Digitization vs digitalization

At a quick glance digitization and digitalization may appear to be the same word, and unless you are in the know, you might assume they imply the same thing. However, they have vastly different meanings, which are especially crucial to know if you are looking to bring your business through the process of digitization or digitalization. So let’s explore both terms!

What is digitization?
Digitization is the process of converting data available in physical form to a digital medium. For example, scanning a document or converting cassette tapes to MP3 files. Simply put, digitization is data conversion from analog to digital. It’s a process that makes data easier to view and share, and it can also improve communication flow.

What is digitalization?
Digitalization is the process of optimising workflow processes by using digital solutions, such as Oversee. It means updating existing business models to increase overall efficiency. A great example of digitalization is workflow automation.

So what’s the difference?
Whilst digitization deals with data itself, digitalization relates to business processes, modules and workflow. If you use the Oversee digital solution, data entry about your employees and their skills would be digitization, whilst delegating the tasks for your employees to see on their Oversee apps is an example of digitalization.

Digital transformation
Another term that is often used in relation to digitization and digitalization is digital transformation. Digital transformation is a much broader term that includes both digitization and digitalization. It goes beyond by creating a comprehensive change to a company’s business strategy. It means cultural, organisational and operational improvements in all departments through the use of technology. Digital transformation includes changes to your company’s culture and work environment, as well as your customer experience. It means becoming a “digital company”.

In conclusion, no matter what stage of digitalization your company is at or what job title you hold, it’s important to know the basic terminology, to avoid miscommunication and misunderstanding. If you’d like to learn more about the topic of digitalization, check out our other blog posts!
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