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?
Since you are 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?
So, 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?
To begin with, 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 a computer can process.
Data processing is the foundation of many modern businesses. Therefore, 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.
In fact, 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.
Now, 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.”
In other words, digitalization is 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, the 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 as follows. Upon signing the work contract, HR automatically orders 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 as follows. The employee receives the mobile phone at his/her desk. Moreover, the phone comes with pre-installed online calling programs and meeting systems, ready to use with the relevant contacts.
What is the Business Value of Digitalization?
Now you are familiar with the difference between digitization and digitalization. Next, read up on the real-life values of digitalization for your business:
- Productive employees and companies: Value 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 digitalization tips to take your business further!
- Digital Marketing Strategy
- Business Automation
- Business Set-Up
Without further ado, let’s dive into the topics!
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.
2. Digital Marketing Strategy
Now, this is an exciting topic. We will talk about two points.
Social Media Marketing
First of all, more than three billion people worldwide use social media every month. These platforms thus help you to connect with your specific audience. In fact, 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.
Secondly, boost your business 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.
3. 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!
4. 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.
With the global connection of the world through the internet, customers reach out beyond local markets. As a business owner, this provides an exciting chance to connect to new markets and audiences worldwide.
In other words, a professional multilingual digital presence combined with the right digital marketing and branding strategy will unlock this global potential. Knowing the difference between digitization vs digitalization enables you to skyrocket your business.
China embraces the New Digitalization Era
So, how does digitalization look in practice? Here is a real-world example of one of Tenba Group’s target markets: China. The digital economy growth numbers are going through the roof. In addition, with its innovative technology, the Middle Kingdom is a global digitalization trendsetter.
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.
At the second Digital China Summit in 2019, the latest technology such as driverless vehicles, and delivery robots amazed visitors.
Likewise, in everyday life, “smart” technologies continue to take their place. For example, a smart fire detector, which connects to a user’s mobile phone. Another example is an “SOS button” on a lamp post.
In fact, 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.
As a result, 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
Now, you are able to describe the difference between digitization and digitalization.
To sum it up, 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.
At Tenba Group we offer personalized solutions, which will skyrocket your business. Contact us today for your free website audit. Above all, we believe that digitalization in business is the key to success and growth.
Are you a start-up business wishing to become part of the online community? Or are you an established business searching for ways to engage with a larger audience? We specialize in taking your brand into the modern digital world!
In conclusion, we at Tenba Group are looking forward to developing your individual digitalization strategy to power up your brand.
Digital marketing and branding strategies (social media marketing, SEO) and internationalization are our core expertise, as well as web design & development, business set up, and automation.