Digitization? Digitalization? Digital transformation?

Do you know the differences between those three terms?

  • Elena Vižintin
  • 12/19/2022

It is often mistakenly believed that the digitalization of business processes is the same as digital transformation. Of course, this is not true, as digitalization is only the first and, of course, necessary step in the digital transformation, which otherwise represents a comprehensive change in the company's operations. And something without which companies will definitely not survive in the future.

Without digitization, there is neither digitalization or digital transformation.

First, we will stop at the lowest concept of all, ie. digitization. This can be explained by a simple statement: "digitization is the conversion of analog information into digital information".

If we spent a few seconds explaining digitization, the concept of digitalization will require a bit more attention from us. Imagine transferring the things you have on paper to your computer. This means that you no longer have the data stored in paper form, but in digital form and access it in this way. Digitalization is therefore about upgrading existing processes by introducing new technologies. This means that you are now writing something that you previously wrote on paper in excel or other digital documents.

So what is digital transformation? Referring to the above example, it is undoubtedly much more than just replacing paper-based business. Transformation means that the entire business process changes in a way that is new, optimized and more efficient. As a result, the time required to perform work tasks is shortened, the productivity of employees improves and, most importantly, savings are also visible. Digital transformation is therefore something that enables business growth and a company's competitive advantage. It is adapting to the demanding needs of the market. And it is both a challenge and an investment.

So to summarize: digital transformation means a radical change in the way of thinking, perception, operation and the entire organization of the company.

And although the path to digitalizazion and digital transformation can sometimes be really challenging, you don't have to walk it alone. We are here to help you with that. With a clear vision, professional approach and top knowledge.

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