What’s the difference between digitalisation, digitisation and digital transformation?

by with No Comment Digital Transformation

Digitalisation, digitisation and digital transformation are three words that sound very similar but have totally different meanings. We?ll take a look at the differences here.

What is digitisation?

Digitisation is the process of converting information from a physical format to a digital one.?It means converting something non-digital into a digital representation to be used by computer systems and automate processes or workflows. Digitisation enables to creation of business value, which needs data.?It helps to lay the foundation for business use cases that leverage the data.

Examples:

  • Scanning a paper document and saving it on a computer’s hard drive as a digital document, like PDF.
  • Going from notes on paper to typing them up in an Excel spreadsheet.
  • Converting from analog VHS cassettes to CD, DVD, or Blu-Ray discs containing digital data.

What is digitalisation?

digitalisation refers to enabling or improving processes by leveraging digital technologies and digitized data. One definition of the word is the utilisation of digital technology in order to streamline and change processes. Customer service is one example. Many businesses have moved from a telephone-based service to a digital solution in the form of a chat facility directly accessible online. Some even use an AI-based chat solution which does not require personnel. Although the method of providing customer service is the same as ever, the process of creating a case has become more seamless since the introduction of digital technology.

Digitalisation of a company needn?t entail digitalisation of the entire operation and is usually a means of making certain processes faster and more straightforward.

Digitalisation increases productivity and efficiency while reducing costs.? Digitalisation improves an existing business process or processes but doesn?t change or transform them.? That is to say, it takes a process from a human-driven event or series of events to software-driven.

Examples:

  • Uploading a PDF document from a computer’s hard drive to the cloud and sharing it with many people to analyze the data;
  • Converting an Excel spreadsheet to a Google Sheet stored in the cloud. The platform provides a structured environment where the documents can be shared among several users. Still, a Google Sheet itself requires human interaction to keep it up to date.
  • Uploading digital movies from CD, DVD or Blu-Ray discs to online services. People can download or rent them.

What is a digital transformation?

Digital Transformation takes place when a company carries out digitalisation of its entire operation, and is thereby a more extensive and wide-ranging process. Digital transformation may involve the gradual digitalisation of internal processes until the company has fully completed the digitalisation process. There is no exact template outlining how digital transformation should be carried out, and how long it takes, but a strategic, goal-orientated approach is a common feature of every process.

Examples:

  • Reading the data from an online PDF or moving the data from a Google Sheet into an app or system that will analyze the data. The goal is to provide us with insights to offer new products or improve customer service. This process doesn’t need a lot of human interaction because is automated. As a result, it enhances efficiency, reduces costs, and may lead to increased sales.
  • Streaming movies online. Collecting data from clients to analyze it, preparing individual recommendations, offers, and advertisements.

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Digital transformation

by with No Comment Business AutomationDigital Transformation

digital transformation is all about becoming a digital enterprise. an organization that uses technology to continuously evolve all aspects of its business models (what it offers, how it interacts with customers, and how it operates

Digital transformation can refer to anything from IT modernization (for example, cloud computing), to digital optimization, to the invention of new digital business models. In general, it refers to the use of digital technology to materially evolve or create new business processes

What are Benefits of Digital Transformation

Increases productivity while reducing labor costs

Using technology to work more efficiently is one of the most impactful ways to transform your business.

More Data-based Insights

When you go digital, you can track metrics and analyze the data you capture during your digital process.

Using data-driven insights can help understand customers better and rethink business strategies, assisting with better decision-making.

Improves the customer experience

customers want a great experience through multiple touchpoints , mobile apps, social media, email, live chat, etc. Digital transformations are the driving force behind improved customer experiences.

Makes You More Competitive in Your Industry

Your competitors are looking into digital transformation regardless of whether or not you are. Choosing not to embrace digital transformation is essentially deciding that you don’t mind being left behind.

Eliminating Time-Consuming Manual Processes via Business Process Automation

By implementing digital technology, you can use software to perform the tasks that were previously being performed manually by staff. Business Process Automation is often seen as the stepping stone to a more holistic digital transformation, but it can also be one outcome.

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What is digital transformation?

by with No Comment Business AutomationDigital Transformation

A digital transformation will look different for every company and for each industry. However, broadly speaking, it describes the integration of digital technology into each area of the business. It results in core changes to how a business operates and delivers its products or services to customers by taking advantage of technological advancements. 

Within a company itself, it requires a cultural shift in how processes are completed. Employees have to become accustomed to experimenting regularly with their processes and even sometimes fail in their efforts to innovate. Businesses might find that they must sometimes step away from the old processes that they knew worked well, in favor of experimenting with innovative solutions that have not had the same extensive testing.

It is only by adopting these best practices and fully integrating the employees into the mindset of digital innovation that brands can remain at the forefront of their industries and continue to serve customers with the care that they have come to expect.

What are the 4 main types of digital transformation?

Business process

The business process part of the transformation refers to how your company functions internally. It looks at how your people respond to the available technology and put it to use in their own work. It includes processes such as incorporating a greater amount of analytics collection and analysis into business decisions to help the company maximize its marketing investments or plan its research and development. It can also mean incorporating automation into internal processes.

Digital transformation in this area looks at ways to help the organization improve its functions. It might do this by decreasing the costs associated with certain processes, decreasing the time-to-market, or it might increase the quality of the product offered, for example. All of these ways would help to increase the value of the brand’s processes through digital technology.

Business model

Digital transformation of the business model requires a careful examination of how businesses within the sector are set up at their core. Transformation here has the potential to cause serious disruption in the industry and power success when done well. An excellent real-life example would be Netflix, which transitioned its movie-watching services away from mail-in DVDs to a streaming service that has had reverberations felt by all the major movie and television producers. 

These types of transformations often work hand-in-hand with the strategic parts of the business, using their eye for innovation and forward-thinking to look at the business potential beyond the established means within the industry.

Domain

Domain transformation refers to the growing capacity of brands undergoing a transformation to think about markets and potential beyond their traditional boundaries. Consider how Amazon, the online retailer, managed to launch Amazon Web Services, which now functions as one of the largest cloud computing and infrastructure services. In other words, they were able to step far beyond the former sector of retail and embrace an entirely new technological potential. Technology offers brands significantly more capabilities to step into new sectors. Many of these opportunities come from emerging technology such as artificial intelligence and machine learning. 

Cultural

The cultural component of the digital transformation requires buy-in from the people on the ground, doing the daily work involved in completing the digital transformation and then engaging with the technology. It can be a challenge for many organizations to make this transformation, as they have to educate their employees and help everyone see the potential for this technology to build the business and better engage the world around them.

Succeeding in building a technologically-focused organization, however, will empower the company to continue to grow. Technology, including its regular updates and innovation, requires a workforce that can easily adapt to changes and people who embrace a culture of continuous education. These traits within the organization will help the brand create positive customer experiences, as the company will be able to adapt its practices and incorporate technology to deliver a personalized experience the customer wants.