DIGITALIZATION AND DIGITAL TRANSFORMATION

Although there is a clear conceptual distinction in English between digitization, digitalization, automation and digital transformation, digitization and digital transformation are often used as synonyms in German-speaking countries. It is important for both managers and employees to know the differences to be able to implement the strategies in the company and to design daily processes efficiently. 

Digitalization and digital transformation are not different names for the same concept, but two independent concepts.

- Digitization is the conversion of real values into digital values, or the transformation of information from physical, analog form into digital form (represented by the binary numbers 0 and 1). The electronic data is stored on a computer system, processed as well as forwarded. Digitalization is the application of information technology to business processes that simplifies information processing and contributes to increased work efficiency for employees. Business goals include improving internal and external business processes, achieving greater efficiency in various areas, or providing a better customer experience.

- On the other hand, the process of continuous change throughout society and the economy is called digital transformation. This involves improving and optimizing established systems such as technologies, applications, processes, business models and organizational forms. In other words, digital transformation is the implementation of a series of technological and human changes to restructure the way we work, creating new opportunities and value for business. Digitalization requires information technology personnel to build an Internet-based storage system for businesses and skilled personnel to use information technology to input information, systems, and management. Digital transformation, on the other hand, requires the participation of all members in the company, not just management, who are involved in the process. Moreover, the transformation process is the interface between employee awareness and the company's overall digitalization strategy,

WHY DIGITAL?

Although there are many conceptual differences, both above processes are geared toward common goals within the company.

- Improving work efficiency: Synchronous digital transformation within company and between companies helps to shorten work processes and make them more efficient. In addition, the characteristic features of digitalization, such as data-based forecasting, are an optimal function for executives in future strategy development.

- Customer satisfaction: Creating a positive customer experience is a key element of digital transformation in the enterprise. Today, customers not only buy products, but also pay close attention to the accompanying services. Digital transformation helps to make these services faster and more efficient.

- Improving employee skills: Internally, the transformation processes offer all employees the opportunity to improve their digital skills and digital mindset, to work more flexibly and to be able to adapt more quickly to future changes in the working environment.

According to a survey in 2019 by Schäffer-Poeschel Verlag, more than 90% of executives surveyed confirmed that digitalization is an important topic for the future. However, less than 50% of them had a general understanding of digital management. Only 28% of executives are satisfied with the speed and efficiency of the digitization initiatives launched.  What are the solutions for companies to avoid being outdated in this AIOT era?

DIGACON AS A COMPANION

As a management consultancy with integrated software development, Digacon supports many - both large corporations and SMEs – in digital transformation. What sets us apart from the competition is the perfect combination of experienced IT professionals as well as a young and enthusiastic consulting team and based on that our end-to-end approach. Therefore, we are not only attuned to the latest digitization trends, but also offer technology solutions to our customers, develop strategies and roadmaps, and accompany them through the diverse transformation processes. Furthermore, sustainable transformation is the top criterion that Digacon strives for. This is not only about practical solutions, but also about building long-term strategies and creating new corporate values.