DX – Digitization, Digitalization and Digital Transformation

Reference: Digitization vs Digitalization: What’s The Difference? ( by Haissam Abdul Malak

Digitization and digitalization are parts of a digital transformation.

“Digitization is the process of changing from analog to digital form, also known as digital enablement. Said another way, digitization takes an analog process and changes it to a digital form without any different-in-kind changes to the process itself.” Gartner

Gartner illustrates digitalization as the use of digital technology to transform a company model in order to improve revenue and value-added prospects. It is the process of moving to a digital business.

  • Digitalization  incorporates the process of adapting old business models to new technologies and embraces digital technology’s potential to collect data, identify patterns, and make smarter business decisions.
  • These procedures and interactions may not be entirely digital, but they do rely on digital technologies more heavily than they did previously.
  • Digitalization necessitates the digitization of information. Organizations cannot embark on the digitalization path unless they have digital assets and automation is one of the most effective ways to implement it.
  • The automated execution of operations undertaken without human oversight is referred to as automation. RPA, or Robotic Process Automation, is one of the most prevalent types of automation technologies. One of the most benefit of automation is the ability to automate business rules. They are critical to the smooth running of any business. They set goals, provide job performance standards, monitor compliance, and help organizations automate operations.

Important features of digital transformation are summarized below.

  • Digital transformation necessitates a much wider use of digital technologies as well as a shift in culture. People are more important than technology when it comes to digital change.
  • It necessitates customer-centric organizational reforms that are backed by leadership, driven by radical corporate culture challenges, and the use of technology that empowers and enables people.
  • The term “digital transformation” refers to a shift in business activity, model, and competencies in order to make use of newly accessible technology. Organizations are undergoing digital transformation as they embrace new and creative business models based on technology advancements. It’s the process of fundamentally changing anything utilizing digital technologies, and it refers to the use of technology and, perhaps, cultural shifts to better or replace what was previously available.
  • Digital transformation is an ongoing process, not a one-time activity. It introduces new business models and alters the way businesses are conducted. It will go a long way toward ensuring that the end consumer is satisfied, which is the whole point of doing business.

My understanding of digital transformation, at this moment, may be summarized as follows.

  • DX involves the entire organization, goes beyond digitization of information and digital communication, and changes fundamentally how the organization interacts with clients and customers.
  • Some examples of innovative changes are online sales and queries using AI (chatbots, RPA) to quickly identify the client/customer’s needs and offer solutions, optimization through analytics, and automation of marketing processes.
  • It is an on-going process of adopting new technologies and renewal of technological capabilities.