Digital Transformation

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This lesson is from Digital Transformation Handbook by John Palfreyman

Terms

Source: Digital Transformation Handbook by John Palfreyman
Source: https://www.amanciobouza.com/amp/api-and-digitization-digitalization-and-digital-transformation

Digitization

  • Digitization refers to creating a digital representation of physical objects.

  • Digitization itself has no business value. However, it lays the foundation for business cases that leverage the data.

Digitalization

  • Digitalization refers to enabling, improving or transforming business process by leveraging digital technologies (e.g., APIs) and digitized data.
  • The business value of digitalization consists typically of efficiency regarding:
    • cost reduction,
    • speed, and
    • simpler business processes.

Digital transformation

  • Digital transformation is the profound transformation of business activities, competencies, and business models to fully leverage the opportunities of digital technologies.
  • The business value of digital transformation lies in transforming business activities, competencies, and business models to adapt to changes.

Definitions: in context of API

  • Digitization: Creating a digital representation of physical objects. It’s doesn’t provide business value by itself. However, it enables to create business value.

  • Digitalization: Enabling, improving or transforming business processes. The business value of digitalization is efficiency.

  • Digital transformation: Transforming business activities, competencies, and business models. The business value of digital transformation is creating new business models and adapt to market needs.

Employee timesheets: from Paper-based capture to a digital workflow

  • If the timesheets were filled in on a paper form which is photographed on a smartphone and emailed to head office, this is an example of digitisation.
  • If there is an online way (web or app-based) of capturing and submitting time worked, this is digitalisation .
  • If this online capture is fully integrated with forecasting, billing and project management systems, this is an example of digital transformation.
  • Strategic value increases as we move up the stack from digitization to digital transformation.