The concepts of digitization, digitalization and digital transformation are complex and similar, but despite the important distinction, we clarify the difference between these three concepts to give you a better understanding of the digital world.

What is digitization?

The concept of digitization is often confused with the word digitalization even though they are two separate processes, although they are obviously correlated.

Digitization is simply when something analog and physical is converted to digital form. With the help of digitization, businesses can then drive digitization and digital transformation forward.

What is digitization?

Digitization is about simplifying and streamlining work processes using digital solutions. However, the digital technologies are not digitization itself, but the concept is rather about streamlining manual tasks through the use of digital technologies.

A digitalization process is often a major digital transformation, where companies actively invest in streamlining operations through the use of a new digital infrastructure such as web-based solutions.

Thus, digitalization can be simply described as the process a company takes to streamline operations by integrating new digital technologies.

Read more about digitalization here.

What is digital transformation?

A company’s digital transformation can be simply explained as the change towards a more digital world. Digitization and digitization together lead to digital transformation, which creates new opportunities for businesses to adapt and innovate with the help of digital technology.

Digital transformation is the last step, after the business has built a long-term digital strategy to create improved processes. Among other things, through cost savings, increased sales, transparency and control.

In short, digital transformation is a process of change towards a more digital future.

Summary

The differences between digitization, digitalization and digital transformation are small, but therefore also important.

  • Digitization is when something analog and physical is converted to digital form.
  • Digitization is the process that a company does to streamline operations by interacting new digital technologies.
  • Digitization and digitalization together lead to digital transformation of companies, a process of change towards a more digital and efficient business.