Digital Transformation Vs. Digitalization Vs. Digitization
As laypersons, many people often use the terms digital transformation, digitalization, and digitization interchangeably. Doing so is pretty natural and obvious. But it happens either out of ignorance, incognizance, or convenience. However, there’s a difference between digital transformation, digitalization, and digitization. They may sound similar due to the presence of digital in all of them. But closely looking at them will help us strike out the difference between digital transformation and digitalization and digitization.
What is Digitization?
Digitization could be called the most straightforward term among the three. It involves converting analog data into a digital format. Elaborating it more technically, it refers to taking analog information and encoding it into zeroes and ones to enable the computers to store, process, and transmit it. One of the easiest examples of digitization is converting handwritten or typed text into digital form. Digitization involves a few processes. They include the following.
- Sampling and Quantization: The systems capture analog signals at discrete intervals and convert them into a numeric representation.
- Manipulating the Signal: Upon converting it into digital form, the user manipulates the signal for particular purposes.
- Storage and Transmission: Experts then compress the digital data and store it on physical drives and the cloud. Transmitting it over the internet and through other digital mediums is also easier with little quality damage. However, one should understand that digitization is confined to data. It doesn’t touch the process. For that, you need digitalization. So, let’s now look at digitalization.
What is Digitalization?
While digitization restricts itself to data, digitalization walks the extra mile and digitizes analog processes. It is like renewing a conventional and manually-run process by digitizing it, which is making it more technology-driven. Digitalization can benefit enterprises in various ways. Some of them include the following.
Increased Routine Efficiency: Digitalization includes digitizing processes and workflows to make them even quicker and more accurate. It can translate into increased efficiency and productivity for companies, otherwise struggling with our reliance on manual and time-consuming processes.
Information Sharing and Transmission: Digital information is easier to share and transmit than its analog counterpart. It can help companies save space, time, and money otherwise incurred in dealing with analog datasets.
Thus, digitalization is a much more comprehensive concept than digitization. But is digitalization everything in the modern, competitive, and dynamic context? Of course, not! While digitalizing their analog processes, companies should step ahead to reshape their way of doing business. The answer to this is digital transformation.
What is Digital Transformation?
Almost every entrepreneur has heard about digital transformation. But digital transformation isn’t a wave, trend, or fad in the business world. It is a futuristic approach covering a much wider spectrum of aspects like technology, approach, customer experience, etc. Accordingly, digital transformation involves using emerging technologies, streamlining operations, and upgrading customer value propositions.
Digital transformation requires a significant workaround concerning the company’s existing processes, policies, infrastructure, approach, talent, governance, structure, and more. Amidst evolving customer expectations and competition, digital transformation also encompasses developing resilience, agility, and flexibility at the micro and macro levels.
Thus, one can term digitization and digitalization as subsets of digital transformation. It isn’t a technical task but a visionary strategy that sets the company on an ongoing journey of competence and continuous evolution.
Begin Your Digital Transformation Journey with FidelTech!
We hope the above helped you understand the difference between digitalization and digitization and digital transformation. Choose us as your comprehensive partners in digital transformation if you are looking to redefine your organizational approach and emerge as a more competent enterprise. Our digital transformation services, strategies, and resources are prepared to help you drive transformative changes in your organization and unlock the door to more opportunities and success. Please email us at infofidel@fideltech.com to discover our digital transformation services.
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