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The difference between Digitization and Digital Transformation

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Digitization and Digital Transformation are very often used synonymously, although they are not. In the company, you have to be very clear if you want to digitize or, if on the contrary, the project is digital transformation. That is why it is very important to know the differences between digitization and digital transformation. Let’s start!

It may interest you: Executive MBA in Digital Transformation

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Digital transformation. A methodology to face the challenge





The best example is the one made by the administration in general, they have digitized the same disaster they have in their offices and made it accessible from a website. Other large investments have been made by traditional banking , digitizing the same old processes and making them even more complex for customers and for the bank. 

Digitizing is good, and Digital Transformation is good for the company, but they are not the same. 

Digitization vs Digital Transformation

Few things frustrate more than doing a lot and not knowing why, and if you allow me the license, after doing it nobody is satisfied because everyone had the idea that they would end up somewhere else or with a very different solution. 

  • The digitization can be part of the way but it is not the same as Digital Transformation, nor a requirement
  • In Digital Transformation the objective is to adapt to the user and the client in the digital age
  • The first thing is to transform, and in fact the most important thing. Reinventing is also possible.

In 2014, a boat called “Santa Ana” set a course with six degrees of error with respect to the route it had to follow and collided with an entire island, not with an iceberg, or a rock, an entire island. If the journey had been longer, it would have ended on a different continent. 

Of course the difference matters . In the case of a company or institution, the difference can leave you out of the game, or with very significant losses. The company must be very clear about it, if it wants to digitize or if it wants to transform .

What is digitization?

Digitization is turning the traditional into digital . We do it constantly, for example, when a document is scanned, it goes from paper to a digital document. An invoice that was printed on paper was folded to put it in an envelope and take it to the post office; now in a digital format like “pdf” and sent by email is a good example of digitization.

On the other side, the receiver has to do the same thing he did with paper invoices so that it can enter the management system. The processes are the same or with very few differences , but digital. The processes are faster, and perhaps more secure, but the same. 

There is nothing wrong with digitization, on the contrary, it is a very important step that companies must take . It makes them more efficient, allows them to save costs and provide better customer service. So go ahead, wait no more; But don’t call it digital transformation.

What is Digital Transformation?

Digital Transformation implies at least two things, first to transform , and second to do it with the aim of adapting to the current world (to the digital world) . You ask for a credit card at your bank and they ask you for a copy of the last three payrolls, the same that are entered into the account each month; then why ask me, because they have digitized, but not transformed ..

The digital age has very different rules from those that governed the world prior to 2008. Humans no longer want to be messengers, you can’t ask me to go to a Town Hall window to ask for a document to take it to another window of the same institution, it is not valid that the document is digital, it does not matter. Don’t ask me to go to the nearest office to have a document scanned, if I could have already done and sent it. 

The buyer, consumer and user want to be at the center of everything. You want products to be designed exclusive and with your preferences. The digital era brought a very important component of freedom, if you don’t do it, someone else does it, if I have to ask China for it, I will do it, because I can.

The name “Digital Transformation” is very appropriate. The first thing is to transform, and in fact the most important thing. Reinventing is also possible. The relationship with your bank would have to change, why not talking to the bank on WhatsApp is what we do with everyone. Why doesn’t the Tax Agency come to where I am, why do I have to get a digital certificate by visiting an office in person by appointment, where else does this happen, I am the one who pays the Agency and not the other way around, why it doesn’t adapt instead of continuing to adapt. 

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All digital? Maybe some day. But not scenes like the one I experienced watching a poor citizen trying to carry out a Social Security procedure, being there in a “present body” and having an official send her to do the procedure “online”, and as the woman does not have a computer or he knows how to use it, so they propose one to him at the reception which by the way did not go well.

All digital for what? If the objective is not human beings then it is not worth it. If the objective is not to speed up processes and adapt them to the needs of clients and users, then it is better not to waste time, on paper it works much better, or at least we already control it.

Digitizing can help in Digital Transformation , but it is not the same, nor does it have to be the only way. The important thing is to transform and adapt to the user of the digital age. 

If you want to face this challenge in a professional way, consult our Executive MBA in Digital Transformation with which you will know how to manage a digitized company and you will be able to implement exponential technologies such as Big Data , 3D, AI, IoT, Mobile & amp ; Internet, Robotics 4.0, Blockchain to manage a Data Driven and Automated company.

Share with your community so that we can always advance in the user’s line. Thank you!

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