As the hype around digital transformation continues to persist, the terms ‘digitization’ and ‘digitalization’ join the fray, increasing the level of hype while adding confusion.
In reality, these three terms have distinct meanings – or at least, we can make them distinct depending on which authority we’re listening to.
This question is more than a semantic exercise, however. In reality, people are confusing them in ways that shortchange the power and importance of digital transformation, thus putting the very survival of their organizations in peril.
Digitization: The Straightforward Term
Digitization essentially refers to taking analog information and encoding it into zeroes and ones so that computers can store, process, and transmit such information.
According to Gartner’s IT Glossary, “Digitization is the process of changing from analog to digital form” – a definition few would disagree with.
There are many examples of digitization in enterprises today, as there have been for many decades. Converting handwritten or typewritten text into digital form is an example of digitization, as is converting the music from an LP or video off of a VHS tape.
In the enterprise context, digitization is important both for dealing with analog information as well as ‘paper-based’ processes – where ‘paper-based’ is nothing more than a metaphor for analog.
It’s important to remember, however, that it’s the information you’re digitizing, not the processes – that’s where digitalization comes in.
Read the entire article at https://www.forbes.com/sites/jasonbloomberg/2018/04/29/digitization-digitalization-and-digital-transformation-confuse-them-at-your-peril/.
Intellyx publishes the Agile Digital Transformation Roadmap poster, advises companies on their digital transformation initiatives, and helps vendors communicate their agility stories. As of the time of writing, none of the organizations mentioned in this article are Intellyx customers. Image credit: leighklotz.
