For several executives, the terms digitization and digital transformation are interchangeable. The problem is that even the providers often use ambiguous definitions of words, resulting in a buzzword that is often used for marketing purposes. Since all is digital, if one were to speak of fully digitising an organisation, one would have to either digitise everything or rely solely on robots and intelligent devices with IoT.
Different experts use the terms digitization and digital transformation in various ways. For others, the distinction can be minor or insignificant, but when it comes to businesses and their strategies, the words are critical.
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What is digitalization?
The process of compressing analogue media into bits and bytes so that it can be accessed in digital form is known as digitization. Films, videos, and other media may be used. Analogue and physical products, on the other hand, are always digitally replicated, copied, or distributed. The original is also in good condition.
What is digital transformation?
When it comes to digital transformation, business areas and procedures are examined, but the understanding extends well beyond merely adapting them to emerging digital technologies. For example, in digital transformation, solutions are pursued or problems are reopened and solved with the help of technology. The paper, for example, is not simply digitised and then processed; it is evaluated to see whether the process is still necessary or whether it can be streamlined with the aid of new technology.
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As a result, digital transformation is nothing more than resolving challenges using the most advanced technological tools available. To some extent, this often refers to concepts like "agile," "design thinking," "brainstorming," and other new ways of operating, since they are required to take a distinct approach to problems. Once these problems are understood, they can be resolved using technical means and emerging technology.
Digitalization results in Digital Business, which necessitates Digital Transformation. Digitalization and Digital Business
“Digital transformation is the profound and exponential transformation of business practises, processes, competencies, and models to fully harness the changes and opportunities of digital technology and their effect through society in a strategic and prioritised way,” according to Google's English definition.
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We now have digital content as a result of digitalization. This content can then be processed using digitised processes, leading to the development of a digital business strategy. However, digital transformation goes above and beyond. Digital content, digital processes, and a digital business model are all essential, but digital transformation considers all facets of the business. Customer demands, creative consumer technologies, business opportunities and challenges, and, finally, the "new economy" are all factors to consider.