Digitization, Digitalization And Digital Transformation: What's The Diference?

DIGITIZATION, DIGITALIZATION

AND DIGITAL TRANSFORMATION:

WHAT’S THE DIFFERENCE?

BY Roberto R. Díaz Blanco

Despite endeavor in innovative digital technologies and focus of their competitive necessity, there is uncertainty surrounding how to leverage these chances to create a digital transformation strategy.

Some of this confusion probably lies in the language that we use. More specifically, the misapplication of two key phrases related with digital transformation – digitization and digitalization. These phrases are frequently used interchangeably with digital transformation; however, they point to very distinct things.


  • WHAT IS DIGITIZATION?

In its most simple sense, digitization is the method of changing from analog to digital form,

additionally recognized as digital enablement. For example, converting tracks from CDs and

vinyl records to MP3s or paper archives to digital documents saved on a computer.

In business, this procedure frequently looks like initiatives such as legacy modernization or transferring a system online. The conversion or representation of physical or non-digital matters into a digital structure means that this data can now be used with the aid of a pc system.

Creating digital variations of these so-called “physical carriers of information” permits us to extract information that can be processed, transmitted, or used to optimize processes. In this respect, digitization additionally includes the automation of current manual and paper-based processes.

Essentially, digitization creates value by way of reducing charges and laying the foundation for commercial enterprise use instances that leverage data.

  • WHAT IS DIGITALIZATION?

Disentangling digitization from digitalization might also seem like a nit-picky exercise, however they are very distinct ideas with very distinct implications.

One useful definition of digitalization is – “the use of digital technologies and digitized data to have an effect on how work gets done, seriously change how clients and corporations engage and interact, and create new (digital) income streams.”4

Basically, digitalization can't happen besides digitization. To refer again to our example of converting paper archives to digital documents on a computer, a digitalization initiative right here may want to include uploading these files to the cloud to radically change collaboration and reporting techniques and the usage of analytical tools to generate insights and actionable know-how to mitigate threat and promote effectivity on future projects.

Whereas digitization is the method of making existing data and processes digital, digitalization embraces the capacity of digital technology to seize and verify data to make higher business choices and allow new commercial enterprise models.

  • WHAT IS DIGITAL TRANSFORMATION?

Digitalization is a vital step closer to digital transformation and has a massive influence on product, provider delivery, and people. It marks a way of life shift within an organization, reshaping how value is created and business is conducted.

Digital transformation is broader than this; greater than making use of technological know-how to current business, it is the capability to swiftly adapt when required through the smart use of technologies and information.

To borrow the frequently used definition, “digital transformation is the profound and accelerating transformation of business activities, processes, competencies, and models to totally leverage the modifications and opportunities added by using digital technologies and they have an effect on throughout society in a strategic and prioritized way.”

To deliver it collectively with the previous terms, it is a wider strategic and non-stop mission that depends on the integration of digitized data and digitalized applications.

  • WHY IS DIGITAL TRANSFORMATION IMPORTANT?

The basic purpose of digital transformation is to amplify the productiveness and creativity (decision making, connectivity, innovation, and augmentation) of people and organizations. Here, technologies – such as clever devices, cloud and fog computing, big data and analytics, social media and networking, cognitive computing, and artificial intelligence – supply exceptional right of entry to pools of know-how and resources, resulting in increased innovation and outcomes.

In addition to radically extending the reach of organizations, digital transformation seeks to take advantage of the probabilities and possibilities afforded with the aid of new technologies in a faster, better, and extra modern way. For this reason, high quality techniques apprehend that the end purpose will proceed to go as genuine digital transformation is an ongoing journey, as is change and digital innovation.

Digital transformation, essentially, positions businesses to emerge as agile businesses, placing them up to rapidly detect, respond, and adapt to modifications in customer and worker expectations and demands and the wider commercial enterprise landscape.


  • FINAL THOUGHTS

The expectations of the industry go past the delivery of initiatives to include the provision of job opportunities, environmental enhancement, region regeneration, or expanded accessibility. More importantly, the industry is capable of handing over these challenge results and, by means of prioritizing the maximization of social value, can power very crucial social transformation.

Digitization and digitalization can be considered as the first steps on a digital transformation journey. Understanding the difference between these ideas is imperative to developing a practicable digital transformation strategy, organizing where your business enterprise currently is in this journey, and harnessing the possibilities added about by way of these procedures individually.










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