When it comes to converting numbers, many people often just pay attention to the “digital” and accidentally forget the “transformation” part. That is also the reason leading to the confusion between the concepts of “digitalization” and “digital transformation”.
Diffrence between digitalization and digital transformation
Difference between digitizing and converting numbers
| Digitization | Digital Transformation |
| – Is the process of modernization, conversion of conventional systems to digital systems (such as the conversion from digital documents to software files on computers, digital television transfer from analog to technical broadcasting …). – Digitization makes it easier to find and share information, but the way businesses use their new digital records largely mimics the same old methods. – Digitization is part of the digital conversion process | – A full integration of digital technologies into all areas of a business, applying technologies to change the way we operate, business models and bring new values to customers. goods. – Digital conversion based on new technology applications (Big Data), Internet of Things (IoT), cloud computing (Cloud) …. To change the operating method, leadership, implementation process, culture of the business. |
From the above comparison we can see that digitization is only part of the “ecosystem” of digital transformation. It can help businesses work more effectively but not entirely because the nature of digital transformation is to grow the business.
The confusion between these two concepts can cause businesses to give wrong directions and decisions. There’s even an “illusion” part about your power on the digital transformation race.
Technology – a mistake many businesses make when confusing two concepts
Many people think that investing a lot in technology means converting digital. More investment means that the business is at the forefront of digital transformation. It is a wrong thought of many businesses. This thinking is only making businesses “lose money” but not effective. There is even a little “illusion” about his position on the racetrack.
Although technology helps a lot for people in the process of digital conversion, it only stops at one factor. If only focus on technology, businesses just stop at digitizing. Digital transformation only really happens when there is a combination of business, people and technology:
– Business, computing, culture and talent At the same time, hardware and hardware, hardware and shapes
– People: Establishing text and culture in culture, while you are getting acquainted, applying and caring
– Technology: Powerful and intelligent technology: AI, Machine Learning, IoT, …
Digital transformation – the vital choice of business
The lessons of the failure of Yahoo, Kodak, … or the success stories of technology startups such as facebook, google, netflix, … are the best evidence. showing that digital transformation does not simply stop at the momentary trend, it has become a vital battle for businesses.
So why is digital conversion so important? Simply because it brings great benefits to businesses?
Digital transformation brings many benefits such as reducing operating costs, reaching more customers in a longer time, leading decision makers more quickly and accurately thanks to the timely reporting system.
Thereby, operational efficiency and competitiveness of organizations and businesses are improved. Specifically:
– Clearing the gap between departments in the enterprise.
– Enhancing transparency and efficiency in the corporate governance system
– Optimizing employee productivity: According to a 2017 study from Microsoft in the Asia-Pacific region, digital transformation will increase labor productivity in 2020 by 21%; 85% of jobs in the area will be changed over the next three years.
– Improving competitiveness for businesses: Digital management and operation solutions increase efficiency from 30-40% to 100%.
