Distinguishing Concepts in Digital Transformation: Information Digitization, Process Digitization, and Digital Transformation

In today's digital age, there are several commonly used concepts related to digital transformation, but not everyone understands their meanings and differences clearly. In this article, we will explain and differentiate three important concepts in digital transformation: information digitization, process digitization, and digital transformation.

1. .1. Information Digitization

Information digitization is the process of converting data from physical form to digital form, making it easier to store, process, and transmit. For example, when you scan a paper document using a scanner, you are digitizing the information from a paper format into an image or text file. Information digitization helps save storage space, protects data from damage or loss, and enhances data accessibility and sharing.

2. 2. Process Digitization

Process digitization involves applying digital technology to automate, optimize, and improve the efficiency of business, manufacturing, or management processes. For instance, when you use Customer Relationship Management (CRM) software to track, categorize, and respond to customer requests, you are digitizing the sales process of the business. Process digitization helps save time, costs, and resources, improves product and service quality, and enhances customer satisfaction.

3. 3. Digital Transformation

Digital transformation is the process of changing the structure, culture, and strategy of an organization or society to adapt to the development of digital technology and user demands. For example, when you create a platform that connects suppliers and consumers of transportation services, you are digitally transforming the logistics industry. Digital transformation helps generate new value, exploit new opportunities, and address new challenges in a competitive business environment.

4. 4. Relationships between Information Digitization, Process Digitization, and Digital Transformation

Information digitization, process digitization, and digital transformation have close relationships and complement each other in the process of digital transformation. Here is a description of the relationships between these three concepts:

The relationship between digitalizing information and digitalizing processes is one of mutual support and similarity. Digitalizing information provides electronic information sources for digitalizing processes while digitalizing processes create conditions and provide automated systems to manage, process, and interact with digital information. This ensures that digital information is effectively utilized and processes related to it are automated.

The relationship between digital transformation and digitalizing information, and digitalizing processes is one of combination and mutual support. Digital transformation utilizes digitalizing information and digitalizing processes as tools to achieve profound changes and innovation within an organization. It creates favorable conditions to apply new digital technologies and leverage digital data to generate new value and competitiveness in the digital age environment.

In summary, digitalizing information and digitalizing processes are two fundamental concepts in digital transformation and have a mutually supportive relationship. Digital transformation is a more comprehensive concept, combining both digitalizing information and digitalizing processes to drive profound changes and innovation in the way organizations operate.

5. 5. Conclusion

Therefore, we can see that the three concepts of digitalizing information, digitalizing processes, and digital transformation are related but not identical. Digitalizing information is the foundation for digitalizing processes, while digitalizing processes are part of digital transformation. To successfully implement a digital transformation, an organization or society needs to apply all three concepts strategically and comprehensively.