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What is digital transformation, digitalization and digitization?
What is digitization?
Digitization refers to creating a digital representation of physical objects. For example, we scan a paper document and save it as a digital document (for example, PDF). In other words, digitization is the transformation of something non-digital into a digital representation or artifact. Then computer systems can use it in various ways.
The API can play a role in integrating the two computer systems to reduce media gaps.
For example, a user enters personal information into a mobile application. The mobile application sends this information to the API, which stores the information in a server system or database. The data then becomes available for other computer systems and usage options.
What is the value of digitization for business?
Digitization in itself has no value in business. But it lays the foundation for business cases that use the data. In other words, it is a means of creating value for the business that needs the data.
What is digitalization?
Digitization refers to the provision, improvement or transformation of business processes through the use of digital technologies (e.g. API) and digitized data.
What is digital transformation?
Digital transformation is a deep transformation of business activities, competencies and business models to take full advantage of the opportunities offered by digital technologies.
For example, a company has personal information about many customers. Other companies have to confirm personal information to do business. Based on the client information, the company provides the product for identity verification to other companies that want to verify information about a person.
What is the value of digital transformation for business?
Please note that identity verification has not been the responsibility of the company so far. However, the company has identified an additional business model based on customer information that could complement its current business and market. This is a digital transformation.
This is an example of how a company fully uses digital technologies to transform its business activities, competencies and business models.