As the hype around digital transformation grows, two similar sounding terms- digitisation and digitalisation join the bandwagon. We often tend to use them interchangeably, but it is important to realize the following key differences between them:
1) Digitisation– is about STORING OF INFORMATION IN DIGITAL FORM. To digitise means to convert data into a form that can be stored, processed, and transmitted digitally. Keep in mind that it is the information you are digitizing, not the process.
2) Digitalisation– is about DOING THE SAME THINGS DIFFERENTLY. To digitalise means to automate some of your existing manual and business processes. It’s about doing what you have always done but using technology to make it more efficient. Main focus here is to improve the operation efficiency tremendously while business model does not change.
3) Digital Transformation– is about DOING DIFFERENT THINGS. It goes much deeper, creating new strategies and processes which lead to a better way of providing value to end customers. As an example, consider gathering data to derive actionable insights. Businesses can use such a transformation to expand into new markets and offer new products.
This content was originally published for my TechTuesday’s initiative on LinkedIn.
