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Writer's pictureTimothy Laku

What is digitization? What is digitalization? What is digital transformation?

On XFM this week, I was honored to share with the listeners the meaning of some of the "buzz words" that many experts have been using interchangeably. What is digitization? What is digitalization? What is digital transformation? It was an insightful conversation.

Maritza, the XFM host, and Timothy in a deep conversation at the XFM studios this week

What is digitization? What is digitalization? What is digital transformation?


For some, the differences may be marginal or unimportant but when it comes to your business, and your strategy, these terms are not marginal by any means - Words Matter!


What is digitization?

Digitization, according to Gartner Inc, is the process of changing from analog to digital form.


Digitization takes analog information and changes it to a digital form without any changes to the process itself


The outcome of digitization is data. There must be an infrastructure in place to allow for accessibility and connectivity to the digitized information - this is where the internet comes in. The ubiquitous inter-connectivity of all these devices give rise to the term IoT (Internet of Things)


There is no business value in simply digitizing. The value is in how you leverage the data. Digitization is simply an enabler that creates data which is where the value is realized.


Digitization is about converting something non-digital into a digital representation. When we scan a paper document and save it as a digital document, that is digitization.


Converting music from an LP into MP3 format is digitization. Converting handwritten or typewritten text into digital form is digitization. Remember, it’s the information you’re digitizing, not the process!


What is digitalization?

Digitalization, according to Gartner Inc, is the process of employing digital technologies & information to transform business operations. It's the use of digital technologies to provide new revenue & value-producing opportunities


Digitalization refers to enabling, improving or transforming business process by leveraging digital technologies and digitized data. Digitalization happens after Digitization.


The outcome of digitalization is improved business efficiencies. This is possible through automation of business activities and business process optimization.


What is digital transformation?

Digital Transformation is when a company fully leverages digital technologies to transform business activities, processes, competencies, and business models


We digitize information, we digitalize processes and roles that make up the operations of a business, and we digitally transform the business and its strategy


The objective of digital transformation is to gain a competitive edge and to earn money as a business. This is achieved by rethinking the business model, culture, and introducing new digital products. Ultimately, the business wants to better serve it's customers, lower its costs, and increase its bottom line.


Digitization and digitalization are essentially about technology, but digital transformation is not. Digital transformation is about the internal & external customers of a business


Digital, when used as an adjective, describes the dominant use of the latest digital technologies to improve organizational processes, improve interactions between people, organizations, or make new business models possible.


Tune in to Digital Thursday on XFM 94.8 from 9 am to 10 am radio.visiongroup.co.ug

Be part of the conversation on Twitter @timothylaku and follow the hashtags below


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