Insights

Digitization vs Digitalization: What’s The Difference?

You’ve heard the terms digitization and digitalization is thrown around a lot lately. But what’s the difference between digitization and digitalization? And which one is better for your business?

The answer depends on your needs and goals. If you need to make physical copies of documents or want to store data in its original format, digitization would be the way to go. But if you need to share information with others or want to make it available online, digitalization would be more appropriate.

Learn more about digitization and digitalization by scrolling down!

What is digitization?

Information is converted from a physical format to a digital one through the process of digitization. The term “digitize” describes the process of turning anything that isn’t already digital into a form that computer systems may use to automate processes or workflows.

According to Gartner, “Digitalize” is the process of converting from analog to digital form, also known as “digital enablement”. In other words, digitization converts an analog process to a digital one without making any other changes to the process itself.

Therefore, information should be easier to access, store, preserve, and distribute through digitization. Digitalization is the only way for organizations to improve the effectiveness of their daily operations and automate them.

Digitization Examples

Examples of digitization include converting handwritten writing to digital form, converting music and video files to digital format, using digital signatures, and converting VHS tapes to DVDs or Blu-ray discs:

• The process of converting typewritten or handwritten material to digital format.
• The process of converting video from a VHS tape or music from an LP.
• Digital data-containing CDs, DVDs, or Blu-Ray discs from analog VHS cassettes.
• The substitution of a digital signature for a wet signature is one of the most significant digitalization examples.
• The process of scanning paper maps into digital versions while automatically collecting data.

What is digitalization?

The use of digital technology to alter a business model to increase revenue and value-added prospects is known as digitalization. It is the transition to a digital business model.

Moreover, digitalization embraces the capability of digital technology to gather data, spot trends, and make better business decisions. It also encompasses the process of updating outdated business models with new technologies.

In addition, the capacity to automate business rules is among the benefits of automation. They are essential to the efficient operation of any firm. They establish objectives, offer guidelines for work performance, keep track of compliance, and aid firms in automating processes.

It goes with saying that organizations need to adapt constantly to survive. Organizations have no choice but to start the journey of digital transformation in the contemporary, digitalized environment.

Digitalization Examples

According to McKinsey research, banks go digital by using AI/ML to automate up to one-third of their processes to reduce costs and do away with human mistakes. JP Morgan Chase’s COIN, a data-driven automation tool, analyzes complicated documents using a private cloud network and machine learning techniques. The technology can reportedly complete ordinary tasks that once required up to 360,000 hours in only a few seconds.

Which has more advantages, digitization or digitalization?

After the above clear definitions, now it’s time to learn the benefits of digitization and digitalization.

What advantages does digitalization offer?

Digitalization also presents opportunities for innovation in various industries. By integrating technology into their processes, companies can automate repetitive tasks and improve efficiency. 

In the healthcare industry, digitization has enabled telemedicine, allowing patients to consult with doctors remotely while also improving record-keeping and data analysis. In education, digitized materials have made learning more accessible to students all over the world. The list of industries being revolutionized by digitization continues to grow as technology advances.

Despite some concerns about privacy and security risks posed by digitization, it is clear that the advantages it offers far outweigh any potential drawbacks. As we continue to embrace digitization in our everyday lives, it will only continue to bring about progress and convenience for individuals and industries alike.

What advantages does digitization offer?

The advantages of digitization are numerous and far-reaching. In the business world, digitized documents can be readily shared among employees and remotely accessed, saving both time and resources. 

Digitization also allows for more efficient data storage and retrieval, as well as the opportunity for automation in various processes. The digitization of media has had a tremendous impact on the entertainment industry, providing consumers with easy access to their favorite songs, movies, and books through streaming services and online libraries. 

Moreover, digitization has improved communication by facilitating instant messaging and video calls with just the touch of a button. Overall, it offers countless benefits in terms of convenience, efficiency, and access to information.

Conclusion

Even though these two words are often used interchangeably, there is a big difference between digitization and digitalization. At SmartOSC DX, we understand the importance of digitalizing your business to stay ahead of the competition. We can help you take your business to the next level with our cutting-edge services that will digitally transform your company. Contact us today to learn more about how we can help you achieve success in today’s digital age.