Week 51, 2019
Terminology: Digitize, Digitalize, or Digitally Transform
Each week I share three ideas for how to make work better. And this week, that means getting to grips with a bit of terminology.
Why am I writing about this? The terms Digitization, Digitalization, and Digital Transformation are often used interchangeably. But they actually mean different things.
This week, I thought I’d try my hand at providing a few definitions. Because like George Bernard Shaw once wrote: “Words are important. If you cannot say what you mean, you will never mean what you say.”
Let’s dig in:
1. Digitize Information
Digitization refers to the conversion of information from analog to digital. The how or why doesn’t really matter. It’s the act of conversion that’s referred to. It could be a one-time project (e.g., digitizing everything in that old filing cabinet of yours) or systematically scanning all the world’s printed media, like Google has been doing since 2002. It’s all conversion. It’s all digitization.
2. Digitalize Work
Digitalization (note the extra syllable) refers to the use of digital technologies to improve how work gets done. This might involve the automation or optimization of existing business processes. But it might also involve the introduction of new (digital) businesses (e.g., launching an e-commerce store to complement or compete with an organization’s brick-and-mortar business).
3. Transform Organizations
Digital Transformation is the odd one out. Because contrary to what most people think, transformation isn’t about technology. It’s about people. And specifically, it’s about the skillset and mindset that people need to thrive in a digital business that is replete with digital information and digital tech. It’s also something I’ve written about before: w28 2019 — The Digital Mindset.
It can be helpful to think of digitization, digitalization, and digital transformation as necessary steps on the road to becoming a digital business. Step one is to convert. Step two is to optimize. And step three is to transform. It won’t be as clean-cut in reality of course; the steps will invariably blend together. But as far as mental models go, I reckon it’s a good one.
So. Next time someone mentions the terms above, pause to consider what they really mean. Then act accordingly.
That’s all for this week.
Until next time, stay calm.
