Digitization Digitilazition Digital Transformtio

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 !!

What is “Digitization”?

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.

Examples:

  • Scanning bills, documents, and files
  • Transferring meeting minutes and notes from paper into an excel sheet
Digitization Digitilazition Digital Transformtio

What is Digitalization?

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.

Digitalization is seen as the middle step between Digitization and Digital Transformation towards the creation of digital revenue streams.

Examples:

  • Moving PDFs and word documents into a shared cloud
  • Making personal resources with relevant data available to the business
  • Creating online, downloadable video databases

Also read: Digital Modernization a Must. Modernize your Enterprise IT today!

What is Digital Transformation?

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.

Digital transformation marks a radical rethinking of how an organization uses technology, people, and processes to fundamentally change business performance.

George Westerman, MIT principal research scientist and author of Leading Digital: Turning Technology Into Business Transformation

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.

Examples:

  • A system analyzing the data from an excel sheet on your cloud and classifying the data by its importance and relevance
  • Online video streaming
  • Suggesting business changes through computer analyzed data

Comparison between Digitization, Digitalization, and Digital Transformation

Digitization makes Data Digital, Digitalization Leads to Digital Business, and Digital Transformation requires Digitization and Digitalization

Digitization Digitalization Digital Transformation
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
Challenge Volume
Material
Price
Financial
Resistance to change
Human Resource
Example Scanning paper-based registration forms Completely electronic registration process Everything electronic, from registration to content delivery

Also read: Digital Transformation Demystified !!

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.

To learn more, you can request a free demo or sign up for a free trial.

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