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DIGITIZATION, DIGITALIZATION, AND DIGITAL TRANSFORMATION: WHAT’S THE DIFFERENCE?
Do you look like this guy right now?
Did you have to blink your eyes to see it right? You’re not the only one. Although very similar to each other, each word has its own specific meanings and implications.
Digitization is the process of converting analog to digital. On the other hand, digitalization uses digitized data and digital technologies to generate more (digital) revenue streams, influence how work gets done, and transform how customers/companies engage and interact.
In another framing approach, digitization efficientize processes and lowers costs. Digitalization is a process/strategy that involves a wholesome/fundamental change to the whole business model and work evolution.
Industry members often regard digital transformation as a subset of digitalization, however the terms are quite different. The former requires a wider horizon of digital technology adoption and change management within the businesses. Simply put, digital transformation, or DT as often abbreviated, relates more towards the organization’s people: involving organizational changes which are customer-focused and leveraging technologies that encourage and support employees.