Learn the difference between these crucial terms and determine where your business should begin its digital journey
Businesses are turning to digital initiatives in order to meet the demands of the modern customer. According to Gartner, 89% of companies are making digital transformation a core strategy. Yet, there are many ways to achieve this goal. To get off on the right foot, you must first compare digitization vs digitalization. Understanding the critical differences between these concepts will help your organization start its digital journey properly.
Digitalization isn’t just a buzzword — it’s the present for industries around the world. Read our comprehensive guide to make sure your business is on track.
Digitization vs digitalization vs digital transformation: What’s the difference?
All these terms sound very similar. Yet, they represent different approaches to converting physical files and processes into digital ones. The following is a breakdown of each of these terms. It compares digitalization vs digitization and digitalization vs digital transformation. That way, you can understand where your business currently stands and which process it needs to pursue next.
What is digitization?
Digitization is the actual process of converting physical assets into digital, computer-readable formats.
Conversion requires hardware that transforms the physical object into a computer-readable language. Digitization hardware includes:
- Document scanners to convert paper files, such as documents, photos, and books.
- DVD players and film scanners to convert video discs and film reels.
- CD, cassette, and record players to convert audio data.
Specialized software converts these files into human-readable formats. The type of software needed depends on the file format being used. You may encounter many of the following applications within an average workday:
- Word processing software to read .doc files.
- Image viewing software to read .jpg, .gif, .png, .bmp, or .tiff files.
- Movie playing software to view .mov, .mp4, or .mkv files.
- Audio playing software to listen to .wav or .mp3 files.
Did You Know?:The fi-8170 can scan up to 70 pages per minute and 10,000 pages per day. Click here to learn more.
What is digitalization?
Digitalization is the process of transforming analog workflows into digital ones. Digitization can form a part of digitalization. However, digitalization examines all aspects of the work being done to find ways to make them digital.
As an example, take a basic document editing process. Before digitalization, businesses might pass a physical document between departments for markup. After digitalization, employees would leave comments and edits on a digital version in a program like Google Docs — no paper required.
Offices within the United States use over 12 trillion sheets of paper annually. Businesses must store, organize, and secure these documents. Additionally, companies must train all employees on document handling procedures.
When businesses digitize these processes, they can reduce their costly reliance on paper. Companies can also automate intake and storage processes. This automation can help to reduce the risk of data loss or theft. Digital information is also more accessible to employees and customers, enhancing productivity.
What is digital transformation?
Digital transformation is the operation of changing an entire business to become technology-forward. According to McKinsey, digital transformation is the “rewiring of an organization.” The ultimate goal is to use technology to become more efficient while reducing costs.
It’s about more than scanning documents. Digital transformation requires setting company policies to rely on digital tools. For example, email and video conferencing software enable more efficient communication.
Digital transformation is a long-term pursuit of a fully-digital workplace. This means fostering a constant dialogue between key stakeholders to ensure buy-in. It also means examining processes for continuous improvement.
Digitalization or digitization: Where to start?
Once you understand these core concepts, you can determine the best place to start your digital transformation.
Digitization is the foundation of any digitalization initiative. Without the proper equipment, any approach to digitalizing processes will continue to rely on analog media. This will prevent you from achieving a complete digital transformation.
That’s why examining what physical assets your organization interacts with is a key starting point. You must then determine which ones would benefit most from digitalization.
For example, some businesses handle a lot of incoming mail. Companies must then sort and deliver this mail. Instead, businesses can digitize this mail as it arrives. Then, they can upload mail to a centralized network for immediate access.
Other businesses may have a large volume of customer records. Digitizing these records can improve the efficiency and accuracy of gathering and storing this data.
Once you know which assets need to be digitized, you can get the needed equipment. Then, you can develop the internal processes necessary to make digitization as smooth and error-free as possible.
Did You Know?:PCMagazine described the fi-8170 as “...a first-class product that…should last on the market for a long time.” Click here to read the full review and learn why it earned an “excellent” 4 out of 5 rating.
Our recommendation: fi-8170
Those in the market for a document scanner to start the digitization process have no shortage of options. We take great pride in having spent the last 50+ years researching, designing, and developing some of the most advanced and powerful electronics in the world, including our professional grade fi Series scanners.
Built to purpose for the most demanding document handling jobs, fi and SP scanners are capable of processing tens of thousands of pages per day at the highest levels of accuracy. Their intuitive integration capabilities with all existing work suites minimize time-to-value for businesses looking to invest in tools that will pay dividends for years to come.
The fi-8170 is a perfect fit for any business that digitizes large volumes of physical paperwork. It features fast, double-sided scanning speeds — up to 70 pages per minute. And with an expected daily volume of 10,000 sheets, the fi-8170 can move as quickly — or as long — as your business needs. Click here to learn more or shop the rest of our production scanner line.
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