Subject areaProcess and organisation
Also known asdigitalisation
Digitalization is the use of digital technologies to run processes, services and exchanges that used to rely on paper, the phone or physical contact: online orders, e-invoicing, searchable archives, public administration services available on the web.
Digitalization makes what the company already does faster and measurable, and it differs from digital transformation, which changes the way value is created. Digitalization out of step with real needs produces costly tools that nobody uses; therefore it starts from an analysis of how people work and of customers' problems. When a strategy guides it, it becomes a business asset, because the data it generates feed decisions.
An example
A spare parts manufacturer moves dealer orders from fax to an online portal. That is digitalization: the same process, faster. It becomes digital transformation when the company uses order data to forecast demand and change its assortment.
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Enrico Giubertoni. Licensed under CC BY-NC 4.0: you may quote, translate and adapt this entry with the author’s name and a link, stating any changes. For commercial use, write to info@enricogiubertoni.com
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