• Mike Mullane

Digitization vs digitalization

We often use the term ‘digital transformation’ to describe the integration of digital technologies into all aspects of business. It is important, however, to make a distinction between ‘digitization’ and ‘digitalization’ to understand how we arrived at this point and to prepare us for the journey that we still have ahead of us.

Digitization, of course, means adopting digital tools to make analogue processes more efficient. When we attach a PDF to an email, we are using digital tools, although the action is not radically different from enclosing a paper document inside an envelope.

The paperless office has been digitized but not necessarily digitalized, by which we mean using digital tools to transform the way that work is carried out. Digitalization means finding new ways to engage and interact with stakeholders, as well as investing in innovation to create digital revenue streams that are based on sustainable business models.

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