What is Digital Transformation? Distinguish between digitization and digital transformation

What is digital transformation? Distinguish between digitization and digital transformation

The wave of digital transformation is even more urgent during covid. So what is digital conversion? Are digital transformation and digitization the same term? Distinguish between digitization and digital transformation? Please read the detailed article below.

Digital Transformation
Digital Transformation


What is digital transformation?

Digital transformation is also known as digital transformation or digital exchange. Digital transformation is the integration of technology and digital into an organization’s business processes. The main goal is to improve operational efficiency and improve user experience. Furthermore, digital transformation creates a competitive advantage in the market.

Digital transformation doesn’t have to completely change a company’s model immediately. Digital transformation starts with small steps to reap huge benefits over time. Start from small things like digitizing company documents.

What is digital transformation?
What is digital transformation?

What is digital conversion for?

What is digital transformation, we already understand the concept, but what is digital transformation for?

Covid created social distancing, on the other hand, digital transformation created a new kind of connection: linking thoughts, data, people, resources and means of production in a completely different way. Methods previously only seen in sci-fi movies.

Digital transformation requires an organization to have the determination to change from the “roots”, continue to challenge and change habits, continue to try new things and learn to adapt to failure and change. Because of this, many organizations struggle in the digital transformation process because they cannot let go of their core values, cannot accept failure, or are unwilling to walk an “unusual” path for unpredictable results.

What is digitization?

Digitization is the Digital Transformation process of converting paper-based information and manual processes into a digital format. Simply put, digital conversion is the conversion of physical documents stored on a computer into soft documents stored on a computer.
Like scanning an invoice or converting a paper contract to a PDF. The data is not modified – it is only stored in digital format.

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Digitization is essential for data processing, storage and transmission. Because it “allows information of all types in any format to be carried with equal efficiency as well as interleaved”.

Data stored in physical form is usually more stable. But digital data can be more easily shared and accessed. Digital data is not lost over time and across data duplications, as long as it is converted to a new, stable format.

Distinguish between digitization and digital transformation

The terms digitization and digital transformation are often used by businesses. But these two terms still cause confusion. So what is digital conversion? How is it called digitization?

Digitalization and digital transformation are two very different terms. Digital transformation requires the adoption of many digital technologies and cultural changes. Digital transformation is more about people than it is about global digital technology. This requires customer-centric organizational change. Digital transformation needs to be supported by leadership, driven by challenges to corporate culture. Leverage technology that empowers employees.

Requirements for digitization in the company

Managers will start by determining how their business will prepare for Digital Transformation. Digital disruption will replace traditional data warehousing operations with digital solutions. Therefore, the main task of the manager is to change the activities in the company. This helps digitization be combined with digital innovation to create entirely new sources of value.

Digitalization requires managers to change not only the combination of activities. Digitalization requires the technological capabilities of employees in companies. Therefore, business owners need to equip employees with the necessary skills to participate in the operation of the digitization process.

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Steps to Digital Transformation your business

Step 1: Get ready for change Digital Transformation
Step 2: Ignore the previous business cycle
Step 3: Expand the scope of metrics analysis beyond “web analytics”
Step 4: Optimize User Experience
Step 5: Data-driven decisions
Let’s start by changing the number of accounting related jobs with accounting software. It is an important job related to cash flow, business strength. Therefore, it must be a top priority in digital transformation.

Thus, the way to differentiate between digitization and digital transformation is most clearly seen in the following point: digitization is the first step in the process of digital transformation, to bring information stored in physical form to digital.

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