Making analogue processes digital is the process of digitalization. Using digital technology to change a company model and provide new prospects for income and value is how Gartner describes it in their glossary. In other words, digital technology is used to make routine jobs more productive and efficient. This might entail anything from automating formerly laborious procedures, such as generating reports using software rather than through spreadsheets or other paper-based methods. Or it can entail employing digital tools to fulfil chores that were formerly performed manually, such using a smartphone to book a table at a restaurant or purchase tickets to a movie.

Business processes may be streamlined and made more effective through digitization. Additionally, businesses can save time and money by adopting digital since digital information can be sent and stored more readily than analogue information.

What is Digitalization?

Digitalize accepts digital technology’s capacity to collect data, identify patterns, and make smarter business decisions. It also includes the process of transitioning from obsolete business paradigms to new technologies.

The term “digitalization” refers to the process of using digitised data and technology to enable, enhance, and alter corporate processes in order to change how firms do business and boost productivity.

Although these processes and interactions may not be totally digital, they do rely on digital tools more than they did in the past, such as workflow management software.

Digitalization permeates everything around us. whether it be via social media, outdoor advertising, or mobile applications. Digital data is become a necessary part of our everyday lives.

Information must be digitalized in order for digitalization to occur. Automation is one of the most efficient ways to adopt digital assets, without which organisations cannot start down the path of being digitalized.

Automation is the term used to describe the automatic execution of tasks carried out without human supervision. One of the most popular categories of automation technology is RPA, or robotic process automation.

One of the advantages of automation is the ability to automate business rules. They are critical to the smooth running of any business. They set goals, provide criteria for job performance, monitor compliance, and assist businesses in automating operations.

Worldwide, businesses are adapting their processes to be compatible with digital technologies. Numerous businesses have already invested in or implemented innovative business strategies. Consider discussion, reading, music, and online shopping. This disruption will affect every industry.

It should go without saying that organisations must continually change if they want to survive. In the modern, digital world, organisations are forced to begin the journey of digital transformation.

Businesses could operate more effectively, spend less money, and produce more if they go digital. They are facing a life-or-death choice, to put it simply.

In a nutshell, digitalization is the process of utilising technology and transforming business practises for the digital era.

What is the definition of Digitalization?

Digitalization is the use of digital technology to alter a company model and generate new income and value; it is the process of transitioning to a digital business.

It is worth noting that the rise of digitalization has coincided with the acceleration and widespread marketing of new digital technologies in the recent decade, such as cloud computing, machine learning, artificial intelligence, business intelligence, and the Internet of Things. Emerging digital technologies are critical to the Fourth Industrial Revolution’s advancement of automation.

Examples of Digitalization

Examples of digitalization include the ability to instantly open a bank account from your mobile device and purchase and sell goods on websites like eBay. You can also stream music and movies on websites like Spotify.

Digitalization increases productivity and efficiency while decreasing costs. It improves an already-existing business process or processes rather than transforming them. Consequently, a process is changed from being a human-driven event or sequence of events to being a software-driven event or sequence of events.

Digitalization will revolutionise manufacturing. But there are some disadvantages as well. Although business transformation of any kind is challenging, McKinsey estimates that more than a third of companies fail to become digital.

In the next five years, industrial businesses expect to spend, on average, 6% of their yearly sales on digitalization in our digital environment.


According to McKinsey study, banks should go digital by using AI/ML to automate up to one-third of their processes in order to save costs and do away with human mistake. JP Morgan Chase’s COIN, a data-driven automation tool, analyses complicated documents using a private cloud network and machine learning techniques.

The technology can reportedly do ordinary tasks that once required up to 360,000 hours in only a few seconds.


How to transform the automotive sector from a fuel-guzzler to a software-driven vehicle is one of the best instances of digitalization (tesla). Their manufacturing is becoming more automated and computerised.

Benefits or Advantages of digitalization

By utilising digital technology to enhance performance and procedures, digitization builds on digitalization. For instance, many businesses have put enterprise resource planning (ERP) systems in place to simplify their processes and more effectively manage their inventories, money, and human resources.

Businesses may generate organisational transformation, develop new business models, and unlock new value from data that has been pooled via digitization with the use of automation and digital technology. The advantages of digitization include these. Digital transformation, which is more of a process than an end, refers to the whole impact of digitization throughout a business.

Why is digitalization important?

As digitization spreads throughout business and society, the underlying technologies continue to advance quickly. But digitization involves more than just “additional technology.” The prospect for greater profitability and the capacity to think differently about the company’s place in its ecosystem are two reasons why digitalization is crucial for an organisation. Technology by itself is not a goal.

These firms may start developing new value chains and experiences that are interactive, collaborative, lucrative, and sustainable once digitalization is established.

With the exception of a few areas, including the energy and construction sectors, where data is still still retained in an analogue format, the majority of businesses today have digitalized their data. Regarding digitization, many businesses have used it in some capacity to enhance their performance.

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