top of page

Digitization, Digitalization, and Digital Transformation

Digitization, Digitalization, and Digital Transformation. What is it?
Digitization, Digitalization, and Digital Transformation

The recent trend of digitalization, digitalization, and digital transformation has been around since the late 2000s. The most important thing is that they've not been given the attention they deserve because they've been used interchangeably and often for the wrong reasons.

Many executives associate digitization, digitalization, and digital transformation with one another. Providers themselves make unclear definitions of the terms, which leads to the term degenerating into a marketing buzzword.

Would you find it interesting to review the differences between digitization, digitization, and digital transformation and how they impact your business? The terms are crucial when referring to strategies and operations for businesses.

Have you ever thought about the differences between the three processes of digitization, digitization, and digital transformation and what they truly mean for a business? when it comes to companies and their strategies, the terms are very important. None of these terms exist without one another.

Let's look at these terms from the perspective of a business.

What is Digitization?

The process of digitization, also known as digital enablement, consists of changing analog systems into digital ones.

In Business, this process usually takes the form of initiatives such as modernizing legacy systems or moving systems online. A simple digital process is digitization, which is simply transferring non-digital data into a digital format that can be used by a computing system in a variety of different ways and for a variety of purposes. Therefore, no original document is lost during this entire process. Indeed, the original item is sometimes destroyed to free up space, but regardless, it remains in digitized form.

Digitization reduces costs and lays the foundation for business cases that leverage data to create value


  • The Finance or Account department scans all invoices files into PDF digital file formats.

  • Converting all Employee document to digital document.

What is Digitalization?

Digitalizing in the context of business usually involves leveraging the new technology and innovation brought about by the digital space to improve business operations, business processes, and more. Digitalization provides opportunities for businesses to set up new systems and achieve any or all business goals they may have in mind.

Businesses can become digital with the help of digitalization and increase their growth potential. For instance, a digitalization initiative could facilitate the uploading of these files to a cloud to accelerate collaboration and reporting processes and generate actionable insights to mitigate risks and encourage efficiency on future projects.

A concept such as digitalization is generally seen as a means to achieving digital transformation and securing new revenue streams.Digitization is necessary for digitalization to take place


  • Moving PDFs and word documents into a shared cloud

  • Making personal resources with relevant data available to the business

  • Creating online, downloadable video databases

What is Digital Transformation?

In addition to enhancing the quality of products, services, and people, digitization is an important step toward digital transformation. The shift reshapes how businesses are conducted and value is created within an organization.

Technology is the enabler of digital transformation, more than just enabling existing businesses to utilize digital technology; it gives a business the ability to quickly adapt when needed through the use of technology and information.

The goal of digital transformation is to solve problems with the best available technology. As we've discussed, this applies to many topics such as "agile", "design thinking", "brainstorming" and other new approaches to problem-solving, since these are important elements in enabling a differentiated perspective.

The common definition