Digitization, with digitalization and digital transformation, is the confusing trio that people frequently use wrong. Digitalization is misinterpreted and misapplied to digitization. IT outsourcing businesses are extremely important in the process which contributes to digital transformation. They understand how to digitize, digitalize paving the path to a complete digital transformation.
Normally, they come with expertise in creating enterprise software that’s vital to digital transformation. Because of this, you must accelerate the implementation.
To get a more precise view of these concepts, we’ll explain what digitization is and why is it different than digitalization and digital transformation.
What’s digitization and why is it significant?
Digitization is a procedure in which analog data is converted into an electronic format, making practically a digital picture or a digital form of the report, object, picture, audio, or signal.
These days, the digitized data takes the form of binary numbers, easing computer processing or other procedures. More specifically, digitizing is the conversion of analog source material to a numerical form.
Digitization is quite important for information processing, storage, transmission because it enables information to intermingle and to be carried out using the same performance. Digitization enables data to be distributed and obtained, to be propagated without reduction, and to migrate into new formats when required. Digitization is the most favorable method of storing information for many societies around the world.
The process of digitization
As we said before, digitization is used to convert various kinds of things into data, into one binary code. The procedure resembles the compromise between the participant device and the shooting device so the result is that the representation of the source as closely as you can. The advantage of this procedure is the speed and precision where this information is transmitted with no degradation in comparison with analog information.
Digitization occurs in two steps:
Discretization – The reading of an analog signal A, and, at regular intervals (frequency), sampling the value of this signal at the stage. Each such reading is known as a sample and could be considered to have infinite precision at this point.
Quantization - Samples are curved to a predetermined set of numbers (like integers), a procedure called quantization.
Both phases are different, but they can occur at the same time.
What’s the difference between digitization and digitalization?
The main argument in differentiating these concepts is that digitalization can’t happen without digitization. While digitization describes converting analog into digital, digitalization is using the digitized data and change the work force and how businesses and customers interact, creating new digital earnings streams, with the assistance of digital technologies. Digitization refers to optimizing the internal processes leading to cost reduction, while digitalization is a strategy that once implemented, remodels the heart of the whole business strategy and development.
Why is important to understand the meaning of these terms?
Business leaders, which are often responsible for implementing such plans, misunderstand the conditions which makes them miss out on the chances to evolve or acquiring an edge over the competition, the way they react to the customer or worker requirements and expectations, all in all, getting an agile company.
To conclude, the importance of understanding and using these terms correctly is vital for any company and its development.