Which is more beneficial digitization vs digitalization, let’s find out.

Which is more beneficial digitization vs digitalization, let’s find out.

Why do you need to know the difference between digitization and digitalization? That is the main question that pops up in our mind when we search about digitization and digitalization.

If you want to know, which is more beneficial then the answer will be that they both are very beneficial in today’s life.

To have a deep analysis, you first have to know what is digitization and what digitalization is.

What is digitization and Digitalization?

Digitization:- It is a process, in which you convert information or data into a digital format. This process of converting info into digital format is called Digitization. The data is stored in bits format also known as Bytes. As you can understand this is binary data.

Digitalization:- Digitalization is about making a process and making an efficient workflow. You can understand this as you are improving a manual work system to a digital work system. For example, In India, you can pay your bills without having any paper money (Banknote).

That is the main difference between Digitization and Digitalization.

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How do People convert data into Digitized format?

There are different methods to convert data into Digitized format because you can have your data in different types of form. For example documents, recordings, videos and etc.

Methods to convert data:-

• Make Scanning:- You can use a scanner to make images of the documents (physical form). Then you can convert it into Digitized format by using a bitmap.
• Use OCR (Optical character recognition):- OCR analyzes the light and dark of places of an image text and then it identifies letters. Then it makes it into digitized format.
• Recording:- in this, you have to convert a recording or image to a recording medium like a disk or magnetic tape.

History of Digitization and Digitalization

Digitization gained its popularity in ending of the 20th century with people wanting to change their information and data into digitization format.

But Digitalization is a process of making daily life simple by using and making digital infrastructure and making digital systems.

Benefits of digitization vs digitalization

Digitization makes and improves the efficiency of information and data. It is used to preserve the information.

Digitalization is to improve the experience of life and increase the efficiency of workflow. The main goal of Digitalization is to make good productivity.

Digitization and digitalization are the paths that lead you to digital transformation.

Why we need Digital Transformation

The transformation from physical form to digital form can be seen as ambiguous and fast. But it is necessary in today’s life. People need this transformation to make new changes and bring more productivity. 

When we see this from a business perspective we see that all the companies which does not adapt to change have started to fall down from their previous positions. Because this Digital Transformation change makes their other competitor more efficient and agile. 

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Best Example of Digital Transformation

If we look at the past decade we find out that many companies which adapted to this transformation have achieved great success. For example Netflix, we all know what is Netflix. This subscription-based streaming service has made its presence known to the world in such a short amount of time that looks impossible at first glance.

Digital transformation of Netflix:-

As you know Netflix first started as a DVD-by-mail service, they sell DVDs by mail. But they understand the importance of Digital Transformation. Netflix transformed itself by investing in its online business. It invests in infrastructure for an online platform and makes algorithms that understand user behavior. It also produces its original content which gets popular and after some time it starts to dominate the whole cable-based subscription industry.

Digital transformation of Siemens:-

There is another example of Digital transformation, Siemens.

Siemens was a German multinational company, this company also went through digital transformation. They create a digital form of their original product. It was a virtual product that revealed the minor and small mistakes of the product. This led to an increase in quality and efficiency, which also reduced the cost.

Now can see the effect of Digital Transformation.

Conclusion:-

Now you can understand what digitization and digitalization are. Digitization is converting information into digital format and Digitalization is the process that makes your work more efficient. Digital Transformation is crucial for survival in today's world because of harsh competition. But there is nothing to worry about because we can change ourselves however we want with some hard work and a lot of dedication.