Digitization and digital transformation: Distinguishing similarities and differences

Digitization and digital transformation are two inevitable trends in the development of organizations and businesses, bringing many great benefits in terms of efficiency, productivity, quality, and customer experience. The article below from 1C Vietnam will distinguish similarities and differences, helping businesses have a more general overview of these two important trends.

1. What is digitization?

Digitization is the process of converting information from physical form to digital form, represented by binary number sequences 0 and 1. The information is uploaded to the computer system and processed by software. , supporting easy storage and searching.

Some examples of digitization include the following:

• Scan handwritten paper documents, convert to digital format (PDF or Excel) and store.
• Measurement results in the manufacturing industry are converted from manual measurements to electronic measurements.

In businesses, digitization is often applied in the form of digitizing stored data. By applying this technology, businesses will save storage costs, search time, share information, increase security and avoid document damage. Digitalization has a positive impact on businesses, helping to save costs, improve operational efficiency and increase competitiveness.

2. What is digital transformation?

Digital transformation is the process of applying digital technology to comprehensively change a business's operations, from the way it operates, the business model to the customer experience.

A business converting from cash payments to non-cash payments is a typical example of digital transformation. To do this, businesses need to digitize information and payment processes, then use technologies such as big data and AI to analyze, connect and deploy convenient payment methods for customers. row.

Currently, digital transformation is being applied in many different fields, including marketing, manufacturing industry, banking, services,...

3. Distinguish between digitalization and digital transformation

Digital transformation and digitization are two concepts commonly used in the context of information technology. These two concepts have the following basic similarities and differences:

3.1. The same point

Digitization and digital transformation have similarities including:

• Both use digital technology: Digitization is the process of converting data and processes from physical to digital form. Digital transformation is the process of applying digital technology to all aspects of life, including business, education, healthcare,...
• Both aim to improve efficiency and performance: Digitalization helps businesses store and process data more quickly and accurately. Digital transformation helps businesses improve productivity, reduce costs and improve customer experience.
• Both bring great benefits: Digitalization helps businesses save time and costs, while improving operational efficiency. Digital transformation helps businesses create new products and services, expand markets and increase competitiveness.

3.2. Differences

Although digitization and digital transformation have some similarities, these two concepts still have differences. Below is a detailed comparison table of the differences between these two trends:

4. Digital Office Solution 1C:Document Management supports businesses in digitalization and digital transformation effectively

Currently, digital transformation plays an important role in the process of business restructuring, in order to flexibly adapt to changes in the current business environment. Applying information technology and digitalization is essential to optimize new business processes, enhance customer interaction, and enhance information management and improve employee performance. staff.

Digital Office Solution 1C:Document Management has the ability to support businesses in converting management models and operating procedures to digitize documents to electronic libraries. The software possesses a powerful advanced search feature based on metadata, has the ability to quickly access related documents, creating a seamless information retrieval flow, helping users continue their work smoothly. , without interruption due to spending too much time searching for documents manually.

In addition, the solution helps businesses automate workflows, manage work assignments, and manage projects, opening up a "virtual" workspace that encourages collaboration between all departments and individuals within the organization. company. For large corporations, applying the 1C:Document Management Digital Office solution can meet the requirements of complex workflows and multi-condition links between departments, helping to minimize Risks can occur when business processes are automatically standardized in a clear sequence.

In particular, the solution will bring a combination of "centralized data storage and management" and "workflow management" - the two most important elements in business management. This helps the company have a complete, operational and smooth coordination process. Currently, there is no solution on the market that can meet both of these conditions well.

In short, digitalization and digital transformation are two concepts that are closely related to each other. Digitalization is the first step in the digital transformation process, the foundation for successful digital transformation. To update more useful information about business operations, don't forget to follow other useful articles on 1C Vietnam's website.