Welcome to 2022 and a brand new year of insights from the Digital Enterprise Society podcast.  On today’s episode Thom Singer and Craig Brown dive into the differences between digital and digitalization.  Simply put, digital refers to using computers to do everything while digitalization is all about different ways of bringing value.  But what does that mean companies should be doing about either? Given all of the facts, is it time to change our name to the Digitalization Enterprise Society? You won’t want to miss the insights on this episode, and the answer just might surprise you. 

 

On today’s podcast, you will learn:

 

Defining digital and digitalization 

• Digital refers to computers- the ones and zeros- and it means no paper or prototypes. 
• Digitalization refers to the transformation of a business to taking advantage of computers and producing a new way of doing something. 
• Digitalization results in increased profitability and performance and the ability to create new businesses.
• The transition of music from records to audio files is a great example of digital and digitalization. 
• GPS is digital, traffic patterns represent digitalization. 

 

Key elements of the journey from digital to digitalization

• Market research is an example of digitalization as it studies consumer patterns. 
• Digitalization is understanding data and then bringing that data into a context to make decisions. 
• Processes that once took months can now happen in a matter of hours. 

 

Data < Information < Knowledge < Wisdom

• Your customized YouTube recommendations reflect the journey from information to knowledge, but what about wisdom? 
• Wisdom is gained by applying the knowledge gained from digitalization. 
• Wisdom is a human thing- even AI has a problem discerning the value and meaning of patterns. 

 

Overcoming digitalization roadblocks and pitfalls

• Costs have drastically reduced, creating uncertainty about how to take advantage of all that computers have to offer. 
• Ask more questions and apply more simulations. 
• The pandemic has proven that the supply chain is not resilient to disruptions. 
• Consider that we may not be measuring the right things- it’s important to consider what matters most. 
• There is plenty of money available to continue testing, and companies can’t afford not to continue testing. 
• Changing processes as digital tools become available is the key step to transforming to digitalization. 

 

Continue the conversation with us within the Digital Enterprise Society Community at www.DigitalEnterpriseSociety.org.

 

Digital Download: Virtual Round-Table Series