Understanding Digitization, Digitalization, and Transformation

View profile for Sameh Aljabri 🔹 PMP 🔹 CCMP 🔹 ITIL 4 🔹 Lean Six Sigma

PMO | Portfolio Management | Demand & Delivery | Change

Digitization ≠ Digitalization ≠ Digital Transformation Digitization — makes analog information digital. Examples: * Scanning paper invoices into searchable PDFs. * Converting OCR business cards into contacts. * Move personnel HR files to a Data Management System. Digitalization — using digital technology to improve workflows. Examples: * Automation of invoicing that reads the invoice and forwards it for approval. * HR onboarding with electronic signature, automatic provision, and checklists instead of email threads. * Sales pipeline in CRM with automatic lead assignment and reminders instead of spreadsheets. * Customer support with ticketing and a knowledge base that deflects basic queries. Digital Transformation — changing the way the organisation creates and delivers value. Examples: * Switching from one-time product sales to subscriptions (SaaS / “as-a-service”). * Introduction of an e-commerce channel for direct sales to consumers with self-service returns. * Build a data product (reports/insights) that becomes a new revenue stream. If it ends with a digital copy, it’s digitization. If it changes the workflow, it’s digitalization. If it changes the way you compete and earn money, it’s digital transformation. What to measure? Lead time, error rate, cost per transaction (digitalisation). Digital revenue in %, activation/retention, time-to-market, NPS/CSAT (transformation).

To view or add a comment, sign in

Explore content categories