Does digitalization affect software development?

Does digitalization affect software development?

COVID-19 changed the world. This is the prosaism that everyone wrote about. We know that Amazon has increased its advertising spending by 44% compared to 2020. Giants such as Uber, American Express, Airbnb, Microsoft, and Zillow have created hundreds of processes that have allowed thousands of employees around the world to work remotely. Spotify moves almost 100% to remote work. But what does this mean in the long term for custom software development?

What is digitalization really?

Digitalization is a term that has appeared on the most popular business and technology blogs for years, but it may still be difficult to define it. According to Forbes - digital transformation is the usage of software development to change a business model and provide new platforms or software that simplify the business model and give access to new customers worldwide; it is the process of moving to a digital world.

The world has shrunk again through digitalization

All local businesses have undergone a major renovation today. And the market has become incredibly long, there is much more space today. Doing homework using remote work, visiting a doctor, remote work in uncomfortable industries. All this was not feasible not long ago, today it is commonplace. Today, all local businesses that have never considered putting their business on Google Maps have been there for several months.

The demand for the creation of mobile applications, web applications, or dedicated software that supports the enterprise in the transition to remote work has increased. First of all, the first visible change through digitalization is greater freedom in using services.

Of course, this happens on a micro-scale - a shoemaker who has never been available on the Internet suddenly provides a platform that allows you to repair shoes over the Internet. The macro scale is primarily the wide-ranging activities of large enterprises.

Digital transformation means simplification

It has accelerated the exchange of information, and the increasing access to remote services has meant that poor social groups, seniors and the disabled have access to tools that previously only operated offline. Interactive classes for people with disabilities, applications for meeting seniors caused a real explosion.

Transformations in the field of creating mobile and web applications are also taking place. Android and iOS have gone a long way in a simplified design that is literally available to everyone. Due to COVID-19, many companies specializing in creating applications have noticed this trend, which results in the fact that we are surrounded by very clear and nice digital products. Often these projects are created with the help of IT outsourcing, which has recently been getting worse and worse.

Has software development felt the impact of digitalization?

We are still on the rising tide that started sometime in May 2020. Many companies then unblocked their funds and began to nervously invest them in software development. Huge corporations started to create completely new services, new functionalities and reach a new group of consumers. Small businesses started to create web and mobile applications to at least to some extent transfer their business and save revenues.

This is the only sensible decision that could be made in these extremely uncertain times that did not provide any predictions as to when COVID-19 might end. Many of these ideas have fallen, many of these apps lie somewhere at the bottom of the Apple Store and Google Play without any comments or ratings. There were many reasons for these failures, but when it comes to the impact of digital transformation on software development, the demand was huge and there is still further.

All software houses, IT recruitment agencies, IT staff augmentation companies, and software vendors felt a huge increase in interest, as did e-commerce companies. There is a huge amount of industries that have felt a great relief after COVID-19 has spread more and more. Many niches were created which, regardless of their specificity, needed software.

Many companies that have specialized for many years in software development were established in a short time. Of course, it is very difficult, but possible to separate real professionals from amateurs who have found a niche.

AI implementation, UX adjustment, building a new software

Digital transformation and all kinds of business transformations require action on data. As long as the business is profitable and brings meaningful profit, rebuilding UX design can be a bad move, but adding new functionalities can open up the business to new opportunities.

A company with a slightly outdated design should focus on creating changes in the appearance of its software. Making such decisions requires specific feedback and sales funnel research. Without this information, making any changes is groping in the dark.

Where should you start digitizing your business?

By collecting data, gaining valuable feedback from customers and business partners, you are able to improve your business, or even digitize the entire venture. An important issue is also the specific observation of the market, competitors' activities, and the consistent implementation of specific activities that bring your company closer to the transition from offline to online.

However, if your business was already based online, but you only offered simple functionalities on the website - it may be worth spreading your wings and creating a mobile or web application that would be much more convenient for your clients. Startups that look very holistically at software development know literally everything about this topic.

How to prepare for business digitalization through software development?

The first layer is primarily a good substantive preparation before starting business digitalization. So why would you go online, will this investment really bring my business more revenue, is the digital transformation the only sensible decision for my business?

The second layer is to define specific functionalities, parts of the business that can be included in a new mobile or web application. Here it is worth finding out how to choose the right software development company!

The third layer is to actually create the solution and validate it with the market. Research, data, and feedback are important, but often the market is so volatile and demanding that the time of creating a given product or solution could change the situation and the digital online transition may fail.

business digitalization

Business digitalization - application in practice

1. Possibility to reach new customers, without any location restrictions

By going online and with the right marketing skills, it is possible to reach people across the globe. This is an amazing convenience, but such digitalization of business also carries many obligations. For example, adjusting the business to the applicable regulations in a given country, taking care of data security, or having linguistic skills.

2. Quick access to all enterprise resources

Having all the necessary information about your company, access to finances, call planning, marketing, and sales activities is a real business gamechanger. Such a platform is often called an ERP system.

3. Fast information transfer

Thanks to the possibility of a quick flow of information in the company, decisions are made much faster. When you are going through the digitalization of your business, there is a high probability that it will be one of the factors that will directly translate into increased revenues.

What exemplary functionalities can start a digital transformation?

First of all, it is worth mentioning here about the expansion of current functionalities that the business has. Of course, creating a completely new project, a new mobile application, or a new web application is always a great opportunity for higher long-term company revenues. But implementing IoT, AI, machine learning, BigData, AR, or VR is a real change today. Software developers who are able to carry out such digital transformations are hardly available - so it is worth going to a software development company that will take care of you and your business from A to Z.

Each such step towards new technologies makes customers feel appreciated, they know that you want good for them and you make sure that your service or product is even closer to their perception. A product adjusted thanks to artificial intelligence will always be better than a generic approach to a website. It is worth remembering that digital transformation is primarily intended to reduce the feeling of uncertainty in your future client.

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Jakub Jodłowski