The distinction between digitization vs digitalization can be confusing. Is digitization a synonym for digitalization? And what has digital transformation got to do with it all?
If you’re reading this, chances are that you are familiar with digitization in your private life and job environment. But are you ready to conquer the digital world and boost your business in exciting new markets?
In this blog article, we will explain the difference between digitization and digitalization. So that you can use these terms with confidence and join the digital playground.
1. What is Digitization?
Digitization is the process of converting something physical (analog) into digital data (virtual). A common digitization example is the transformation from analog to digital cameras.
Other examples are the conversion of books, CDs and DVDs into eReaders, mp3s and online streaming services. In other terms: the conversion of text, pictures, or sound into a digital form (data), which can be processed by a computer.
As data processing is the foundation of many modern businesses, digitization jobs like researchers, archivists and data analysts become more relevant. Through the automation of data, companies can focus their time and energy on adding value to their customers.
The practical advantages of digitization reflect the importance of digitization. It includes reducing costs and the ecological footprint, as well as ease of access and disaster recovery.
What is the Business Value of Digitization?
Digitization itself has no business value. However, it lays the foundation for a business to process data. It thus enables the creation of business value, which needs data.
This leads us to the next point in the differentiation between digitization vs digitalization.
2. What is Digitalization?
The Gartner glossary defines digitalization as “the use of digital technologies to change a business model and provide new revenue and value-producing opportunities.” It further defines digitalization as “the process of moving to a digital business.”
Digitalization, therefore, can be described as an innovative way of doing business. It is the utilization of technology to create customer experiences, to become agile and unlock new values and potential.
Let’s look at an example of digitalization. A company hires a new employee, who needs a mobile phone for work. He/she thus contacts the HR department to request a mobile device. Then, HR processes this request and receives the phone. After one week, the employee is ready to communicate with his/her new gadget.
In automation, the process will look like this: Upon signing the work contract, HR gets triggered to automatically order a mobile phone including a SIM card and subscription. The telecommunications company will arrange everything at once. And the employee will have the phone ready at his/her workplace from day one. The company adapts the employee onboarding process.
If this company implements the process of digitalization, the scenario will look like this: The mobile phone is delivered and set up with online calling programs and online meeting systems, ready to use with the relevant contacts.
What is the Business Value of Digitalization?
Now that you are familiar with the difference between digitization and digitalization, read up on the real-life values of digitalization for your business.
- Productive employees and companies: Value is created from day one
- The flow of information: All parties have the same state of knowledge without gaps
- Reduced time and cost input: Invest your time and money in customer experiences, innovation, and growth
- Efficient and sleek processes: This gives you more energy to focus on business development
- Access to the global playground: Unlock the limitless potential of the digital world
- Accurately target and engage your audience: Increase your leads and sales
How does this look in practice for your business? Next, read up on the five specific actions you can take so that your business will flourish.
5 tips for the Digitalization of Your Business
Are you trying to figure out how to chart your success online and harness the power of digital marketing? Here are 5 tips, which are guaranteed to take your business further!
- Website: A modern and responsive website adds to the authenticity of your business. It allows customers to find your company on search engines. A professionally developed and designed website makes it easy for your company to tackle new digital avenues.
- Digital Marketing Strategy
- Social Media Marketing: More than three billion people worldwide use social media every month. These platforms thus help you to connect with your specific audience. It increases awareness of your brand and boosts your leads and sales. With less cost per person reached, social media marketing is a low-cost and smart tool.
- SEO: Get your business noticed online with intelligent search engine optimization strategies. Users trust search engines. And having a presence in the top positions will increase your website’s relevance and visits. Accurately target and engage your audience, and lower your marketing cost at the same time.
- Business Automation: Automating your business processes serves to increase the efficiency of your business. An ISG research found that automation and the use of artificial intelligence are likely to triple by the end of 2019. Don’t miss out on this opportunity for your business!
- Business Set Up: As digitalization continues to conquer all markets, more and more businesses take advantage of choosing a strategic location. Relocating to the place, which offers the best conditions for your company, can reduce tax payments, connect you to new markets and provide security against legislation changes among other advantages.
- Internationalization: With the global connection of the world through the internet, customers are no longer bound to local markets. As a business owner, this provides an exciting chance to connect to new markets and audiences worldwide. A professional multilingual digital presence combined with the right digital marketing and branding strategy for your audience will unlock this global potential.
Knowing the difference between digitization vs digitalization enables you to skyrocket your business.
China embraces the New Digitalization Era
How does digitalization look in practice? Here is a real-world example of one of Tenba Group’s target markets: China. With digital economy growth numbers going through the roof and innovative technology, the country is a global trendsetter in the field of digitalization.
China is home to dynamic digital innovators and is a leading global investor in the latest technologies. According to the Chinese National Bureau of Statistics, China’s digital economy reached about 3.9 trillion USD in 2017. That is a growth rate of 20%. And in 2018, the digital economy accounted for more than 30% of the country’s GDP.
During the first Digital China Summit, which was held in April 2018, the latest technology such as unmanned stores, driverless vehicles and delivery robots attracted thousands of visitors.
In everyday life, “smart” technologies are being rolled out. For example, a smart fire detector, which is connected to a user’s mobile phone or an “SOS button” on a lamp post.
The Chinese market – and the digital one in particular – holds numerous business opportunities for local and foreign companies. Unlock this potential with customized digital marketing campaigns, tailored to your needs, to reach the customers you desire.
3. What is Digital Transformation?
Digitization is the first, and digitalization is the second step towards digital transformation. Digital transformation is integrating digital technology into all areas of a business.
This fundamentally changes, how a business operates and how it delivers values to customers. It is also a cultural change within a company to challenge the status quo, experiment, and get comfortable with failure.
This is the Difference between Digitization and Digitalization
Digitization or Digitalization? Digitization describes the conversion from analog to digital, for example, cameras.
Digitalization adds value to a business, it minimizes time efforts and reduces costs. It utilizes technology to create customer experiences, to become agile and unlock new values and potential.
This is the difference between digitization vs digitalization.
Digitalization in Business – the Key to Success and Growth
At Tenba Group we offer personalized solutions, which will skyrocket your business. Contact us today for your free website audit.
We are specialized in taking your brand into the modern digital world – whether you are a new company interested in becoming part of the online community or an established business searching for ways to engage with a larger audience.
Tenba Group is looking forward to developing your individual digitalization strategy together with you, to power up your brand. Digital marketing and branding strategies (social media marketing, SEO) and internationalization our core expertise, as well as web design & development, business set up and automation.