Digitization vs digitalization: what are they, main differences and examples

Despite the increase in innovative digital technologies, there is still uncertainty about how to capitalize on these opportunities to develop a digital transformation strategy. Some of the confusion is most likely due to the language we use. More specifically, the misunderstanding of two key terms: digitization vs digitalization. These terms are have different concepts. As the following, AHT TECH JSC will mention the definitions, main differences and examples of Digitization vs digitalization. So let’s look at it carefully. 

What is digitization?

Digitization vs digitalization

Let us begin with the more widely used term, digitisation. Simply put, digitization is the conversion of analog platforms and methods to digital ones. It includes converting analog, non-digital material to digital format. For example, keeping digital records of production rather than paper-based records. Business processes can also be digitized. 

Furthermore, consider scanning a photograph or converting a paper report to a PDF format. The data itself is not altered. It will be converted in a digital format. Digitized data is used to automate processes and improve accessibility. So it can result in increased efficiency; 

What is digitalization?

Digitization vs digitalization

Digitalisation is the process of transforming your company into a digital one. This is why digitalisation is also known as digital transformation. This is accomplished through the use of digital technologies. So digitisation is a part of digitalisation. It is, however, only a part of it. This is due to the fact that digitalisation entails changing or adapting your business model, rather than simply digitizing your data, processes, and actions.

As a result, the company will become more efficient and productive. Furthermore, digitalization can provide you with new revenue-generating chances.

Digitization vs digitalization

Advantages of digitalization

Delivering deep insights to inform real-time decision-making

Assessing performance and ROI has traditionally been a backward-looking process for many companies. Businesses can see real-time data and tailor powerful analysis methodologies with the modern ERP system and advanced analytics. Therefore, they can make the best decision.

Increasing efficiency and productivity

IoT network devices and machines continuously transmit data and performance reports. Moreover, this data, combined with advanced analytics, can support predictive maintenance. Moreover, it also help reduce downtime. Besides that, it provides insights for more productive and efficient workflows.

Improving the customer experience

Your customers expect you to meet their needs on their terms. Customization, omnichannel access, personalized customer plans, and real-time data access can help you meet their constantly changing expectations. Meanwhile they also help increase leads and drive loyalty and retention.

Driving business model innovation: 

Changing consumer and market demands are putting a greater emphasis on business model innovation as a means of creating value. However, in order to change and modernize fundamental business models and customer experiences, businesses have to collect and analyze real-time data. Moreover, they also have to develop automated and intelligent processes. Therefore, they can manage new business, payment, and service models.

Contributes to a strong and competitive corporate growth strategy

After businesses use connected technologies to digitize their operations and optimize their services, they discover new ways to streamline future business growth strategies, such as:

  • Creating new goods and services
  • Increasing profitability and boosting revenue channels
  • Getting and keeping new leads and customers

Advantages of digitalization

Digitalization is important for businesses. Because it enables new ways of thinking and strategies in how the businesses perceive their role within its ecosystem and their potentia. Thanks to it, they can increase profitability.

Boosting customer experience 

Thanks to the assistance of ERP systems, the businesses can understand their customers. As a result, they can consistently deliver a five-star experience.

Mobility

Coming to the new era of digitalization, businesses can also drive innovation in production, logistics, and customer service. Investment in new technologies keeps businesses ahead of the trend. Therefore, they can meet consumer demand for the latest mobility solutions. Moreover, they still remain true to the brand.

Sustainability

To meet these requirements, businesses can use real-time data from their digital business platform. As a result, they can improve decision-making, streamline operations, and reduce customer response times.

Digitization vs digitalization with AHT TECH JSC

Do you consider Digitization vs digitalization for your business? If so, how did you start right now? Most businesses start by consolidating all data from across the businesses into a centralized and integrated ERP system.  The advantages of an ERP system include increased efficiency, modernization of business processes, and improved visibility into business data. Therefore, you can have faster decision-making based on better data.  Our Odoo ERP solutions also allow businesses to quickly adopt and adjust processes and models in response to constantly changing business conditions. In addition, in case you need the consultation. So our Business & Technology Consulting Services are always ready for your businesses. Don’t miss these awesome opportunities. More importantly, read our BLOGS to get more useful information. 

Leave your information into CONTACT FORM if you have any questions about our blogs and services. AHT TECH JSC are happy to serve you

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