Skip to content
Home » Blog Archive » Digital Transformation vs Digitization

Digital Transformation vs Digitization

    (Translated from Spanish -see original post)

    Digital Transformation and Digitization are terms that are commonly confused or used in the wrong context. It can have many meanings; it all depends on who is asking because the answer is based on the experience that a person or individual has experienced with technology or digital transformation.

    Among the benefits that we can mention are the reduction of costs, reduction in process times, especially manual processes, facilitating decision-making. It has to do with the way we optimize the resources at our disposal and the processes we are used to. To bring our customers or users to a better experience by raising the level of satisfaction.

    Now, what is the difference between digital transformation and digitization? In simple words, digitization is converting data, for example, physical documents, to a digital format. On the other hand, digital transformation consists of transforming processes, using technology to digital.

    Let’s think for a moment about an example of everyday life in which we have digitized a document… possibly during the purchase of a plane ticket online; the process includes downloading our passport or identity document to include it in the management at the moment of the purchase.

    Then, during the check-in process, another digitized process is repeated when the passport or identity card goes through the data reading process through the taking of a photograph or a scanning machine with the purpose of validating our identity. Today, many of us who live in condominiums or multi-family buildings have also experienced the processes of registering visits or of the residents themselves through the electronic reading of identification documents or reading of fingerprints.

    Digital transformation has a much broader scope beyond digitizing a document, as we saw in the previous example. It includes the resources and processes that made it possible for that identity document to be digitized.
    It is integral management that requires the interdisciplinary collaboration of the organization. Following the previous example, all human resources were required to change their way of thinking, orienting it towards operational efficiency by identifying ways to add value to the customer experience through the adoption of technology.

    In a real situation, this process involves brainstorming meetings with multidisciplinary teams in search of identifying possible areas to be digitally transformed. This process involves changes in the organizational culture and mentality of the collaborators throughout the organization.
    Another example that I would like to mention is the toll systems on vehicular highways. Which, through decal systems with balances, speed up vehicular passage. This represents benefits in terms of the average transit time or vehicular passage through the toll station, which eliminates the driver’s collection time.

    There are more benefits that we can obtain from digital transformation, such as real-time, fast (speed) data analysis, handling large volumes of information, the ability to manipulate data from unrelated, unstructured or inconsistent sources.

    With the use of digital initiatives, financial, investigative, or forensic analysis units can analyze large amounts of unstructured information from different sources. In pre-digitization times, these processes were handled manually, becoming long processes, vulnerable to errors and losing importance over time. With the ability to communicate quickly and quickly, transnational transactions can be identified and patterns or suspicious behavior can be identified in real-time.

    There are still unanswered questions such as, Is it possible that in the face of so many benefits there are challenges? Who is the true beneficiary of digital transformation?
    In my next Blog, I will comment on these and other topics of interest.