What is digitalization?

Digitalization refers to Using digital technologies to change a business model and provide new revenue and value-
producing opportunities.

Digitalization in business helps to improve the efficiency of its operations, making automation possible. There are
fewer human errors and operational costs are reduced, due to the decreased need for human resources.

Digital technologies have reconfigured the whole business landscape, transitioning from traditional analog to digital.
Data isn’t stored anymore on any storage devices but on the cloud, thus ensuring there are no data silos.

Companies should learn how to bring together collaborative groups in such a way that it contributes to both the
development and creation of surplus economic value.

It’s essential to know how to establish relationships with external communities, but also how and when to capture
value when owning and managing elements of processes.

All in all, digitalization enables a large variety of people to group together, connecting IT and non-IT departments
and impacting the way businesses create value.

To succeed, they need to test and test again. The company’s success today depends on how agile are they.

Advantages of digitalization in business

 Increased efficiency of all operations
 Fewer human errors
 Safer data storage in the cloud
 Reduced operational costs
 Enables data analysis

Digitalization vs. digitization vs. digital transformation

Digitalization vs. digitization 

Simply said, digitalization isn’t possible without digitization. 
Digitization refers to the conversion of information from analog to digital formats. On the other hand,
digitalization refers to the use of digital technologies and digital data to create new value-producing opportunities
and transform the way customers and companies interact with each other.
Digitization is more focused on internal optimization of processes such as work automation and paper minimization
while digitalization goes deeply beyond that.
Digitalization vs. digital transformation
Even though digitalization may often be used as an umbrella term for digital transformation, both of these terms
greatly differ. 
Digital transformation refers to much wider use of digital technologies and cultural change. It’s more about
people than it is about digital technologies. It demands core changes in the organization backed by leadership. 
It emphasizes empowering employees with digital technologies in order to change the corporate culture.