Digitalisation – Understanding the terminology
There’s a lot of focus on digital transformation, and digitization, digitalization, and digital transformation are words that keep popping up. But what do they really mean, and how do they relate to each other? Watch this short video to find out.
Do you find it confusing, perhaps even hard, to understand the different terminology used when it comes to digitalisation?
Understanding what the terms …
Digital transformation … really mean?
It’s easy to be confused especially since different sources explains them differently.
These terms all have a very specific meaning, and they’re all connected to each other.
Digitization, as defined by Gartner, Is the process of changing from analog to digital form
Digitalisation, as defined by Gartner, Is the use of digital technologies to change a business model and provide new revenue and value-producing opportunities
Digital transformation, as defined by Wikipedia, Is the adoption of digital technology by a company to improve business processes, value for customers and innovation
They also build upon each other where, Digitization is a prerequisite for Digitalisation, and Digitalisation is the foundation for Digital transformation
However, Digital Transformation is more about people than it is about digital technology!
The reason is that for Digital Transformation to happen the organization, and the way it functions (its, processes, procedures, systems, etc.), must change – which in many cases is hard, because it directly challenges the company culture!
I have a question for you …
Accenture research predicts that, the difference in annual revenue between digital leaders and the bottom 25% of companies, will be 46% by 2023.
So, the question to you is …
Where will your company be on that scale?
How much annual revenue will your company potentially be losing by 2023?
Which leads to another question …
How digitally up to speed are your business right now – really?
Because, that’s what’s going to decide where you’ll be by 2023
That, and what you’re planning to do about it – unless, of course, your business already is a digital leader!
Becoming digitally up to speed comes down to two things – Digitalisation, and Digital marketing
Digitalisation, because that’s the process you need to go through to find out how to use
digital technologies to change your business model, and provide new revenue and value-producing opportunities for your business
Meaning, how your company needs to change …
Especially the organisation and the way it works – it’s processes and procedures, the company culture, etc., in order to be able to fully utilize new digital technologies
Which is a process that takes time.
Digital marketing, because you need to start improving your business’ digital competitiveness right away.
Meaning, improving your existing digital assets – your funnels, landing pages, squeeze pages, content, social media, SEO, ads, etc.,
Or, if you don’t have any digital assets, start creating them, testing them, and making them work.
Now, becoming a digital leader isn’t done overnight,
But, becoming one should absolutely be your goal because, by working to become a digital leader a bottom 25% company can avoid losing out on 46% of annual revenue by 2023.
And even if it takes time, if it seems hard, if the progress is slow, always remember that
A 42% loss of annual revenue is still better than a 46% loss,
A 38% loss of annual revenue is even better than a 42% loss,
And so on …
You get the drift