What’s the difference between digitalization and digitization?

What comes to mind when you think of digitalization?

Some may think of robots, other of artificial intelligence, yet others are afraid of disappearing jobs. As society becomes increasingly digital, many also worry about how the older generation will go through their day as digital payments replace cash.

The questions that come up when discussing digitalization is how everyone can retain a place in society in the coming years. What’s the capacity for education and personal growth? What’s the level of understanding and knowledge in your workplace, as we face this shift?

Ewa Hutmacher, CEO of Snabbfoting: Digitalization and changing business models need to be an integral part of every company’s survival. Digitalization is a given in order to be make the transition into the future. The ongoing corona crisis has in a very short time raised the digital maturity of Nordic companies, in a transition that few thought possible. Agility and digitalization, including adaptation of remote work and digital services have been key these last few months. A new workplace is emerging, and these learnings bode well for the future.

Digitalization consist of two parts

Let’s look at two core concepts: digitalization and digitization.

Digitization

Digitization is the transformation of information from an analog medium to a digital one. Think of old VHS tapes being transfered to digital media, so you can watch old videos on your phone or your computer. In a company, this could mean going from traditional mail or fax to scanning and sending digital documents.

Digitalization

The word digitalization refers to the process of actually using this digital information in your everyday processes. This touches on a range of subjects, from work methods to organization, leadership and business strategy.

Let us know how digitalization benefits your organization

How has digitalization created an edge for your business? What values do you see in digitalization? Drop us an email.

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