Digitize & Digitalize: Definitions & Importance
The success factors for businesses of all industries in this new digital era.

What is Digitize & Digitalize?

The 1st Most Important Step That Comes Before Digital Transformation... 

To those who are on a quest in achieving a successful digital transformation, the terms “Digitize” and “Digitalize” will be no stranger to them.

In order for businesses to start the digital transformation initiative, digitization and digitalization will be necessary.

Even though terms as such have already been existing for quite some time now, most business owners still couldn’t wrap their heads around what digitization and digitalization actually mean.

If you are one of them, WORRY NOT!

With this blog article, we at Pivotino will try our best to explain to you what is “Digitize” and “Digitalize” along with their importance in helping Small and Medium Enterprises (SMEs) digitally transform!


What is Digitization?

Digitization is the process of converting something into a digital form.

Yes, it is as simple as that.

In the business world, digitization represents the efforts of converting analog data and information into a digital format.


What is Digitalization?

Digitalization is the application and implementation of digital technologies.

Digitalization often emphasizes the improvements of business processes, models, operations, and functions through digital technologies with the goal of achieving certain business goals.

Businesses that utilize digital technologies to enhance their business models with the goal of gaining new revenue streams and opportunities, can be said to be going through digitalization.

Digitalization is also the shifting of traditional businesses into digital businesses.


Importance of Digitize & Digitalize for SMEs

Digitization and digitalization are both equally crucial for businesses to stay competitive in this new digital norm.

Through digitization, analog information can be converted into digital information. This helps to ensure the communication of information within the company is efficient and accurate across departments.

Moreover, digitization also allows data and information to be easily accessed at any given time. This is because digitized data and information are often recorded accurately in real-time.

After going through digitization, businesses can then proceed with the digitalization of business models and operations. Data and information digitization allows for the digitalization of business processes.

Digitalization is the effort that helps boost work efficiency through fully utilizing digitized data and information. One of the best examples of digitalization is the automation of tedious manual tasks such as data entry, reporting, and inventory tracking, with digital technologies.

When digitization and digitalization are both achieved, then only SMEs can be said to be on the right path towards their digital transformation journey.

Digital transformation plays a major role in any business nowadays not only because it changes our traditional mindset and culture towards businesses, but it also forces us to adapt to the new norm, be comfortable with failures, and challenge the status quo consistently.

In short, before anything, SMEs should first emphasize on digitizing and digitalizing their businesses.

As Steve Backley said,

“The first step is the most important. It is the most crucial and the most effective as it will initiate the direction you have chosen.”

Fully understanding that Pivotino came up with a solution called “Digitize & Digitalize”, just to assist SME owners like you achieve greatness by starting the first step right!

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