Corporate Digitalisation: how Italian companies are changing

Digitalisation is redefining the corporate landscape, transforming not only operational processes but also how businesses interact with their customers and tackle challenges in the global market. In an economic context that demands rapid and continuous change, Italian companies must adopt increasingly advanced technologies to enhance competitiveness, efficiency, and resilience.
This article explores how digital transformation is reshaping Italian companies, analysing emerging technologies, investments, support policies, and adopted approaches.
 

WHAT IS CORPORATE DIGITALIZATION?
  

Corporate digitalisation is a critical process involving adopting and integrating digital technologies into a company’s daily operations to improve operational efficiency, increase productivity, and optimise the services offered to customers.

It is not just about implementing isolated technologies but transforming business processes through a holistic approach that involves all company functions. Digitalisation is not confined to a single department but has a cross-functional impact, spanning from Finance to Marketing, Sales to Logistics, to create an interconnected and agile workflow.

Innovative technologies such as artificial intelligence (AI), robotics, cloud computing, the Internet of Things (IoT), blockchain, and data analysis are revolutionising how businesses operate and interact with customers. For example:

• AI enables businesses to automate complex processes and make data-driven decisions, improving operational efficiency and personalising the customer experience.
• Cloud computing offers flexibility and scalability, giving companies access to advanced computing resources.
• IoT ensures continuous connectivity between devices, allowing real-time monitoring of company assets.
• Blockchain, with its secure and transparent features, is applied to areas such as transaction management and supply chain traceability.
• Data analysis allows companies to extract valuable insights from large datasets, guiding strategic decision-making.

In today’s economic and entrepreneurial landscape, digitalisation is a strategic factor for addressing the challenges of an increasingly interconnected and rapidly evolving world. Companies adopting digital technologies can respond more quickly and effectively to market challenges, boosting competitiveness and cutting costs. Furthermore, digitalisation promotes continuous innovation, which is essential for adapting to rapid changes and new customer demands while staying aligned with global trends.

THE ADVANTAGES OF DIGITALIZATION FOR BUSINESSES

Digitalisation is transforming every aspect of business, and companies must adapt quickly to harness the potential of new technologies.

Businesses that optimise internal processes, leverage real-time data, and enhance operational efficiency gain a tangible competitive edge. By analysing large volumes of data, they can make faster decisions, predict changes, and optimise processes in real-time, reducing risks and improving adaptability.

Companies that embrace digitalisation with commitment can achieve significant strategic benefits:

• Speed and Simplification of Work
  Digitalisation reduces time and resources spent on repetitive administrative tasks, such as document management and automated invoice processing. This allows employees to focus on higher-value strategic activities.
• Increased Security
  Automating processes reduces the risk of errors while improving the precision and reliability of controls. Digital transactions, protected by technologies like encryption, lower the risk of fraud and ensure greater security.
• Greater Business Efficiency
  For large companies, digitalisation improves cash flow management, increases the speed of operations, and provides immediate access to data. This enables faster decision-making and greater flexibility in responding to the demands of an ever-changing market.
• Fostering an Innovative Culture
  Companies that adopt a robust digital strategy not only improve performance but also foster a culture of continuous innovation. This allows them to respond nimbly to future challenges and achieve sustainable competitive advantages.

In essence, digitally advanced companies are more resilient, innovative, and capable of facing global competition, making digitalisation a true strategic lever for long-term growth and competitiveness.

THE DIGITAL DECADE AND EUROPEAN GOALS FOR BUSINESSES
 

In recent years, businesses have embarked on a path of technological adoption in line with the strategic objectives set by the European Commission under the Digital Decade program, targeting ambitious goals by 2030.

The Commission has outlined two key milestones for businesses:

• 90% of companies must reach at least a basic level of digitalisation, as measured by the Digital Intensity Index developed by Eurostat.
• 75% of companies must adopt technologies such as cloud computing, data analysis, or artificial intelligence (AI).

These technologies have been selected to promote European industrial competitiveness.

• Cloud Computing
  Cloud technology meets businesses’ needs for flexibility, cost savings, and scalability by reducing operational and infrastructure expenses. By leveraging third-party computing resources and applications, companies can optimise data management, storage, and processing while accessing always-up-to-date solutions. Cloud computing also serves as a critical enabler for data analysis and AI.
• Data Analysis
  Data analysis allows companies to gather and evaluate information across the entire value chain, generating valuable business insights and boosting competitiveness. Analysing business data and customer requests enables the activation of predictive and automated systems, allowing businesses to respond to market demands in real-time.
• Artificial Intelligence
  AI opens new horizons and can be applied across various sectors, from services to customer care, fraud protection, and business process optimisation.

Through the integration of these technologies, businesses can not only meet the ambitious 2030 targets set by the European Union but also position themselves as leaders in innovation, resilience, and global competitiveness.

THE STATE OF DIGITALISATION IN ITALIAN COMPANIES

According to the 2024 Country Report on Italy’s Digital Decade, Italian companies are making significant progress, with 60.7% achieving at least a basic level of digital intensity, surpassing the European average by 3 percentage points. However, the adoption of advanced technologies, such as artificial intelligence (AI), remains limited: only 5% of Italian companies use AI, compared to the European average of 8%. Another area for improvement is the use of data analytics, which only 26.6% of Italian companies currently leverage, significantly below the European average of 33.2%.

On the other hand, Italy stands out in cloud adoption, with 55.1% of companies adopting cloud technologies, exceeding the European average of 38.9%. This demonstrates the importance of cloud computing in enhancing the flexibility, cost efficiency, and scalability of Italian companies.

The National Recovery and Resilience Plan (PNRR) has allocated a significant portion of resources to digitalisation, with specific interventions to encourage the adoption of innovative technologies and solutions. As of February 2024, Italy has achieved 25.6% of its digitalisation targets, marking substantial progress in modernising the economy.

These figures highlight that while Italian companies are advancing in areas like cloud adoption, further investment in AI and data analysis is essential for international competitiveness. Digitalisation remains a continuous process, requiring ongoing commitment to bridge gaps and foster sustainable, competitive growth.

DIGITALISATION IN COMPANIES: TRENDS, INVESTMENTS, AND APPROACHES

Digitalisation is undoubtedly a priority for businesses, as confirmed by a 2024 survey conducted by Intesa Sanpaolo’s Corporate & Investment Banking Division, which involved around 500 medium and large companies. The survey revealed a significant increase in digital investments compared to previous years.

• 37% of companies now allocate over 4% of their revenue to digital investments, compared to just 17% in 2020.
• Only 7% of companies reported making no investments, a significant decrease from 19% in 2020.

The main areas of focus and investment include cybersecurity, cloud computing, ERP integration, big data, and artificial intelligence. These are expected to be the primary drivers of change for companies over the next decade.

Despite the push toward adopting advanced technologies, companies still prioritise internal processes, such as automation and software integration. Digital integration with banks is often seen as the next step.

The survey also highlighted varying speeds in the digital transition:

• 22% of companies describe themselves as pioneers, striving to be at the forefront of innovation.
• 49% take a timely approach, adopting already-tested market innovations.
• 29% are more cautious, waiting for new technologies to be fully established before adoption.

Barriers remain, particularly around process integration and concerns about operational risks such as malfunctions or uncertainties related to AI use. To overcome these challenges, businesses need to invest in training to address resistance to change and the lack of digital skills.

BANKING TOOLS FOR BUSINESS DIGITALIZATION
 

In such a complex and diverse environment, banks play a crucial role as strategic partners, supporting businesses in selecting the financial tools best suited to their specific needs.

Banking tools for operational digitalisation are transforming the way companies interact with banks on a daily basis. Corporate Banking, for example, serves as a gateway to new commercial and relational opportunities.

Banks offer advanced document management solutions that enable businesses to access banking services quickly and securely without the need to visit a branch.

This includes the use of digital signatures, which allow documents to be signed securely without printing or mailing paper copies. This tool makes it easier to digitally sign and exchange contracts and banking documents, use services such as invoice financing or trade finance, manage working capital, and purchase operational products directly from digital banking platforms.

Moreover, banks are expanding their offerings through partnerships with fintechs, providing innovative solutions often powered by artificial intelligence. These technologies stand out for their quick implementation and greater flexibility, enabling businesses to access tools that not only support growth but also transform their business models, allowing companies to quickly adapt to market changes.

Through these innovations, businesses can benefit from tools that enhance their efficiency and competitiveness, enabling them to grow and thrive in an increasingly digitalised economy.

Digitalisation is an essential strategic lever for Italian companies looking to remain competitive in an increasingly interconnected and dynamic global market. It is not only an opportunity to optimise internal processes but also a true growth engine that, when implemented effectively, can enhance productivity, security, and operational efficiency.

While progress has been made, Italian companies must take further steps, particularly in adopting advanced technologies like AI and data analysis. With the support of public policies and active involvement from the banking sector, digital technology adoption can continue to offer a concrete opportunity to build a sustainable, innovative, and competitive future.

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