Digitalization nowadays can be experienced in all aspects of business functioning. Modern technology has made it easier for businesses to merge with the digital world. It helps them harness the competition and enjoy lots of advantages coming on their way. Integrating digital means businesses have to plan considerable costs.
Moreover, it creates a dichotomy between digitizing and an already thriving brand that is operating traditionally. Today, most businesses, including delivery, have the relevancy of digitalization as it helps them boost their cost efficiency and helps them start digital across the different sectors in Europe.
According to the report, 66% of the manufacturing sector. At the same time, 40% of digital firms, 13% of the service sector, and 11% of the infrastructure sector have opted for at least one digital technology in the EU.
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It is worth noting that most enterprises are in different places on the way to digital transformation. If you find yourself stuck in the digital world, then you’re not alone. One of the command questions that you come across is how to get over the humps from vision to execution. Lagging in the peer on a digital transformation can make you lose various opportunities. Let’s dive deeper into the topic to know more right here.
What is Digital Transformation?
The process of using modern technology for emerging traditional business operations is known as digital transformation. It helps entrepreneurs to satisfy the evolving expectation and market demand. However, it has changed the way how businesses operate and manage overall activities.
Integrating digital technology into different areas of business benefits them and helps them deliver value to customers. It helps entrepreneurs boost their online business presence and helps them overcome difficulty, practice new things, and learn things from failure.
Statistics Helping You Understand the Importance of Digitize
According to Deloitte, digital transformation is about becoming digital, establishments that use modern technology to transform in all aspects. It’s not about transforming; it’s all about how you choose to transform. Some lots can help you adapt to digitalization for your business and change how you do business.
More than 60% of the global population are internet users, while the Northern region of Europe is considered as one of the connected regions with 96% of the population.
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However, digital adoption in Europe has increased drastically; it has jumped from 81% to 95% due to pandemic crises. A rise that might take within three to four years has accelerated speedily due to COVID-19.
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The pandemic has increased the adoption rate by country, but it isn’t confirmed for different sectors. Online grocery ordering and delivery and social media have expected to grow dramatically during a recent year. More than 51% of essential daily suppliers choose digitalization; the number is relatively higher compared to previous years as it was around 29% only.
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In 2020, more than 67% of respondents from Spain SMB agreed that the pandemic had accelerated digital transformation. However, some say the shutdown has slowed down digitization by around 30.5% on average.
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Most entrepreneurs are focusing on providing digital products and services to their customers. COVID-19 roadmaps and strategies made it essential for businesses to offer faster delivery. However, companies in the US and Europe are trying to recover from multiple roadblocks that led to declining sales. Thus they are searching for innovative methods that help them to deliver an improved experience to customers.
How the Pandemic Pushed Businesses to Digitize Their Operations
Digitalization has experienced a dramatic increase, but there is still a significant digital explosion. Every industry is on the verge of getting digital, while the pandemic has given it a final push. Embracing digitalization helps SMBS grow and plays a vital role in resolving customers’ pressing problems in Europe.
Before the pandemic, the shift towards servitization and digitization was undertaken by most businesses. Entrepreneurs’ shift in spending towards digital businesses. For most European startups, cracking the market is a chance for dramatic growth and increased credibility.
Startups tend to engage in risky activities; they face constraints in accessing traditional funding and having formative relations with suppliers and customers. They often rely on small founding tea and can further increase the vulnerability to labor supply shocks during the COVID-19 spread.
Entrepreneurs face economic uncertainty, which was never the same in the past. Startups started becoming more fragile and needed the support of liquidity, which is critical for their survival. Expanding business demands a lot of research, planning, and proper implementation.
The growth in digital adoption is measured in different sectors, including meals, healthcare, grocery, and many more. A tremendous jump is measured in app downloads as customers were forced to stay at home, and hence they were forced to order and get everything delivered at their doorsteps.
Entrepreneurs are surprised by the speed and success of the digitization initiatives in response to pandemics. Digital offerings have increased by seven years; the growth is experienced due to customer expectations, needs, use of modern technology, decision-making, and more.
European Startups That Bloomed Amid a Pandemic
A new online business model uses digital ecosystems and platforms; they have emerged to complement existing business functions or models as a complete business. However, many companies have turned to an online business model; the most adopted is a video consultation.
During the period when grocery shops, cafes, and bars were shut down, delivery apps like Glovo, Instacart, and much more experienced growth in downloads. There are numerous ordering and delivery platforms in Europe that witnessed growth during the COVID-19 spread.
Cazoo
Founded in 2018, Cazoo is an online car retailer platform. The company is headquartered in London, England. Alex Chesterman launched the platform intending to transform the way people finance, rent, or buy used cars. The company operates in the UK and mainland Europe and has sold thousands of cars.
Glovo
Founded in Barcelona in 2015, Glovo is one of the fastest-growing delivery players in Europe. It connected local stores with customers; however, it provided hope to establishments by helping them serve their ideal customers and keep their business operational.
Getting inspired with the working strategy, many owners are investing in an app like Glovo. It helps them to automate various business operations and meet the changing expectations of customers. An easy-to-use system helps brands to manage everything from a platform that also without hassle.
Global Switch
Founded in 1998, Global Switch is the leading operator and developer of large-scale network density. It helps to track records impressively and is proven as best-in-class solution. Today, the company operates ten data centers across Asia-Pacific and Europe, covering 300,000 sq m of world-class technical space with further developments underway.
Hopin
Initially released in January 2019, Johnny Boufarhat founded Hopin. The proprietary video teleconferencing online conference-hosting platform was valued at about $7.95 billion; the remote company has hosted 80 thousand events, working with many companies including NATO, Unilever, and many more.
Klarna
Headquartered in Stockholm, Sweden, Klarna is a Swedish fintech company. It provides financial services like payments for direct payments for online storefronts, helping with post-purchase payments. Klarna has a $31 billion valuation, it was founded by Niklas Adalberth, Victor Jacobsson, and Sebastian Siemiatkowski. The payment solutions for the e-commerce industry successfully manage store claims.
Conclusion
The delivery segment is one of the fastest-growing sectors, and however, the COVID-19 spread has accelerated its growth by multiple times. Digitalization plays a crucial role in the decent proxy of growth for almost all the sectors, including delivery. Many delivery companies experienced drastic growth in the US, Europe, and other counties where they are serving.
Organizations undergoing digitalization often experience the success of their initiatives against multiple metrics, this includes:
- Improve internal communication;
- Enhance efficiency and productivity;
- More resiliency;
- Increased responsiveness.
There are many more on the way. Entrepreneurs operating whatever size of the industry must be prepared to adhere to their changing market and customers’ demands. Modern technology and trends have undoubtedly opened new opportunities to improve business productivity and sales.
Author bio
Nirav Parmar
Nirav is an online marketer and blogger having hands-on experience in crafting creative content. The skills he poses in creative writing is fantastic as his ability to write engaging content attracts the readers. His enthusiastic approach to researching the facts related to the topics is phenomenal. He knows all the latest trends of delivery business, strategies to digitalise SMEs, changing market dynamics etc.