Digitalization in a way is a concept to be understood and not to be defined. The term is often misused or misunderstood and adapted to the context in which it is to be applied for, and hence we see as many definitions as their our sources.
Understanding Digital Transformation Vs Disruption Vs Destruction Vs Digitalization Vs Digitization
Perhaps a more meaningful topic to define and understand is Digital Transformation (DT), as it conceptualize the digitalization in more practical manner i.e focusing on how the phenomenon has transformed us as individual, societies, industries and businesses, and eventually affecting the human kind as in more holistic way.
Digitalization/DT is more of a business-oriented term where it mainly refers to use of technology to create new business models. However, the organizations usually call the DT even for internal business process improvement initiatives for example use of Bigdata/analytics.
In simpler words, it basically, means the rapid changes that the technological advancements (so called digital technologies) has brought to us/businesses and enabled it to innovate and create value.
Technology itself doesn’t cause the transformation, but the way it is applied.
The concept itself is not new, the industries has been getting transformed in phases specially since 70s/80s when first they started applying it in business processes and information systems. What is different now (or in last 10 years) is the pace in which it is happening. However not all industries are transformed at the same rate.
Why is it talked much in recent years? What happened?
- Connected society, proliferation of internet
- Faster speed of data connections
- Technologies more faster, cheaper and accessible (Moore’s law in term of computing power or 5G as example in next years)
- Power shift to people/consumers (knowledge and information easily accessible)
- Cheaper technologies are challenging the traditional business models
How it started happening?
- Technology as enabler to drive transformation and helping to innovate (for example one retailer piloting for drone delivery of goods or express delivery of groceries). The basic business is still the same like getting the good in the hands of consumers, but now because of technology it is possible to have different ways or even disrupt the marker by radical changes.
- The society as such is more and more innovative, perhaps its because that information is so easily available, which ones upon a time was restricted to certain individuals or groups. I think it’s like this that the more it happens, the more it becomes the norm and people in general expect.