Difference Between Digitalization And Digitization? - All You Need To Know

Digitalization and digitization are branching off the same origin - the digital approach. For example, when you have the idea to create a business plan, both come as an essential part of the process. The two words sound very similar, yet their functions are entirely different. Digitization is when you perform a digital conversion. In contrast, digitization is about data encoding.

On the other hand, digitalization is when you convert the business process using digital technologies. It is crucial to note that in the traditional approach, business is not digital at all. We are now used to using digital gadgets and tools and almost forgot their analogue alternatives, but this is due to how technology changed the paradigm of all industries and our lives.
When you adopt digitalization, you start using digital technologies for business operations instead of papers and whiteboards.

What Is Digitalization?

In simple words, digitalization is a process where digitization is the piece of data and information. The two sound almost the same - yet are entirely different things. You can easily understand when you are going through the definition of digitalization and digitization.
Digitalization is a technical process. For example, when you start using emails and chats for information exchanges, this is digitalization. In the traditional business process, the pen and the papers are the primary mediums of communication.
Maybe the whole process is not entirely functioning on digitalization. But when you start using digital tools for communications and operations, this is called digitalization.
For example, when you start using a digital business card, this is the concept of digitalization.

What Is Digitization?

Digitization is the process where you convert the information into bits and bytes. So digitization is turning analogue information into digital format. And this way, the digital format will take minimal memory, and you can store the data into any digital device like cell phones or PC.
You can analyse or manipulate the data based on your requirements. Digitization is an excellent way of conversion.
For example, you hear about the Facebook katana folder. You can recover the deleted pictures and chats from the Facebook katana folder. And how is the katana folder keeping your data and images in there? This process holds the record digitally.

Digitalization Vs. Digitization

Digitalization of the business process is not only keeping track of your present data. With this simple process, you can preserve the integrity of your old data records and still maintain your business process without any interruptions.
Digitization is the convention of analogue data digitally. Even the old document scanning is part of this digitalization.

Let’s review some of the main differences between digitalization and digitization when presented in a head-to-head comparison:

No. Digitalization Digitization
1 When you are incorporating the digital concept into your business process, this entire process is called digitalization. Digitization is the process where you are converting analogue information into a digital way.
2 Digitalization in your business process is increasing your business accuracy level. And digitalization is the process by which you can make yourself more well-equipped for decision-making. Digitization is making your information storage procedure easy and robust, and you can quickly backup your data.
3 ERP conversion software Conferencing software, tools, robotics controller systems and the Computer servers are the tool of digitalization. The scanner, digital camera, online forms storage, and robust data retrieval systems are the tools of digitization.
4 Digitalization is the solution for fast information storage and circulation. And it is going to increase your visibility and the organization’s productivity. Digitization is the solution to storing the previous data records. You can keep the data records in a parameter way.
5 Digitalization is the process of communication. Digitization is the conversion of information.

These five are the significant differences between the working process of digitization and digitalization.
Now that we established some relevant differences between the two terms, let’s see their advantages.

Benefits Of Digitization

You all know how the social media mascot Snapchat is becoming a top-rated social media platform for social media marketing. But unless you are not going to save your data as a platform’s viewer, you cannot reach the next level of marketing, find the genuine lead and convey the sales pitch to your customers.

Here are a few advantages of adopting digitization:

  • Since every data record is in digital format, it is digitized so that you can keep all of them on any device such as a cell phone or PC.
  • Digitization has multiple layers of functions, like data retrieving and maintaining your business’s existing data. However, everywhere digitization is the only process for accomplishing the operation.
  • When you turn your analogue data into digital, very minimum memory spaces will require storing the converted data.

Benefits Of Digitalization

When you are turning your business communications into digital ways, everything, especially the business communications and the operations, is tuned to be very simple. So, for example, with ChromeContinues, you can easily keep track of your business communications and keep your data safe.

Here are a few benefits of adopting digitalization into your business:

  • Digitalization is making your business operations easy and affordable.
  • Digitalization is constantly increasing your business visibility and delivering accurate data handling.
  • Digitalization is the process of professional data handling and data capture. Both of these will be accurate and straightforward when you are initiating the digitalization into the system.
  • The machine incorporates an AI system to minimize human error chances.

To Sum It Up:

Digitization is about converting your analogue or non-digital data into ones and zeroes and stored on some form of modern data storage hardware. In contrast, digitalization is about preparing your business to use digital assets and technologies.
Since both terms sound similar, people often confuse the two. After all, some of the differences are so subtle that they are indeed easy not to get. However, it is the difference between the two that defines your strategy as a business owner.

Since new digital-based techs emerge every day, entrepreneurs must consider them as an alternative option to whatever else they trust at the moment. The diffusion of such technologies into every possible industry today is inevitable. However, choosing any particular tech-based solution must come after a careful measure of all digitalization’s main advantages and disadvantages.

Are you planning to turn your traditional communication medium into a digitalization approach? We want to hear from you!


Alisha Jones

Alisha Jones is an online entrepreneur by profession and a passionate blogger by heart. She is on a mission to help digital businesses grow online. She shares her journey, insights, and experiences at Online Health Media & Follow The Fashion. If you are an entrepreneur, digital marketing professional, or simply an info-holic, then this blog is for you.