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 considered the three processes’ differences 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. All three 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. It 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, it 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, 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 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 the 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 a little bit of any of these three processes into your business, make sure to consider your options. 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 digitally transform how they operate.
Don’t miss out on the chance to elevate your processes. Take the first step and get started with Quixy today.
Find answers to commonly asked questions about the concepts of digitization, digitalization, and digital transformation. Understand the differences between these terms, their impact on businesses, and the benefits they offer in today’s digital age.
Digitization is the process of converting analog informational data into digital formats. Digitalization, on the other hand, involves the use of digital technologies to improve processes and create new opportunities. Digital transformation is a lot broader concept that encompasses both digitization & digitalization, focusing on organizational and cultural changes driven by digital technologies.
Digitization is the initial step in the process, followed by digitalization, which leverages digital technologies to enhance operations. Digital transformation, however, goes beyond technology adoption and involves fundamental shifts in the organization’s mindset, processes, and business models.
Digitization brings benefits such as improved data accessibility, reduced storage costs, and increased operational efficiency. It enables easier search and retrieval of information, facilitates data analysis, and allows for seamless sharing and collaboration.
Organizations may encounter challenges like legacy systems that are not easily digitized, data security concerns, resistance to change from employees, and the need for significant investments in technology infrastructure.
The main drivers include evolving customer expectations, market competition, disruptive technologies, the need for agility and innovation, and the potential for cost savings and revenue growth.
Digital transformation can significantly enhance customer experience by offering personalized interactions, seamless omnichannel experiences, self-service options, and faster response times. It empowers customers with greater convenience, accessibility, and tailored solutions.
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