Digitalization, Digitization, and Digital Transformation – What’s the Difference?
The era of digital transformation is more than just the buzzwords being thrown here and there. While most of these jargons are distinguishable from one another, some are defined with fine lines of differences that make them seem interchangeable which could cause confusion and miscommunication. An example of this are the words digitization, digitalization, and digital transformation. But before you run out of hair pulling them out trying to make sense of how they differ from one another, here’s a handy guide to start you off.
Digitization
Digitization, by its essence, refers to the conversion of information like pictures or sounds into ones and zeroes or a digital form that can be stored, processed, and transmitted by computers.
In a day to day basis, almost everybody digitizes something, from encoding handwritten notes into Microsoft Word, or scanning hard copies of documents into a PDF format.
It is important to remember that it is the information you’re digitizing, not the process. This is where digitaliztion comes in.
Digitalization
As defined by Gatner IT Glossary, “digitalization is the use of digital technologies to change a business model and provide new revenue and value-producing opportunities; it is the process of moving to a digital business.”
Digitalization is an adaptive approach of working around how users interact with digital information using technologies applicable to it. It is moving from analog to digital inputs. Examples include changing from using pen and paper to take notes, to using a laptop; from sending letters through snail mail, to sending e-mails.
The definition of digitalization is still being discussed and is yet to have its sole meaning, from academics defining it as a social interaction (Brennen and Kreiss, University of North Carolina School of Media and Journalism), to corporations like Gartner defining it as a change in business model and business operation, but we believe that these are all interrelated.
The difference between them is that digitization deals with the information, while digitalization deals with the process.
Digital Transformation
“The idea is to use technology not just to replicate an existing service in a digital form, but to use technology to transform that service into something significantly better*,” as put together in ZDNet’s article.
Digital Transformation deals with the business strategy and involves using digital technologies to make an existing process become more efficient and effective.
The Enterprise Project focuses on the social and customer experience aspect defining it as “the integration of digital technology into all areas of a business, fundamentally changing how you operate and deliver value to customers. It’s also a cultural change that requires organizations to continually challenge the status quo, experiment, and get comfortable with failure.”
Beneath these terminologies lies a crucial concept: digitalization is helping businesses disrupt the established economic order. It is almost imperative for companies to follow suit as this is where the world is heading – where the virtual and the actual world works together. Are you feeling woefully behind? Worry not! Controtek Solutions offers products focusing on the digitalization and digital transformation of a business. Be a part of our growing industry partners pushing for a smarter, more connected Philippines.
Sources:
Splash photo vector created with Freepik assets – www.freepik.com
Gartner IT Glossary (© 2019). Digitalization. Retrieved from https://www.gartner.com/it-glossary/digitalization/
Jason Bloomberg (2018, April 29). Digitization, Digitalization, And Digital Transformation: Confuse Them At Your Peril. Retrieved from https://www.forbes.com/sites/jasonbloomberg/2018/04/29/digitization-digitalization-and-digital-transformation-confuse-them-at-your-peril/#6e89b1642f2c
The Enterprise Project. What is digital transformation? Retrieved from https://enterprisersproject.com/what-is-digital-transformation
*Mark Samuels (2018, May 22). What is digital transformation? Everything you need to know about how technology is reshaping business. Retrieved from https://www.zdnet.com/article/what-is-digital-transformation-everything-you-need-to-know-about-how-technology-is-reshaping/
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