{"id":787,"date":"2020-06-15T20:18:10","date_gmt":"2020-06-15T20:18:10","guid":{"rendered":"https:\/\/www.axcontrol.com\/blog\/?p=787"},"modified":"2021-03-10T19:05:17","modified_gmt":"2021-03-10T19:05:17","slug":"digitalization-vs-digitization-whats-the-difference","status":"publish","type":"post","link":"https:\/\/www.axcontrol.com\/blog\/2020\/digitalization-vs-digitization-whats-the-difference\/15\/06\/","title":{"rendered":"Digitalization and Digitization: What’s the Difference?"},"content":{"rendered":"\n
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Digitization\/binary code<\/figcaption><\/figure>\n\n\n\n

If you read industry publications, you’ve probably already come across the terms digitalization<\/strong> and digitization<\/em> a couple of times today. But do you know the difference? <\/p>\n\n\n\n

It’s easy to confuse the terms. But understanding how they differ will help you gain the most information and understanding of the digital mindset. <\/p>\n\n\n\n

What is Digitalization? <\/strong><\/h2>\n\n\n\n

According to IGI Global, Digitalization<\/strong> is the “adoption of digital technologies to modify a business model….by exploiting digital network dynamics and the giant digital flow of information.” On the other hand, digitalization<\/strong> leads to the creation of a digital business. According to Gartner, this is “the creation of new business designs by blurring the digital and physical worlds.” More about this in a minute. <\/p>\n\n\n\n

What’s the Difference between Digitization and Digitalization? <\/h2>\n\n\n\n

Digitization<\/em> is where digitalization<\/strong> begins, in the conversion of analog data into a digital form that can be processed by a computer. Digitalization<\/strong> transforms digitized<\/em> data through the use of digital technologies like automation, computing, coding, AI, or IoT(to name a few) to change how work gets done. And while digitization<\/em> can optimize and change the process to create a better workflow, reduce costs, or minimize waste, digitalization<\/strong> creates a core change that affects the entire business model. <\/p>\n\n\n\n\n\n\n\n

How does this compare to Digital Transformation? <\/h2>\n\n\n\n

Now let’s introduce a third term: digital transformation. Digital transformation happens when a business fundamentally changes through the integration of digital technology into its business model in a way that delivers significant value to all of its customers, and perhaps to all of society. <\/p>\n\n\n\n

The significance of this is obvious: digital transformation is about people and not about the technology itself. Even though it relies on digitization and digitalization, it is only when it creates an effect upon people that it can be called “transformation.” <\/p>\n\n\n\n

There are four basic types of digital transformation. These are<\/p>\n\n\n\n