Digitization vs Digitalization: How to Compete in Business, 5 Ways

By: | January 13, 2022 | Tags: , , , , |
digitization vs digitalization

Digitization vs digitalization: Do you know the difference?

By reading this post, you discover why digitization is important, the advantages of digitizing your business, and the difference between digitization vs digitalization.

The world that we are living in now has changed a lot over the course of the last decade. We might have thought that we are already at full peak when it comes to digitization.

But that’s not the height of it. The level of digitalization that we have experienced over the past ten years has doubled, if not tripled, as wireless connection with the help of the internet has crept into every corner of our modern-day living.

A good area where this technological leap should be focused on is in the realm of business. For entrepreneurs, technological advancement can either make or break their business as this is where the trend is going.

digitization vs digitalization


Here, we are going to dive deep into this matter of massive digitization, and how businesses can use this to further reach success.

Let’s explore the difference between digitization vs digitalization and why digitization is important for your business.

Digitization vs Digitalization: What’s the Difference?

What’s the difference between digitization and digitalization?

When you digitize your business, you adapt data and online processes. In contrast, when you digitalize, you change. You adopt digital trends.

By the time you’re done reading this post, you will know how to use digital technology to embrace both digitization and digitalization.

Why is digitization important?

By going online

  • You increase efficiency.
  • Your business conducts routine tasks faster.
  • Data collection becomes a breeze with digital tools.
  • Digital records are easy to replace.
  • You ride the wave of trends which makes your business look cutting edge.
  • Beating your competitors that don’t use digital tools becomes easier.

Digitization vs Digitalization: The Overlap

Digitalization and digitization are closely related since you can’t have one without the other. You need to first use digital tools before you can become a digital brand.

Digitization Source

Digitalization Source

65% of the world's GDP is predicted to be digitized by 2022. 

Digitally transformed organizations are expected to contribute more than half of the GDP by 2023.

Digitization vs Digitalization: How to Have Both

Go online

The first thing businesses should do to keep with the technological advancements the world is facing now is to go online.

Almost everyone is now online. From children to adults, and even the elderly, all these demographics are now hooked to their gadgets that are connected to the internet.

Going online means that businessmen are also able to tap into a greater market that is connected via the internet. There are many things you can do here, but the first step should be to solidify your status in the online world.

One good way to do that is by creating a website. Having a website allows you to reach a wider market, especially that almost everyone today has easy access to the internet, either via their mobile phones or through their computers or tablets.

Enter the world of social media

Social media is a strong part of today’s society because people treat it as an avenue for their emotions as well as a diary where they put regular updates about their lives in the form of posts containing photos and videos.

It would be smart for a business to have its own social media pages, specifically on Facebook and Instagram, as these are the top two social networking platforms around the globe today that have millions of users globally.

You can easily market and promote your offerings on social media, as well as interact directly with the community in the form of post reactions and comments.

You can even dive into video marketing using YouTube, a video-sharing platform where you can again promote your products in a very holistic way.

Let’s explore more when it comes to digitization vs digitalization.


Rebranding is a perfect example of how a business can keep up with the modern trend. Note that many people today are already very brand conscious and that branding plays a huge part in their decision-making process.

Rebrand your business and go for more modern styles which dive more into minimalism and simplicity. You can start with your logo.

And instead of having too many lines or shadows, why not just have a single line with a lowkey colorway. You can also have a simple logo with a short slogan that can have a huge impact on the readers in a relatable way. It’s in doing these rebranding strategies that you can keep your business up-to-date with the latest trends.

Adapt to new technologies

Adapting to new technologies such as artificial intelligence and automation can do a lot of good to your business because these things allow you to become more productive with your tasks.

It can also help the overall operations of retail businesses such as factories that produce switchgear components or even retailers that source products overseas from valve supplier Malaysia companies.

Aside from that, machine automation such as what a can packaging machine can do, can make the workplace safer and more secure, thereby reducing the chances of accidents while increasing revenues.

Invest in communications

Investing in communications can benefit your business a lot because this allows your operations to become more seamless and accurate.

digitization vs digitalization


This reduces the chances of errors when it comes to logistics or project planning. There are many ways to improve communications. One of which is by getting an exclusive internet connection that runs on Fiber technology for ultra-fast network speeds.

You can also have your own GPS satellite trackers or use GPS fleet tracking software to track your logistics or products and services. Communication is vital to any business, and today’s digitalization and massive technological advancements made communication much better and easier for everyone.

Conclusion: Digitization vs Digitalization

In closing, you can’t have digitalization without digitization. When it comes to digitization vs digitalization, you can’t embrace the digital world (digitalization) until you first start using the components of that world (digitization), the digital tools.

Adapting to the new digitized world of business is vital if you want it to survive and thrive in the long run.


Create a more holistic and productive business operation by diving into the online world and improving communications, operations, and overall workplace safety and security.

Follow the tips about adapting to the newest technological advancements so you can ensure regular revenue streams from your business.

Authors: Janice Wald and a Contributing Author

This post was made possible by the support of our readers.

  1. Chitiz Agrawal

    Hey , that’s true digitization vs digitalization now a days all organization on it without that no reality all virtualization digital platform as you mention in your blog i am fully agree that’s the reason GDP has on 60%

    thanks for blog its very informative

    • Janice Wald

      Thanks for the compliment and the comments. Question: Is virtual reality “no reality?”

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