Digitization v. Digitalization: Why You Need to Know the Difference

September 19th 2023 11:00:00 AM

The terms digitization and digitalization are often used interchangeably. In fact, they refer to separate concepts. You and your team need to understand the difference between digitization and digitalization when developing a company automation strategy.

Digitization is the process that converts analog data into digital form, turning it into information. You may already be familiar with it being used in these contexts:

  • Digitizing books
  • Digitizing information
  • Digitizing music
  • Digitizing video games

It transforms information from a physical version to a digital one. A computer recognizes it and can use the representation to automate workflows or operations.

According to Gartner, “Digitization is the process of changing from analog to digital form without any different-in-kind changes to the process itself.”

Digitalization refers to improving processes in an organization to create new opportunities. Digitalization and digitation work in tandem to turn organizations into digital enterprises (an organization that relies on digital tools and technology). When you think of automation and the paperless office, digitization is the process used to take something from a physical format and turn it into a digital one.

In other words, digitalization makes information easier to access, share, and maintain. Companies can increase business operations’ efficiency and automate daily activities with digitalization.

5 Advantages of Digitizing your Business

The main advantage to digitizing your business is that automating processes has become essential for success. Here are some more advantages of digitizing your business:

  1. Access Information More Rapidly

One of the crucial advantages of digitization is being able to access company information quickly and efficiently. Team members can access the documents they need from the office or while working remotely.

  1. Better Customer Service

Giving team members the ability to access customer files and relevant documents quickly allows them to find the answers they need without undue delay. Customer retention rates increase as a result.

  1. Lower Operational Costs

Printing, filing, and finding space for storing paper records is an expensive proposition for a business. If a natural disaster (fire, flood, etc.) occurs, paper records may become damaged or destroyed.

Storing your records digitally will lower document maintenance costs.

Digital storage is less expensive than placing files in cabinets. It also provides a more cost-effective method for backing up your information.

  1. Productivity is Boosted

Increased employee productivity is one of the main advantages digitization can bring to a company to help it operate more quickly. Employees can simply search for the digitized, organized documents and information they need. Team members may be able to search for the documents they need using keywords.

  1. More Affordable Marketing

Traditional business marketing can be a costly, time-consuming proposition. Switching to digital marketing makes it more affordable and faster to accomplish.

Online marketing tools make it easier for marketers to reach their goals. Online advertising makes it convenient for the marketing team to track the metrics to determine the success of each campaign. The team can then place more effort into the elements that are working and stop using strategies that are less successful.

Scanco has Automation Solutions for Your Business

Whether you are running a small, medium-sized, or an enterprise level company and are interested in automating your organization, Scanco’s product experts will work with you to determine the best solutions for your business.

We offer solutions for manufacturers, warehouses, distributors, mobile sales, and more. Contact us today to arrange a time to speak to one of our solutions experts.


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