The next industrial revolution is going to be on Digital
Let us understand the difference between Digitization, Digitalization, and Digital Transformation and we can relate with our organization.
Those terminologies are sometimes are used interchangeably, but there is a clear difference in each of the terminology.
Digitization :
Digitization means any effort towards converting analog information into a digital format so that computers can store, process, and transmit to anybody when it is required.
This is just converting physical format to digital format
For example,
scanning of daily logbook information to digital format and sharing
scanning of invoice to digital format and sharing
taking photographs of a daily plan to digital and sharing
Digitalization :
Digitalization means adopting digital technologies for increasing personal and business benefits.
This effort is for more than storing, processing, and transmitting the data..
For example,
when you collect your machine utilization, performance, quality data through OEE embedded software or SCADA system, then it is digitization.
The benefits could be the elimination of paperwork, dependence on manpower to collect and record the data manually(then transferring the same data to excel), and improving the accuracy of the data collection process.
Similarly, other examples could be using barcode and scanning technology, reducing the manual effort of entry in invoice preparation and inventory recordings etc.
also, the example of employee entry and exit data, through digital scanning and software system. It brings the benefit of reducing administrative efforts of maintaining the records manually and using it for payment processing.
Digital Transformation:
Digital transformation is more than digitalization effort in the sense that this effort is a completely new way of doing process or business transaction and it is driven companywide at all levels and thereby getting higher benefits like new business opportunities, drastic reduction in the cost, or increase in employee, customer experience level. Adoption of digital technologies will be on a larger scale and the effort of change and benefits would be on a higher scale.
Sometimes, this digital transformation disrupts the current business model and new opportunities emerge. For example, the transformation of the stock market from floor auctioning to digital is an example of digital transformation.
In my opinion, the small, emerging organization has to go a long way in the digital transformation step as most of us are in either digitization or in digitalization drive only.
Just think about where your organizational efforts are in digital!
