What Is Digitization?

The process of digitization involves converting various types of data or information into binary codes. As the demand for automation and the integration of machines into processes increases, digitization enables the creation of streamlined operating procedures that facilitate collaboration between humans and machines.

An easy way to understand digitization is to consider the transition from analog cassette tapes to digital compact discs. Cassettes store data on magnetized tape, while CDs contain data that has been etched onto the disc using lasers in the form of pits (0) and flats (1). Digital data is easier to index, reference, replicate, access, and manage, which is why we can easily skip to specific tracks on a CD without the need to manually fast forward or rewind the tape on a cassette.

In the manufacturing industry, converting a unit of data, such as a measurement taken manually or mechanically, into an electronic format is considered digitization.

Difference Between Digitization And Digitalization

Digitization and digitalization are frequently used interchangeably, but they do not refer to the same thing. Digitization involves converting analog or non-digital data into its binary form.

Digitalization is the process of using digitized data to transform and improve business operations, as well as identify new monetization opportunities. Essentially, digitization prepares non-digital data for the process of digitalization.

For example, a log register with pages of data related to equipment history can only be effectively analyzed when it has been digitized.

Advantages Of Digitization

Digitization is the initial step towards digital transformation. On its own, digitization has numerous benefits both within and outside the IT industry. A cabinet filing system with folders may be useful in a workspace, but it has limitations in other areas.

Here are a few advantages of digitization:

• Ease Of Access
  Digitized data is not restricted by physical location, as cloud servers allow for access to files from any distance. This can reduce the need to physically transport paper documents, which can be easily lost or damaged, such as by a coffee spill.
• Improved Time Efficiency
  Spending time searching through cabinet drawers for a missing file can be a time-consuming process. In contrast, tracking and accessing digitized data can be done quickly and efficiently. Digital information can also be easily and quickly transported, even in large volumes, compared to physical data, which can be cumbersome to move.
• Enhanced Security
  Digitized data is generally more secure than physical documents stored in a filing cabinet, which can be accessed with a simple lock and key. While it is not foolproof, digital security measures such as biometrics, passwords, and cybersecurity programs are less vulnerable to being hacked with makeshift tools like paperclips or hairpins. Advanced technologies like blockchain, combined with advanced encryption methods like RSA or TripleDES, can provide exceptional security.
• Environmentally Sustainable
  Printing physical documents can be expensive and requires the maintenance of printers and the allocation of space. Digitized data not only reduces these extra costs but also eliminates the need for paper. For example, a smartphone with 128GB of memory can store the same amount of data that would require 125 tons of paper.
• Improved Sustainability and Backup
  Paper documents are prone to degradation and can become damaged over time with frequent use. It is advisable to have digital copies of business-related documents that need to be regularly referenced. While a coffee-stained paper document may add character to an antique filing cabinet, it does not contribute value to a business’s operations. It is also worth noting that paper can develop mold and attract unwanted pests like cockroaches.

Challenges Of Digitization

Organizations often have multiple layers and complex interdependencies. The process of digitization at an organizational level may encounter obstacles along the way.

There are various factors that can create challenges in the digitization process.

Here are a few examples:

• Budgetary Limitations
  Implementing digitization on an organizational level typically requires a significant investment in infrastructure, as well as ongoing costs for equipment and software maintenance and updates. These expenses can vary greatly depending on the size and type of business.
• Workforce Resistance to Change
  Employees may not always be open to change. The implementation of digitization, digitalization, and digital transformation is likely to significantly alter the work environment and the way business is conducted. Employees who are used to certain routines may find the new operating procedures to be less convenient. The requirement to learn new skills and refine existing ones can also cause resistance to change.
• Workforce Upskilling
  Employees are an essential part of any organization. While hiring new staff may not always be a budget-friendly option, upskilling existing employees can assist in the transition to new technologies. Training sessions, seminars, and workshops related to the organization’s operations can help employees adapt to changing environments. However, for training to be successful and yield measurable benefits, it requires buy-in from all stakeholders, investments in time and money, and ongoing improvement.

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