What budget for the digitalization of your organization?

Digital technology has completely changed and changed our private and professional lives. Now, smartphones, computers and tablets have become essential tools for consuming, interacting with others and working, which requires a certain budget.

In business, multiple applications, software and other collaboration platforms have changed working methods and allow employees to be more efficient and productive on a daily basis. Today, the way organizations operate has evolved and all data (or almost all) is processed and stored digitally. Work documents, invoices, expense reports, etc. are created and completed directly on digital media, leaving paper and pens in the drawers.

The majority of businesses have already completed their digital transformation, but for those who have not yet gone completely digital, one question can hold them back: how much does it cost to digitize their organization?

What is digital transformation?

For a company, digital transformation consists in modifying its organization, its functioning, its culture, its strategy and its working methods in order to integrate new digital technologies. To do this, the company must adopt various digital tools that allow it to improve the employee experience, the customer experience and its profitability.

Digital transformation involves in particular the dematerialization of documents, the implementation of electronic signatures, the use of various applications and software to promote collaboration and facilitate communication within teams. Some of the most used professional digital tools currently include:

• instant messaging,
• A system of video conferencing,
• CRM (Customer Relationship Management),
• project management software,
• a content management tool,
• an online storage tool,
• human resources management tools (recruitment, payroll, leave, etc.),
• the corporate social network.

Today, digital transformation has become an imperative for all businesses, regardless of their sector of activity, in order for them to continue to exist in a sustainable way, to attract new customers and to develop.

To successfully digitize, find out what budget you need to plan for.

How much does digital transformation cost?

It is difficult to give a precise figure when it comes to the cost of digital transformation because, as with many things, it will depend on your needs, your requirements, your choices and the desired quality. Your budget can also go from simple to double if you are starting from scratch or if you have already started digitizing.

Here are the elements you need to take into account for the digitalization of your organization, and an idea of the budget you will have to devote to it.

Acquire the essential hardware and digital tools

To begin with, you will probably need to acquire new high-performance computer equipment. This includes:

• desktop computers (between 400 and 1500€ per unit)
• laptops (between 800 and 1000€ for a mid-range device),
• basic accessories (speakers, cables, etc.),
• multifunction printers (between €150 and €900 per unit),
• smartphones (between 400 and 1000€ per unit),
• possibly tablets (between 350 and 800€ per unit),
• software.

To avoid unnecessary expenses, don't forget to define your needs well in advance.

Also note that it is possible to rent your computer equipment rather than buying it. This allows you to renew them more easily and cheaply as soon as they are obsolete.

For software, rather than buying a license, you can opt for SaaS (Software as a Service). It is a monthly subscription that includes various services in addition to the use of the software, such as maintenance, support, backup management, etc.

Finally, note that, according to Manaps, the average IT budget for French companies represents between 2 and 4% of turnover, with a maximum of 9% for financial services companies (banks, insurance companies, etc.).

Data migration

During the digital transformation of your business, it is essential to digitize your data and transfer it to your devices, software and/or storage spaces. This is called data migration. This must be done meticulously to avoid any leak, loss, hacking or virus infiltration.

The migration of your data can be carried out by a competent company from which you will have to request a quote or via specialized software (such as Microsoft Azure Data Box or Acronis) whose rates are generally on request.

Provide maintenance, support and assistance

When digitizing your business, it is important to plan a budget dedicated to the maintenance of computer equipment, but also to the support and assistance of your employees in the event of technical problems or failures on a device or software.

Perhaps you have your own IT department with in-house technicians to take care of repairs, support and support for employees as well as software updates. In that case, that's fine.

But if that's not the case, companies like Itaia or Computerland can provide you with these types of services. The best is to ask them directly for a quote according to your needs.

Training employees in new tools

Training is an essential position in the digital transformation of an organization. So it should not be overlooked. Indeed, many employees risk opposing the digitalization of their profession for fear of change and of no longer being able to do their job. It is therefore imperative to train them in the new tools and practices put in place. The aim is for them to acquire the necessary skills, to be reassured, to feel confident and to continue to be productive on a daily basis. You also need to train new employees who come to the company.

It is difficult to give an accurate estimate of the cost of training because it must be calculated according to several criteria such as the type of training, the content and duration of the training, the skills of the trainer, the number of employees to be trained, the level of qualification of the employees, etc. We must also think of additional costs such as the location of the training, transport, meals and possibly accommodation.

Finally, be aware that there are grants to finance the training of your employees such as the CPF (personal training account) or tax credits.

Need help with your digital transformation? Discover How to succeed in your digital transformation and be inspired by these three examples of successful digital transformations.