Digitalization and digital transformation: Are they the same?

What does digitalization mean? It is the entry of digital and data technologies within companies, such as Big Data, Artificial Intelligence (AI), Internet of Things (IoT), Robotics and cloud technology (cloud computing), in order to process and optimize business processes. And now comes another question: is there a real impact in incorporating these digitalization technologies in the economy of the companies and the society headed towards digital transformation?

There are already many companies that have been developing digitalization plans throughout the years to avoid losing competitiveness within the markets and be able to offer digital services to a new generation of clients.

Digitalization and Digital Transformation 

The premise is clear, digitalization and digital transformation are different concepts. As we have said before, digitalization is not a process of transformation, but rather the change and incorporation of technological tools that replace the traditional tools in order to achieve the same improved objectives.

However, digital transformation is a process that requires more effort and work from the team and it is fundamental to be established equally between the private company and the public institutions. This way it will be more efficient and effective, optimizing costs and watching income grow.

What is digitalization? 

In practice, the concept of “digitalization” would be, for instance, the implementation of a CRM for project organization in our company. What benefits would the implementation of a CRM bring?

• Project planning.
• Project traceability.
• Worktime management. 
• Interaction with the rest of the departments and members of the team. 

Introducing technological software into the business environment is ultimately a challenge for organizations, it involves a change and transformation of its production and business processes in order to obtain a clear positive result.

What is digital transformation? 

If digitalization is clearly something less “aggressive” for the company, digital transformation implies greater sacrifice on part of the entire organization. This could be considered as the entry of new opportunities that arise from the application of technologies.

These changes are not just the consequence of the irruption of the technology, they have been preceded by changes that must be assumed by the people who make up our organization and are forced to undergo a change as well as companies when the entry of technology is at stake. 

Advantages

Digital transformation should be seen as the opportunity companies have in order to take on new practices and ways that lead to an objective based on new techniques and skills.

Its main advantages are: 

• New experiences for the client.
• Increase of the operative efficiency.
• Fast response to market changes.
• Development of competitive advantage for the company. 
• Incitation to impulse a new culture of innovation for the whole organization. 
• Interest in a greater knowledge in data analysis (Big Data). 

Digital transformation is not… 

Developing a social network strategy is not a synonym of a digitalization plan for the company. Digital transformation is a lot more about having an online business or using the corporate image through a website.  

Digital transformation is not:

• Implementing an ERP.
• Planning a digital marketing plan.
• An AdWords campaign.
• An e-commerce.

Now is the time, wait no longer and start the correct path towards the digitalization and digital transformation of your company. Contact us and we will help and advise you, no strings attached.