What is digitization, digitization and digital transformation?

 

 

What is digitization, digitization and digital transformation?

Accuracy in communication is one of the most critical communication skills. It sounds so obvious and simple, but this essential aspect of communication is often overlooked. The impact can be massive, for better or for worse. This applies to both verbal and written communications. Accurate communication puts you and your listeners on the same page. Your message is sent clearly and precisely. It is received clearly and precisely. The possibility of misunderstandings, misinterpretations and even bad decisions is radically reduced. Consistent communications also facilitate future conversations, because definitions are concrete, discussions about misunderstandings and ambiguities are avoided, and trust is built.

 

Digitization, digitization and digital transformation explained

Many people have started combining terminology out of ignorance or for their own benefit, which creates confusion, because suddenly we are talking about different things but calling them the same way. Some have started labeling digitization a digital transformation to mollify management, get a project approved, or make a sale. In this discussion, I hope to clarify the terminology and try to provide a baseline for the discussions.

Let's start with the term digitization. Digitization refers to the creation of a digital representation of physical objects or attributes. For example, we scan a paper document and save it as a digital document (eg PDF). In other words, digitization is about turning something non-digital into a digital representation or artifact. Computerized systems can use it for various use cases. An example of manufacturing would be when a measurement is converted from a manual or mechanical reading to an electronic one.

 

Digitization is essential. This is the connection between the physical world and the software. This is what we have been doing since the 1960s. It is an enabler for all processes that deliver business value due to the need for consumable data.

 

Digitization refers to enabling or improving processes by taking advantage of digital technologies and digitized data. Therefore, digitization presupposes digitization. Examples of this could be as simple as PLC logic or PID control in a microprocessor-based system, sequenced logic for a batch process, automatic shutdown logic, etc. It could also be something more complex, like a bug in a transmitter that generates a job. Order in the ERP maintenance system for a maintenance technician.

 

Digitization increases productivity and efficiency while reducing costs. Digitization improves an existing business process or processes, but does not change or transform them. That is, it takes a process from a human-driven event or sequence of events to software-driven.

 

Digital transformation is truly a business transformation enabled by digitization. The nickname "digital" is a misnomer because the essence of digital transformation is changing business processes enabled or forced by digitization technologies.

 

An example of this is IT / OT convergence, where the connection and overlap of IT skills within the OT domain has shaped the need for more uniform domination due to cyber security concerns, data flow requirements, and skills. . Another instance of digital transformation is a shift from local control of corporeal processes to remote monitoring and control of those same processes. A more ambitious example would be integrating your customers' sales volumes by feeding your company's raw material suppliers, thereby integrating the supply chain for greater efficiency and responsiveness.

 

So what is Industry 4.0? You can believe of Industry 4.0 as European because of the mixture of Digital Transformation and Digitization, which leads to a confusion of its own.

 

I'd like to take a moment to share with you that there is a user community focused on topics similar to this one. Take this opportunity to consult and join this community called the Digital Transformation Council. This is a collaborative group of professional end users who come jointly to exchange ideas and be taught how digital transformation affects their companies, how to affect change within their companies, learn about failures and successes, etc. It's free to join and be open to anyone in your environment..

 

Summary:

 

Accurateness in communication is one of the most critical communication skills.

 

Digitization refers to the creation of a digital representation of physical objects or attributes. Digitization refers to enabling or improving processes by taking advantage of digital technologies and digitized data. Digital transformation is truly a business transformation enabled by digitization. And Industry 4.0 is European due to the combination of Digital Transformation and Digitization.

 

Helps in communication to understand the frame of reference of your audience. If their definitions are different, you will need to translate your ideas for them.

 

Hopefully this brief explanation was helpful to you. Feel free to visit the ARC Advisory Group website for a complete list of the products and services we provide to help clients like you understand automation trends and solidify winning strategies going forward.