As technology only continues to develop and evolve, the world we live in is becoming more and more digitalised. In this digital era of technological advancement, the terms “digitisation”, “digitalisation”, and “digital transformation” are frequently used interchangeably.
However, did you know that they are 3 entirely different concepts? Have you ever considered how the 3 concepts differ from one another and the value they may bring to businesses? In this article, we explore the differences between digitisation, digitalisation, and digital transformation.
The process of transforming tangible objects into digital format is referred to as digitisation. For example, document scanning, where the text from actual paper is turned into PDF or other digital formats and then stored in the computer, is an example of digitisation.
Physical items or information are stored in technological devices during digitisation, but the method in which this data is utilised may not be altered. This is the main distinction between digitisation and digitalisation! Through digitalisation, processes are made possible or enhanced by using digital technologies and digitised data.
3. Digital transformation
The main goal of digital transformation is to incorporate technology into the majority, if not all, operations. Digital transformation helps to radically increase workflow efficiency and add value for customers by integrating digital technology into every aspect of the business. In other words, digital technologies are integrated to implement operational, organisational, and cultural improvements.
How these 3 concepts differ and their value to businesses
The main difference between these 3 concepts is their purpose and outcome.
As mentioned earlier, digitisation aims to transform information from analogue to digital format. The main focus of this concept is to gather information that will later be employed in digital technologies. On the other hand, the purpose of digitalisation is to leverage digital technologies to improve business processes. Oftentimes, digitalisation will lead to increased productivity and efficiency. Lastly, digital transformation focuses on adding value to the customer experience by changing how a business runs.
Despite their differences, these 3 concepts cannot exist without one another. Digital transformation is facilitated by digitisation and digitalisation. Digital transformation, which is the highest level, starts with data that is encoded into the system (digitisation), which is then employed by the computer to enable or improve a process (digitalisation). When utilised together, these 3 concepts may aid businesses in adapting to the ever-changing environment and industry.
It is remarkable and rather intimidating how quickly technology has advanced and integrated into our lives. Conventional business models are may not be as feasible because of how quickly we are now able to adapt to new forms of communication and product discovery. With digital transformation, businesses can respond to rapidly shifting market conditions and industry landscapes. Check out our previous article for more information on the benefits of digital transformation for businesses!
Digitisation, digitalisation, and digital transformation are 3 different concepts that work together to help businesses stay relevant and remain competitive in our ever-evolving digital age.
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