You often hear the words “Digitisation” and “Digitalisation” used in the same context – but is this correct? What do they actually mean? Although it might only be a subtle difference in meaning between the two words – it needs to be understood!
The process of converting information from a physical (paper) format into a digital one.
A working example: Jason scans a signed contract, and saves the scan as a PDF to his desktop or C drive.
The process of using digitisation to improve general business processes.
A working example: Belinda also scans a signed contract, and saves the scan as a PDF, then uploads the PDF to the cloud so that she can access the contract anytime and anywhere.
So in short, digitisation is the first act that may then enable digitalisation to take place – which in turn improves business automation processes to a greater degree.
This often appears alongside the words digitisation and digitalisation – effectively this can be considered the impact caused by the process of digitalisation. So if you looked at them in logical order, a flow chart would look like this:
So, to recap:
- Digitisation is the process of converting information from a physical format to a digital one
- Digitalisation is when this process is leveraged to improve business automation/processes
- Digital transformation is the result of these processes.
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