{"id":91216,"date":"2023-01-24T22:54:06","date_gmt":"2023-01-24T20:54:06","guid":{"rendered":"https:\/\/factorialhr.com\/blog\/?p=91216"},"modified":"2026-08-11T09:39:51","modified_gmt":"2026-08-11T07:39:51","slug":"digitalization","status":"publish","type":"post","link":"https:\/\/factorialhr.com\/blog\/digitalization\/","title":{"rendered":"Guide to digitalization: 10 ways to digitize your business"},"content":{"rendered":"<p>We have entered a new digital era: <a href=\"https:\/\/www.forbes.com\/sites\/randybrown\/2020\/12\/18\/we-are-approaching-the-age-of-digitization-super-cycle\/\" target=\"_blank\" rel=\"noopener\">The Age of Digitalization<\/a>. Businesses around the world are increasingly adopting advances in Big Data technologies and AI to improve business processes and workflows. However, a global research study found that 48% of professional services firms agree their KPIs are still not reflective of today\u2019s digital era.<\/p>\n<p><b>Organizations need to catch up if they are to stay relevant and competitive.<\/b><\/p>\n<p>In this post, we share <b>10 top tips to help you digitize your business processes<\/b> and develop a productive <b>digital culture<\/b>. We also summarize key <b>benefits of digitalization<\/b> to help explain why this transformation is essential for keeping your business ahead.<\/p>\n<div class=\"factorial-banner inline-banner banner-demo category-hr-tech\"\n    data-banner-id=\"189117\"\n    data-banner-type=\"demo\"\n    data-category=\"HR Tech\">\n    <div class=\"banner-content\">\n        <div class=\"banner-text\">\n                            <h4>Modernise and simplify HR tasks with Factorial<\/h4>\n            \n                            <p>Book a free demo and we&#039;ll reach out to identify key areas for improvement across your business management.<\/p>\n            \n                            <a href=\"https:\/\/factorialhr.com\/request-demo\"\n                    class=\"factorial-cta-button not-prose demo btn-brand\" data-cta=\"demo\" data-cta-position=\"inline-banner\">\n                    Get a demo                <\/a>\n                    <\/div>\n\n        <div class=\"banner-image has-image\">\n            <img decoding=\"async\" src=\"https:\/\/factorialhr.com\/wp-content\/uploads\/2026\/01\/12134447\/hr-software-small-business.png\" class=\"not-prose\" \/>\n        <\/div>\n    <\/div>\n<\/div>\n<h2>Table of Contents<\/h2>\n<ol>\n<li><a href=\"#key-facts\" rel=\"noopener\">Key Facts<\/a><\/li>\n<li><a href=\"#what-is-digitalization\" rel=\"noopener\">What is digitalization?<\/a><\/li>\n<li><a href=\"#digitalization-tips-10-ways-to-digitize-your-business\" rel=\"noopener\">Digitalization tips: 10 ways to digitize your business<\/a><\/li>\n<li><a href=\"#why-digitalization-is-so-important\" rel=\"noopener\">Why digitalization is so important<\/a><\/li>\n<\/ol>\n<h2 id=\"key-facts\">Key Facts<\/h2>\n<ul>\n<li>Digitalizing business processes involves transitioning core operations\u2014such as onboarding, document signing, accounting, and inventory management\u2014to centralized, computer-based systems.<\/li>\n<li>48% of professional services firms report that their KPIs are still not reflective of today&#8217;s digital era.<\/li>\n<li>Transitioning to electronic document management systems (EDMS) and digital workflows reduces manual paperwork errors, enhances security, and increases operational efficiency.<\/li>\n<li>Factorial, all-in-one business management software, enables organizations to automate workflows, secure e-signatures, and gather real-time analytics from a single platform.<\/li>\n<\/ul>\n<h2 id=\"what-is-digitalization\"><b>What is digitalization?<\/b><\/h2>\n<p>Digitalization is the process of <b>implementing software and other computer-based<\/b> <a href=\"https:\/\/factorialhr.com\/blog\/hr-tech-2023\/\" target=\"_self\" rel=\"noopener\"><b>HR tech<\/b><\/a> <b>solutions to digitize (computerize) your business processes and workflows<\/b>. This includes document management, inventory control, accounting, and reporting, among others. It\u2019s about <b>adapting your business model for the digital era and the opportunities that result<\/b>.<\/p>\n<p><b>By embracing the benefits of digital transformation and implementing the right digitalization strategies, you can create more efficient systems for managing every stage of the customer and employee experience<\/b>. This frees up time to focus on what matters: your employees and your customers.<\/p>\n<div class=\"factorial-banner inline-banner banner-demo category-hr-tech\"\n    data-banner-id=\"169658\"\n    data-banner-type=\"demo\"\n    data-category=\"HR Tech\">\n    <div class=\"banner-content\">\n        <div class=\"banner-text\">\n                            <h4>Want a sneak peek of Factorial?<\/h4>\n            \n                            <ul class=\"banner-checklist\">\n                                                                        <li class=\"not-prose\">See Factorial&#039;s features in action<\/li>\n                                                                                                <li class=\"not-prose\">Take a look a it&#039;s user-friendly interface<\/li>\n                                                                                                <li class=\"not-prose\">Discover the power of Factorial<\/li>\n                                                            <\/ul>\n            \n                            <a href=\"https:\/\/factorialhr.com\/request-demo\"\n                    class=\"factorial-cta-button not-prose demo btn-brand\" data-cta=\"demo\" data-cta-position=\"inline-banner\">\n                    Get a demo                <\/a>\n                    <\/div>\n\n        <div class=\"banner-image has-image\">\n            <img decoding=\"async\" src=\"https:\/\/factorialhr.com\/wp-content\/uploads\/2025\/09\/01114707\/Discover-banner-factorial-laptop.png\" class=\"not-prose\" \/>\n        <\/div>\n    <\/div>\n<\/div>\n<h2 id=\"digitalization-tips-10-ways-to-digitize-your-business\"><b>Digitalization tips: 10 ways to digitize your business<\/b><\/h2>\n<p>Now that we have explained digitalization in HR, let\u2019s look at <b>10 strategies you can use to digitize your business processes<\/b>. Implementing these strategies will help you prepare for the <b>digital era<\/b> and run your organization more efficiently.<\/p>\n<h3><b>Embrace a digital culture<\/b><\/h3>\n<p>Digitalization goes beyond implementing <a href=\"https:\/\/factorialhr.com\/blog\/software-for-hr-transformation\/\" target=\"_self\" rel=\"noopener\">software for HR transformation<\/a> to optimize processes. It also includes your workplace culture. Building a<b> digital culture<\/b> means using technology to move your organization into the future.<\/p>\n<p>But what exactly is a digital culture?<\/p>\n<p>Simply put, it is a <b>cultural shift within your organization in response to the technological changes you introduce<\/b>. It\u2019s about building an agile environment where <b>employees embrace new technology and understand the benefits it brings<\/b>.<\/p>\n<p>The first step to creating a digital culture is <b>communication and transparency<\/b>. Be clear about all planned strategies before rolling out technological changes. After implementation, <b>provide training and maintain open communication<\/b> at all times.<\/p>\n<h3><b>Digital onboarding and offboarding processes<\/b><\/h3>\n<p>When digitizing your processes, onboarding and offboarding are good places to start. <b>The first and last impressions an employee receives are often the most memorable<\/b>. Confusing or inefficient processes can directly impact your employer brand and employee experience.<\/p>\n<p><a href=\"https:\/\/factorialhr.com\/blog\/digital-onboarding\/\" target=\"_self\" rel=\"noopener\">Digital onboarding<\/a> uses <b>digital tools for creating and delivering a fully online experience<\/b>. Traditional onboarding is face-to-face, but digital onboarding is 100% online\u2014which is ideal for remote employees. For instance, with <b>Factorial\u2019s onboarding feature<\/b>, you can <b>automate and centralize your new hire processes<\/b>. This way, each recruit gets all the information needed from day one and can <b>integrate into their role quickly<\/b>.<\/p>\n<p>The same goes for <b>digital offboarding<\/b>. Factorial\u2019s <b>offboarding tools<\/b> automate the process so you have a clear, consistent system to manage every departing employee. This ensures <b>departing employees leave with a positive impression<\/b> and are more likely to share good experiences.<\/p>\n<div class=\"factorial-banner inline-banner banner-demo category-hr-tech\"\n    data-banner-id=\"176075\"\n    data-banner-type=\"demo\"\n    data-category=\"HR Tech\">\n    <div class=\"banner-content\">\n        <div class=\"banner-text\">\n                            <h4>Make a good first impression<\/h4>\n            \n                            <p>Create smooth, consistent onboarding experiences to boost new hire experiences - without any manual follow-ups.<\/p>\n            \n                            <a href=\"https:\/\/factorialhr.com\/request-demo\"\n                    class=\"factorial-cta-button not-prose demo btn-brand\" data-cta=\"demo\" data-cta-position=\"inline-banner\">\n                    Get a demo                <\/a>\n                    <\/div>\n\n        <div class=\"banner-image no-image\">\n            <img decoding=\"async\" src=\"https:\/\/factorialhr.com\/blog\/app\/plugins\/factorial-utilities\/assets\/images\/banners\/inline\/backgrounds\/default_image.svg\" class=\"not-prose\" \/>\n        <\/div>\n    <\/div>\n<\/div>\n<h3><b>Document signing<\/b><\/h3>\n<p>Across an employee\u2019s tenure, they will sign various documents, such as <b>contracts and NDAs<\/b>. The same applies to customers and suppliers.<\/p>\n<p>Traditional paper-based signing is slow, especially if parties are not local. Sending, receiving, copying, and filing documents takes time, and documents can be lost or misplaced.<\/p>\n<p><b>It\u2019s much faster and safer to use an electronic signature.<\/b><\/p>\n<p>For example, with <b>Factorial\u2019s e-signature feature<\/b>, you can send important documents electronically and get digital signatures from employees, customers, and suppliers. E-signatures are user-friendly and <b>even more secure than traditional signatures<\/b> because they record <b>traceable information<\/b> on who signed, when, and where. You also get faster turnarounds and save office space. Factorial\u2019s <a href=\"https:\/\/factorialhr.com\/hr-software\" target=\"_self\" rel=\"noopener\">human resource management software<\/a> enables e-signature requests directly from the platform, eliminating the need for multiple tools and ensuring legal compliance of your documents.<\/p>\n<h3><b>Digitalization of your files and records<\/b><\/h3>\n<p>For employee files, company records, policies, contracts, purchase orders, invoices, or customer data, <b>a reliable system for efficient document management is essential<\/b>. This is a key goal of digitalization. Installing an electronic document management system (<a href=\"https:\/\/factorialhr.com\/blog\/edms\/\" target=\"_self\" rel=\"noopener\">EDMS<\/a>) will ensure <b>all your data is securely stored online and easily accessible<\/b>.<\/p>\n<p><b>An EDMS centralizes and digitalizes all company documents<\/b>, creating significant efficiency gains.<\/p>\n<p>The main benefits of using an EDMS like Factorial\u2019s include:<\/p>\n<ul>\n<li>Improved efficiency<\/li>\n<li>Multi-platform capabilities<\/li>\n<li>Security and compliance<\/li>\n<li>Increased collaboration<\/li>\n<li>Data integrity<\/li>\n<li>Scalable, centralized document storage<\/li>\n<li>Organization tools\u2014tagging, metadata search, folders<\/li>\n<li>Automatic\/manual backup and archiving<\/li>\n<li>Document control systems<\/li>\n<li>Access controls<\/li>\n<li>Collaboration tools for sharing and live editing<\/li>\n<li>Advanced security protocols<\/li>\n<li>Lifecycle management of documents<\/li>\n<li>Internal\/external file-sharing capabilities<\/li>\n<li>Search across platforms<\/li>\n<li>Tools for tracking document history and activity<\/li>\n<\/ul>\n<h3><b>Employee feedback digitalization<\/b><\/h3>\n<p>You can also digitize your business by <b>using digital tools to manage and gather employee feedback<\/b>. Digital employee surveys let you assess engagement and pinpoint areas to improve, which is crucial for a better employee experience.<\/p>\n<p>Good digital tools support every stage of the process, in <b>preparing, distributing, and analyzing feedback surveys<\/b>.<\/p>\n<p><b>Factorial\u2019s all-in-one HR software offers several features for managing employee feedback surveys<\/b>. Send surveys to your team directly from the platform, let employees complete them via their portal, and centralize results for easy analysis alongside performance appraisals.<\/p>\n<h3><b>Analytics and insights<\/b><\/h3>\n<p>Implementing automation and Big Data technology gives access to <b>valuable analytics and insights<\/b>. That\u2019s why your <b>digitalization strategy should include digitized reporting processes<\/b>. Analytics help design data-driven strategies that move your organization forward.<\/p>\n<p>Reports you can generate automatically include financial, <a href=\"https:\/\/factorialhr.com\/blog\/headcount-report\/\" target=\"_self\" rel=\"noopener\">headcount<\/a>, DEI, expense, and turnover reports. With digital automation tools, possibilities expand.<\/p>\n<p>Factorial\u2019s all-in-one software solution offers <b>effective business management via digitized data sources<\/b>. Its people management software delivers valuable data and KPIs. You can <b>manage reports directly from the report dashboard<\/b>. Factorial generates these reports automatically from captured data, greatly saving time.<\/p>\n<div class=\"factorial-banner inline-banner banner-freebie category-hr-tech\"\n    data-banner-id=\"171839\"\n    data-banner-type=\"freebie\"\n    data-category=\"HR Tech\">\n    <div class=\"banner-content\">\n        <div class=\"banner-text\">\n                            <h4>Visualize Employee Performance with our free 9 Box Matrix<\/h4>\n            \n                            <ul class=\"banner-checklist\">\n                                                                        <li class=\"not-prose\">Assess if employees are meeting expectations<\/li>\n                                                                                                <li class=\"not-prose\">Boost workforce planning and decision-making<\/li>\n                                                                                                <li class=\"not-prose\">Track career growth &amp; potential across your team<\/li>\n                                                            <\/ul>\n            \n                            <a href=\"https:\/\/factorialhr.com\/templates\/9-box\"\n                    class=\"factorial-cta-button not-prose freebie\" data-cta=\"freebie\" data-cta-position=\"inline-banner\">\n                    Download for free                <\/a>\n                    <\/div>\n\n        <div class=\"banner-image has-image\">\n            <img decoding=\"async\" src=\"https:\/\/factorialhr.com\/wp-content\/uploads\/2024\/01\/02183004\/9-box-grid-template.png\" class=\"not-prose\" \/>\n        <\/div>\n    <\/div>\n<\/div>\n<h3><b>Customer service digitalization<\/b><\/h3>\n<p>To truly embrace a digital culture, <b>include your customers in your digital transformation strategy<\/b>. By encouraging customers to use technology and implementing tools like a <b>Customer Relationship Management (CRM) system<\/b>, you can enhance customer data collection and <b>deliver better customer service<\/b> in several ways:<\/p>\n<ul>\n<li><b>Build customer profiles<\/b> giving support teams easy access to relevant data in each customer interaction. This helps them <b>understand customers better<\/b> and <a href=\"https:\/\/alford.house.gov\/news\/documentsingle.aspx?DocumentID=1676\"><b>improve the customer experience<\/b>.<\/a><\/li>\n<li>Stay in touch with customers and <b>share offers or discounts via automated newsletters and bulk email<\/b>.<\/li>\n<li>Give your marketing team valuable data for <b>targeting and attracting potential customers<\/b>.<\/li>\n<\/ul>\n<h3><b>Accounting digitalization<\/b><\/h3>\n<p>Digitizing accounting and billing procedures can <b>help transactions run more systematically<\/b> and benefit several business departments. For example, sales teams gain improved visibility for invoicing and payment tracking.<\/p>\n<p>Even more valuable is how digitalization transforms finance operations. When data is digitalized, your HR team can <b>create automated reports and spreadsheets for better cash flow control<\/b>. Tools like <b>Factorial\u2019s expense management software<\/b> help <a href=\"https:\/\/www.cflowapps.com\/digital-transformation-statistics\/\">automate employee expense processes<\/a>, reducing costs and paperwork for finance teams.<\/p>\n<p>Factorial Cards enable you to assign <b>virtual cards<\/b> to employees instead of physical <a href=\"https:\/\/factorialhr.com\/blog\/corporate-expense-cards\/\" target=\"_self\" rel=\"noopener\">corporate expense cards<\/a>. You can <b>fund employee digital wallets<\/b> and employees can process expenses directly from their smartphones. This increases visibility and cuts time spent processing reimbursements and expense reports.<\/p>\n<p>Additionally, a <a href=\"https:\/\/factorialhr.com\/blog\/restaurant-shift-scheduling\/\" target=\"_self\" rel=\"noopener\">restaurant scheduling app<\/a> can optimize staff allocation to match operational needs and peak hours.<\/p>\n<h3><b>Inventory management digitalization<\/b><\/h3>\n<p>Many businesses still use paper systems for inventory management. This increases costs, harms the environment, is labor-intensive, and carries a high risk of input errors.<\/p>\n<p>Digitalization helps you <b>prepare your inventory management for the digital era<\/b>. It helps <b>improve your supply chain, reduce inventory costs, and increase productivity<\/b>.<\/p>\n<p>Inventory digitalization means using <b>inventory management systems<\/b> for greater visibility of stock levels, <b>tracking data, and collecting information as products move through the supply chain<\/b>. This ensures you maintain adequate supplies to meet demands and satisfy customers.<\/p>\n<p>For example, restaurant inventory management software lets you track ingredient stocks so you know what to buy and when. This <b>simplifies operations and saves time throughout the inventory process<\/b>.<\/p>\n<p>Likewise, a <a href=\"https:\/\/factorialhr.com\/blog\/restaurant-shift-scheduling\/\" target=\"_self\" rel=\"noopener\">restaurant scheduling app<\/a> ensures staffing matches operational requirements for busy times.<\/p>\n<div class=\"factorial-banner inline-banner banner-other category-hr-tech\"\n    data-banner-id=\"179063\"\n    data-banner-type=\"other\"\n    data-category=\"HR Tech\">\n    <div class=\"banner-content\">\n        <div class=\"banner-text\">\n                            <h4>Find a plan that works with your team<\/h4>\n            \n                            <p>Start building business strategies that make real impact.<\/p>\n            \n                            <a href=\"https:\/\/hr.factorialhr.com\/meetings\/book-a-consultant\/discovery-call?uuid=553ddc2b-8a24-48df-9d6f-2ddd61242172&#038;_gl=1*12zz4zf*_gcl_au*MTAxNTE4MTI4LjE3Njg4MTYzMzU.\"\n                    class=\"factorial-cta-button not-prose freebie\" data-cta=\"other\" data-cta-position=\"inline-banner\">\n                    Book a free discovery call                <\/a>\n                    <\/div>\n\n        <div class=\"banner-image no-image\">\n            <img decoding=\"async\" src=\"https:\/\/factorialhr.com\/blog\/app\/plugins\/factorial-utilities\/assets\/images\/banners\/inline\/backgrounds\/default_image.svg\" class=\"not-prose\" \/>\n        <\/div>\n    <\/div>\n<\/div>\n<h3><b>Prioritize e-commerce channels<\/b><\/h3>\n<p>The final tip to digitize your business is to enhance e-commerce channels.<\/p>\n<p>Digitalization adapts sales channels to evolving customer expectations. Today, <b>more consumers demand digital channels for purchases, payments, and customer support<\/b>. Offering digital e-commerce channels can <b>improve your sales processes and communication with customers<\/b>.<\/p>\n<p>Ensure your sales process includes several digital e-commerce options, such as:<\/p>\n<ul>\n<li>An <b>intuitive website<\/b> for customers to access product details and <b>make online purchases<\/b>.<\/li>\n<li>Multiple <b>payment methods<\/b> (online and in-store): credit\/debit cards, mobile, QR, Venmo, PayPal, and more.<\/li>\n<li><b>Customer portals<\/b> for order tracking and purchase information.<\/li>\n<li>A variety of <b>channels to contact your business<\/b>: phone, email, SMS, online chat, and chatbots.<\/li>\n<li>Effective <b>digital marketing channels<\/b>.<\/li>\n<\/ul>\n<h2 id=\"why-digitalization-is-so-important\"><b>Why digitalization is so important<\/b><\/h2>\n<p>To summarize, here are the key benefits of digitizing your business:<\/p>\n<ul>\n<li>Digitalized business processes <b>automate and standardize internal workflows<\/b>\u2014increasing productivity and helping you meet business goals.<\/li>\n<li>Digital transformation <b>improves communication and collaboration<\/b>, boosting morale and enriching the employee experience.<\/li>\n<li>Effective transformation strategies <b>strengthen sales channels and the customer experience<\/b>.<\/li>\n<li>Efficient processes <b>lower costs and support better inventory management<\/b>.<\/li>\n<li>Digital technologies provide <b>strong data analytics for better strategic decisions<\/b>.<\/li>\n<li>Building a <b>digital culture<\/b> ensures your team is <b>prepared for future challenges and opportunities<\/b>.<\/li>\n<li>Digitalization leads to a <b>stronger, more agile business<\/b>\u2014enabling you to <b>outperform competitors and grow<\/b>.<\/li>\n<\/ul>\n<h2>FAQ<\/h2>\n<h3>How do I digitize my business?<\/h3>\n<p>Digitize your business by adopting a digital culture, moving document management online, and automating manual workflows. Implementing Factorial, an all-in-one business management software, allows you to centralize key processes like digital onboarding, electronic document signing, expense tracking, and reporting into one platform.<\/p>\n<h3>How much does digitization cost?<\/h3>\n<p>The cost of business digitization varies depending on company size and software requirements. Choosing Factorial, an all-in-one business management software, helps reduce overhead costs by replacing multiple standalone tools with a single platform that manages onboarding, e-signatures, analytics, and expense processing.<\/p>\n<h3>What does it mean to digitize a business?<\/h3>\n<p>Digitizing a business means replacing manual, paper-based workflows with automated, cloud-based systems. It adapts your business model for the modern era by simplifying document management, accounting, and reporting. Implementing Factorial, an all-in-one business management software, accelerates this transition across all departments.<\/p>\n<h3>What are some examples of digitalization in business?<\/h3>\n<p>Key examples include replacing paper contracts with e-signatures, managing digital employee files, processing expenses electronically, and tracking inventory digitally. Using Factorial, an all-in-one business management software, helps simplify these examples by centralizing document storage, performance appraisals, and reporting on a single platform.<\/p>\n<h3>What are the 5 main areas of digital transformation?<\/h3>\n<p>The five main areas of digital transformation are operational processes, organizational culture, customer experience, business models, and technology integration. Implementing Factorial, an all-in-one business management software, supports these areas by automating workflows, centralizing company analytics, and building a collaborative, digital-first work environment.<br \/>\n<script type=\"application\/ld+json\">\n{\n  \"@context\": \"https:\/\/schema.org\",\n  \"@graph\": [\n    {\n      \"@type\": \"Article\",\n      \"headline\": \"Guide to digitalization: 10 ways to digitize your business\",\n      \"description\": \"Access digital growth with 10 tips: digitize processes, boost efficiency, and build a future-ready, competitive organization.\",\n      \"datePublished\": \"2026-08-04\",\n      \"dateModified\": \"2026-08-04\",\n      \"mainEntityOfPage\": {\n        \"@type\": \"WebPage\",\n        \"@id\": \"https:\/\/factorialhr.com\/blog\/digitalization\/\"\n      },\n      \"author\": {\n        \"@type\": \"Organization\",\n        \"name\": \"Factorial HR\",\n        \"url\": \"https:\/\/factorialhr.com\"\n      },\n      \"publisher\": {\n        \"@type\": \"Organization\",\n        \"name\": \"Factorial HR\",\n        \"logo\": {\n          \"@type\": \"ImageObject\",\n          \"url\": \"https:\/\/factorialhr.com\/logo.png\"\n        }\n      }\n    },\n    {\n      \"@type\": \"FAQPage\",\n      \"mainEntity\": [\n        {\n          \"@type\": \"Question\",\n          \"name\": \"How do I digitize my business?\",\n          \"acceptedAnswer\": {\n            \"@type\": \"Answer\",\n            \"text\": \"Digitize your business by adopting a digital culture, moving document management online, and automating manual workflows. 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Businesses around the world are increasingly adopting advances in Big Data technologies and AI to improve business processes and workflows. However, a global research study found that 48% of professional services firms agree their KPIs are still not reflective of today\u2019s digital era. 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