Using digital technology has become a key growth strategy for companies in France that want to expand. However, several industries (e.g., real estate, agriculture, health, and education) are still slow to embrace digital transformation.

What is digital transformation, and how does it help companies grow? How can companies seize digital business opportunities? In this article, we explore the concept of digitization and explain how to launch and successfully implement the digital transformation of your business.

What’s in this article?

• What is business digitization?
  
• What types of French businesses are impacted by digitization?
  
• Importance of digital transformation for businesses in France
  
• What risks are associated with not digitizing?
  
• Tools for digital transformation
  
• Successful digital transformation for businesses in France
  

What is business digitization?

Digitization occurs when a company improves its productivity and competitiveness by integrating digital technologies into all activities. This type of transformation is more comprehensive than simply going paperless or adopting digital tools, such as cloud software or videoconferencing platforms. Instead, digital transformation involves completely modernizing a business’s operations and strategies, including how it creates and communicates its value. Digital transformation impacts a business at all levels.

What types of French businesses are impacted by digitization?

Customers are increasingly connected. Because of this, most businesses—from small businesses to multinational corporations—are digitizing internal and external processes. Independent contractors and sole proprietorships should also reconsider how they operate in the digital era.

Companies do not undergo digital transformations all at once. Instead, digitization is progressive and implies a change in culture. It’s important to begin the digital transformation process as soon as possible to avoid missing out on new opportunities.

Importance of digital transformation for businesses in France

Digitization is required for a company to thrive in a competitive market. Companies that embrace digital transformation adapt better to market fluctuations and customers’ changing needs.

Digital transformation can help companies do the following:

• Automate repetitive tasks, reduce data entry errors, and increase operational efficiency
  
• Increase visibility and relevance with prospects
  
• Gather valuable data to help with decision-making and organizational leadership
  
• Develop new sales channels and simplify and personalize the customer experience
  
• Offer improved products and services and benefit from new opportunities
  
• Improve internal cooperation and communication with business partners and customers
  
• Increase profits, reduce expenses, and generate sustainable growth
  

What risks are associated with not digitizing?

Companies that are slow to digitize could be outpaced by competitors who adapt to markets by adopting new technologies and changing their business models. A company that has digitized its operations has more access to data than a traditional company. Companies that resist digitization can still improve their processes and decision-making but with less precision. Companies must have an internet presence to stay relevant and attract new customers. Not having one can negatively impact long-term success.

Note: Netflix, Amazon, and Spotify are three companies that radically transformed their business models to follow market trends. Due to their digitization efforts, they remain leaders in the global market and have generated significant growth for their shareholders.

Tools for digital transformation

There are many digital tools available in the marketplace, including the following:

• Customer relationship management (CRM) software
  
• Enterprise resource planning (ERP) software that centralizes data from all business departments
  
• Bookkeeping software and automated billing systems (e.g., Stripe) that automate administrative tasks
  
• Human resources (HR) software
  
• Messaging tools (e.g., Slack) and videoconferencing applications (e.g., Zoom, Microsoft Teams, Google Hangouts)
  
• Collaborative suites (e.g., Google Workspace, Microsoft Office 365) that help manage remote work and store data
  
• Project management solutions (e.g., Asana, Trello, Notion)
  
• Social media, ecommerce sites, dedicated mobile apps, and marketplaces
  
• Artificial intelligence (AI) that processes large volumes of data, analyzes it in real time, and makes predictions
  

Stripe Invoicing is a powerful solution that efficiently creates and sends invoices, automates revenue recognition, and speeds up payments. Stripe Tax can help with value-added tax (VAT), determine tax obligations, manage tax registrations, and calculate and collect the right amount of tax. With Stripe Revenue Recognition, companies can gain a more complete view of revenue, generate ready-to-use accounting reports, and compare financials from any period.

Successful digital transformation for businesses in France

There are many ways to achieve successful digital transformation. Each company has its own needs, and each industry has different requirements. To successfully transform for the digital age, businesses can get advice from experts and take advantage of financial assistance from BpiFrance—the well-known French public investment bank—or France Num, a government initiative that assists with the digital transformation of French small and medium-sized enterprises (SMEs). Additionally, they can access a wide range of resources and services offered by the Chamber of Commerce and Industry (Chambres de commerce et d’industrie, or CCI).

Companies should start the transformation process by analyzing their current processes. This planning phase can lead to a better understanding of a business’s needs. It is also valuable to study competitors’ business practices.

After this analysis, businesses can use this information to define goals and priorities. For example, a business might consider this question: is the main goal of digital transformation to improve the customer experience or to automate invoicing?

The next step is for the business to identify the solutions available in the marketplace to facilitate the digital transformation. The company should select efficient digital tools best suited to its needs and consider each option’s costs and benefits.

A business should also develop an implementation plan that includes a deployment schedule and detailed training program. It’s important to support staff during the transition and facilitate improved digital skills.

During the transition, it’s useful to ask for feedback. Businesses can use employee and customer input to analyze the impact of the digital transformation in progress and adjust their strategies accordingly.

Lastly, it’s important to remember that digital transformation in a professional environment takes place gradually. It’s possible to integrate digital tools progressively and modify workflows at the same time. This can help avoid disrupting existing business functions.