in their business run, according to IDG. That means organizations have the more risks of getting left behind if they remain conservative.

  • Better Customer Experience

Implementing digital transformation means providing the best experience to customers.

Nowadays, everyone spends most of their time surfing the internet. By implementing digital transformation, organizations can create digital presence and people can find and fulfill their needs with just fingertips.

  • Employee Productivity

Digital transformation impacts everyone’s productivity in the workplace.

Because efficiency is required every day, digital transformation allows employees to get their work done and manage all tasks more quickly, while also keeping them on track.

2) Disadvantages


  • The Amount of Spent Time

Unfortunately, it takes time to implement digital transformation.

Although it is highly recommended to consider digital transformation as a part of business, not all technologies can be relied on. Also, companies must do research first to find the best ones.

3) Constant Change

The more a technology develops, the more effort it takes for companies to keep up.

In order to implement digital transformation, there is no other way for an organization than staying relevant. However, it will be difficult to be at the forefront of digital transformation, pioneering the digital business.


Besides those three industries, there are many industries digitizing themselves for better organization operation and management.

Embracing digitalization for modern business success is key. Do not ever deny it.

In 2017, the company acquired TaskRabbit. This is a website that lets you search for people to help with the assembly or delivering furniture purchased at IKEA to your apartment. Thanks to this, customers who can’t manage these tasks on their own are more likely to use the services of the company.

In addition, IKEA has decided to implement a smart home project. For the furniture industry tycoon this includes intelligent kitchen equipment and lighting. The company also uses Augmented Reality in the IKEA Place application to make it easier for customers to choose furniture and virtually “furnish” the apartment before making purchases in the store.

Another example of the digital transformation of IKEA is the Space10 project, which is a research center and exhibition center. It was there that the company presented the concept of autonomous cars as a residential and entertainment space. However, IKEA does not plan to produce cars alone, it only creates concepts for their interior.