We tend to use the words "digitization" and "digitalization" as synonyms. However, these two words describe very different processes. On the one hand, "digitization" can be described as converting non-digital information into digital data. On the other hand, "digitalization" is a strategical process, which does not necessarily involve technology implementation. It implies a significant change that most probably will affect the entire business model.
In the path to become a digital business, a company needs much more than just some digital tools. Therefore, the organization should change the way things are being planned and developed. Companies are often encouraged to start the path to digitalization, to transform into a digital business. Still, to do that, the organization needs more in-depth changes than just the mere implementation of a bunch of digital tools.
Let me explain it with an example: You may have an online shop to sell your products, which is a digital tool, and you may still use an excel sheet for your inventory and your logistic processes. Although you already have some digital tools in place, you will need a digital transformation of your logistic processes to take full advantage of these tools. Otherwise, you will not get accurate information about the goods you have in stock, even when you have a digital system to manage your inventory.
A company needs to make a conscious decision to reach a higher level in their digital maturity. Considering their strengths and competitive advantages, it could mean they will acquire more agility and acceleration to drive the bumps and curves of the VUCA markets. In this analysis, the company needs to know where they are standing regarding their digital maturity level. The decision you need to take, depending on this starting point, will vary.
In the path to become a digital business, a company needs much more than just some digital tools
The kind of partner you need depending on the case should be different. To implement digital tools that will help you digitize your company, you need partners that understand your situation. They should define your needs (together with you) and offer you a suitable solution, scalable and sustainable in the long run. Considering your business goals, strengths, and one-of-a-kind attributes of your organization. If your need is a structural change to reshape your business processes, your partner should help you manage these organizational changes.
It is not by chance that you reach higher levels in digital maturity. And it is impossible to become a digital champion by buying sophisticated software tools if you are not open to transform yourself on the long way to the top.
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