What Is Digitalization?
Digitalization is a term used to mean several things in a business context.
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It refers to:
- Businesses that implement and make use of digital technology
- The adoption of digital mindsets and work cultures
- Digital transformation, including the implementation of modern-day business models
The term digital encompasses much more than just technology, as we can see.
It also refers to business practices, ways of thinking, and modes of operating.
A business that is fully digitalized, therefore:
- Stays on the cutting edge of digital technology as much as is practical
- Maximizes the productivity and usage of the software and technology it does deploy
- Employs modern operating models that are only possible with digital technology
- Puts humans at the center of its revenue models
Naturally, different people hold slightly different views on what “digitalization” means. However, there is a general consensus that it focuses on an integrated set of concepts like these.
Due to today’s technological revolution, digital technology has spawned a set of closely related terms, including:
- Digitization – Often used interchangeably with digitalization
- Digital Transformation – The process of transitioning to a business that adopt digital technologies and ways of operating
- Digital Business – A business that has transformed and become fully digitized
- Digital Adoption – The adoption, deployment, and full usage of a software application or platform
These are some of the most common terms related to digital, but they are not the only ones.
While some professionals feel that these terms have a bit of a “buzz” quality to them, it is also true that the world is undergoing a radical digital transformation.
And, despite slight variations in meanings, these terms have become ubiquitous in certain professional circles.
It is precisely because the world is undergoing a large-scale digital transformation that these terms are so commonly used.
Understanding what these terms mean – and why they are important in a business context – will become critical as the world becomes more digital in the coming years and decades.« Back to Glossary Index