First, let’s learn what “digitization” means. It’s a process where information of any kind, which is not digitally synthesized yet, is changed into a digital format with the help of certain computer softwares. The resultant digitized files, after conversion, are found either in a binary/computer recognisable language/format or in a basic word format that differs from the original formats of the aforementioned files such as text, image, spreadsheets, etc.
If needed to be put in simpler words, Digitization is the process of conversion of any type of data, mainly paper based, into digital documents and files.
In today’s world, businesses are getting formed everyday. According to the statistics, around 1,67,000 companies and businesses have already been formed in India till now, just in 2022. Seems like a great number? Well, it’s negligible compared to the number of businesses being formed worldwide.
With such circumstances, small businesses need to find new ways of increasing efficiency in order to compete in such a huge market. Digitization of documents and company files helps through this as well as forms various ties with company reforms such as successful customer relations. Hence, to digitize documents these days is to be the smarter person in business.
What is document scanning in the digitization of data?
Document scanning is the process of clicking images of the documents which are originally in paper format, i.e. written or printed on paper, going forward they are converted into digital format. The digital images are then either circulated in the business loop as they are, or else they are converted into digital text format with the help of optical character softwares which convert images into text. Basically, the softwares or applications recognise the characters and texts in the image/digital image and absorb them in order to create a separate digital text document.
Software engineers and tech-savvy people are constantly in the process of developing new softwares and applications which help the user in easily completing the procedure without much hassle and effort. This process sounds very long and time taking but it is usually completed in a matter of minutes. In the modern world where data digitization is an unsaid compulsion when it comes to businesses, document scanning is usually the first step towards a better future for the company/business, not just in terms of a perpetual growth, but also with respect to growth in the “multiverse” as we call it.
Why is digitization important?
It protects the documents of a business in various ways such as from easy theft or accidents that may occur if the documents are preserved and kept in physical form only. Retrieval of records and documents is also easier when it comes to digitized documents or files.
It also enables the directors/owners to freely circulate certain documents within the business in a hassle-free manner. Digitization is directly proportional to organization of the documents and files of a business. To phrase it in an easier way, digitization of documents helps in organizing them easily and hence, locating and altering them or working on them becomes easier for the owners of the documents.
Hence, digitization provides increased flexibility in a business in terms of documentation as well as management and basically the whole operation as it is.
The company document digitization process helps not only in the development of the business, but also in maintaining public relations.
What are Digitization Document Services?
Many firms or service providers have emerged in the past 2 decades, who offer services in the field of Digitization.
The primary services that any digitization service provider offers are:
- Paper scanning (office documents, student records and maps/drawings)
- Bound book scanning
- Archival preservation scanning (fragile, loose or bound materials).
In addition to these basic or primary services, there are a lot of on-demand services as well, that a provider may offer.
They vary with a vast range right from conversion of documents into different formats to encryption services.
There are many service providers online, who provide many of these services for free up to a certain point of time or upto an extent, after which the user/business owner will need to pay for further availability of the services.
Others charge for basic packages or services as per the ongoing rate in the market. Usage of these services in a small business can result in portrayal of professionalism and could gather better output in terms of revenue as well as goodwill.
In today’s world, outsourcing services providers are trending and their organizations are in a state of consistent booming. When it comes to data digitization, outsourcing comes as handy, as many of these aforementioned organizations and firms provide cheaper services with respect to expenditure and time.
They can professionally handle the work given to them and can deliver results in time, if not before time. Hence, many of the businesses nowadays prefer outsourcing service providers for digitization of their documents and business files.
How is storage a factor?
When data is digitized, it can be stored in a much more easy and compact way in comparison to physical storage.
The transition from physical storage to digitized or digital storage is indeed a big step for smaller businesses, but will result in tremendous advantages.
When running a small business, it is hard to afford a different space dedicated solely for storage. And it is unavoidable, as the data is perpetual and needs to be maintained in order to successfully complete the taxing procedures as well as for customer relations or unforeseen issues.
But physical bookkeeping can prove to be really tiresome as well as it would consume a lot of space, hence making digitization a better and efficient option. With Digitization, firms/businesses use a cloud based storage system for storing documents or files in digital format.
Storing data in the cloud based system is secure and provides easier ways to share the digitized files, hence resulting in increased flexibility for the business.
It also prevents the slightly older methods of digital storage in hard drives or portable discs.
These are just minute drops of an ocean full of advantages that digitization brings with it.
Some of the companies or softwares that provide cloud based storage systems:
- Amazon Web Services
- Box
- Dropbox
- JustCloud
- OpenDrive
And obviously, the most popularly used one, Google.
Cutting down costs with digitization of documents.
Productivity and efficiency are one of the main objectives when it comes to digitization of documents in a business or company. Any small business owner can relate to the statement that it is harder to give better services to customers without spending more and having a wider range of options. But this statement has proven to be as partially incorrect with the development of technology.
A plethora of various advantages can be availed with digitization of documents.
Some of which are –
Saving time and resources.
A lot of time can be saved when documents are digitized. Paper, ink and other resources are also saved when documents are digitized and can be circulated easily without the need to fax or mail physically.
Easily accessible data.
It’s stored digitally, mostly on a cloud based storage, hence easily accessible and can be altered.
Less expenditure on insurance.
When documents are stored digitally, insuring them is easier.
Less and efficient damage control.
If there is damage to the digitized files or documents, they are easier to recover and the damages can be undone in a better way compared to physical documents.
Security.
Files can be encrypted and secured in a really efficient way when digitized.
Better working environment and encouraged work spirit.
People work in an easier way in comparison, when they are working on digital files instead of physical work.
Role of Digitization in Customer Relations.
Keeping your documents digitized helps in building a stronger front for customer relations. This also enables the customer to interact in a digital way with the business and according to a survey, customer satisfaction can be increased by 33% and by digitization.
Digitization helps in getting tools for further management of customer relations and helps in meeting the desires of the customers. The digitization of the main activities of a business including documentation leads to an effective and efficient sales process and also paves the way for further advancements in the business in the near future or even the bigger picture, which require not only good but great customer relationships.
As a result of modernization, many small businesses digitize their documents right from the start. This in turn makes it easier for the business owners as well as consumers to understand each other’s Modus Operandi. A debate still goes on in parts of the world, that digitization can be the destruction and not the salvation of business, but a vast majority consider it to be one of the best innovations of technology in the field of business.