A Digitized World: Benefits and Limitations of Digitization in Organizations - Thesis Example

The researcher has tested the different facets of the digitization process, which influence the success or failure of the digitization process in a firm. By means of this, the researcher has gone on to conclude that if the process is advantageous or disadvantageous. The motive behind this approach of the researcher can analyze the response of digitalization in different parts of the world and how productivity or advantageous it has been. Having done the analysis of the findings the researcher is of the opinion that the process of digitization is advantageous for firms that have implemented it and firms looking to implement this process should go ahead with this initiative.

Globalization is the biggest phenomenon of the 21st century. It has brought changes that have shifted the competitive and operating paradigm of business firms altogether (Blair, 2004, p. 64). Companies operating in this paradigm are becoming cost-sensitive, in addition to this, there is an unprecedented emphasis on raising productivity and efficiency on business enterprises (Beaverstock, Smith, Taylor, Walker, and Lorimer, 2000, p. 43). To meet these requirements, companies have started to shift their core business functions to locations where these functions can be performed more cost-effectively, amongst these functions are product designing, manufacturing, customer support and etch (Archibugi and Pietrobelli, 2003, p. 861). Moreover, companies, in order to raise their operational effectiveness, are also outsourcing their supplementary business processes and concentrating on their core business processes.

Experts believe that the success of today’s firms depends upon their ability to operate globally and in a cost-effective way (Chen, 2005, p. 135). These two capabilities should be complemented by innovations that farther an organization’s desire to operate in a globalized world. The role of information technology in today’s organizations has never been that important.