• Sture Edvardsen

Digitalisation – Understanding the terminology

Updated: Sep 7

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.



#Digitization #Digitalisation #DigitalTransformation


Summary

  • Do you find it confusing, perhaps even hard, to understand the different terminology used when it comes to digitalisation?

  • Understanding what the terms …

  • Digitization …

  • Digitalisation …

  • 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!


Quotes



Transcript

Do you find it confusing, perhaps even hard, to understand the different terminology used when it comes to digitalisation?


Understanding what the terms …

  • Digitization

  • Digitalisation

and …

  • Digital transformation

… really mean?


Because it’s easy to be confused - especially since different sources explains them differently.


If, so, you’re not alone …


I found them confusing too, so I decided to figure this out …


What I found is that 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.


In essence, they build upon each other where …


Digitization is a prerequisite for Digitalisation …


And


Digitalization 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!


That change, however, is necessary in order to leverage digital technologies, so that they truly empower and enable employees.


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