Digitalization vs digital transformation

Digital transformation Digitization is the process of converting analog data into digital format , but also the use of digital technologies to change a business model and thereby provide new revenue and value opportunities.

In English there are two different

words to differentiate these two concepts: Digitization telegram number database and Digitalization . However, in Spanish, things get a little more complicated, since the same word is used for everything. But it doesn’t end there; we also tend to confuse business digitalization with digital transformation .

That said, we need to differentiate between process digitalization and business digitalization . Let’s shed some light on this mess to clarify concepts and understand the importance of digitalization itself.

What is process digitalization?

At first glance, it may seem like this is about creating small business tips – create a digital marketing strategy a website for a business or having a social media account . However, practically all processes in a company can be digitalized , or in other words, converting individual analog flows of information into digital bits.

The digitalisation of processes must

be based on —redundancy intended— digital fresh list technologies and on managing data digitally. The objective? Optimising results thanks to the information obtained. In a way, this would be the first step towards digital transformation —although not the only one.

A fact to keep in mind before continuing: it is estimated that, thanks to the digitalization of processes, the costs of a company or organization could be reduced by up to 90% .

digitalization of processes

What is business digitalization?

The fact that a company digitises its processes does not necessarily lead to the digitalisation of the business. The change from analogue to digital must cover many more points . Firstly, the key to the digitalisation of companies is the restructuring around digital communication and digital media infrastructures.

The digital tools that are implemented have to improve all processes within a company ; from how the product or service is generated, to the relationship with customers. Even internal departments such as Human Resources have to be involved in this development.

Since the pandemic

digitalization of businesses is no longer an option , but rather a necessity. In addition, digitalization opens the door to new lines of business and opportunities, while helping to optimize resources.

digital transformation in companies

So, where does digital transformation come in ? Well, it’s the next step. Once a company has started its digitalisation process, the next step is to carry out a thorough transformation of its business model . Of course, this also includes a paradigm shift in the business culture and in the mindset of those who lead it.

In short, digital transformation uses technology to make each and every one of a company’s processes dynamic and, above all, to adapt to a world that is constantly changing .

That said, the importance of digitalization lies here, in that without it digital transformation would not be possible .

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