Digitization, digitalization, and digital transformation are all terms that have been very prominent since the late 2000s. They have been used interchangeably, often for the wrong reasons have potentially not been given the importance they deserve.
Have you ever gotten in a conversation where someone is talking about putting their business through the process of digitization? Have you ever thought about the differences between the three processes of digitization, digitization, and digital transformation and what they truly mean for a business? While most people are not that clueless, there is a missing link in terms of the direction these terms provide and we want to sort those out today.
None of these terms exist without one another. While digitization, digitalization, and digital transformation are somewhat the same since their inception, there have been advances and adjustments in how they are defined over the years.
Let’s explore !!
Digitization is a conceptual term that holds many associations across a variety of literature. Digitization is the term for creating a digital version of analog things. It is converting physical matter into digital format. For example paper documents, microfilm images, photographs, and more into bits and bytes that define them.
All in all, digitization is the simple process of re-representing non-digital data in a digital format that can then be used by the computing system in a variety of ways and for different functions. Thus, in this whole process, nothing of the original document is lost. While in many cases the original item is destroyed to clear up space, but in any case, it lives on in digital forms.
Digitalization in most cases in business refers to improving business processes, business functions, business operations, and more by leveraging the new technology the digital space provides. It allows new systems to be set up in the context of digitalization to make business easier and achieve any/ all benefits the business may have in mind.
Digitalized businesses can lead to digital businesses and increased scope for business growth. On average, digitalization in this sense of the word is seen as the middle step towards digital transformation and the creation of digital revenue streams.
Digital transformation is the business-wide process of going digital, It is ahead of the silo-based structure created by digitalization and allows for massive growth potential. It is focused on faster, more efficient, and more pointed digital growth.
Digitalization and digital transformation are often confused and used interchangeably, however it is not completely right to do so. Digital transformation in the context of today has a much broader scope than digitalization. It requires many more hurdles to be crossed by a business to create and implement a digital transformation strategy as compared to digitalization.
|Focus||Data Conversion||Information processing||Knowledge leveraging|
|Goal||Change analog to digital format||Automate existing business operations and processes||Change company’s culture, the way it works and thinks|
|Activity||Convert paper documents, photos, microfilms, LPs, films, and VHS tapes to digital format||Creation of completely digital work processes||Creation of a new digital company or transformation to a digital one|
|Tools||Computers and conversion/encoding equipment||IT systems and computer applications||Matrix of new (currently disruptive) digital technologies|
|Resistance to change
|Example||Scanning paper-based registration forms||Completely electronic registration process||Everything electronic, from registration to content delivery|
If you are looking to bring even just a little bit of any of these three processes into your business make sure to consider your options in doing so. Quixy offers an easy, no-code approach to digitalization and will help your business on its way to complete, successful, digital transformation. Today, organizations across verticals are using Quixy to digital transform how they operate.