What Is Digitalization? Why Should Businesses Do It In The Digital Era?

Digitalization is currently being mentioned in the current 4.0 era, which is seen as the beginning of the digital transformation process to make it easier for businesses to store data, documents and images.

1. What is digitalization?

Generally, we always store documents, contracts, images on paper, which leads to waste of space to preserve and storage. Storing data with paper can effortlessly causes loss, damage and takes up space. Therefore, digitalization is converting media data such as records, papers, archives, hardcopy documents, images into digital data formats, which can be electronic management and use (computers can understand and store).

More specifically, a digitalization solution helps businesses and organizations to convert hardcopy information into data that can be stored, retrieved and searched simply with just "click". As a result, businesses and organizations can easily search, control and manage information, documents and archives quickly and conveniently.

2. What are the differences between Digitization vs Digitalization?

Figure 1. The differences between Digitization vs Digitalization

a) Digitization vs Digitalization

Digitization is the process of converting information from a physical format to a digital version also known as a paperless office. Digitization refers to the act of converting anything non-digital into a digital representation that a computer system can use to automate operations or workflows. The term digitization has been used in many contexts such as book digitization, music digitization, information digitization, video game digitization, etc.

While digitalization is the use of digital technology to transform a company model to improve revenue prospects and added value. It's the process of moving into a digital business.

Digitalization combines the process of adapting old business models with new technology and capturing the potential of digital technology to collect data, identify patterns, and make smarter business decisions.

b) Digitalization vs Digital Transformation

Digitalization is part of digital transformation. Digital transformation is the transformation of people for the use of technology for working purposes. Digital transformation requires businesses to apply much more widely in digital technology and change the work culture. 

3. What information can be digitized?

Figure 2. Document management software

Digitalization technology is developing strongly with the combination of advanced technology features OMR, ICR and OMR, specialized digitization equipment and software. There is no limit to the selection of documents that should be digitized, and documents should be considered digitized in the business as follows:

• Official correspondence 
• Financial documents
• Construction drawings/ designs
• Factory map
• Survey map
• Teaching materials
• Agreement contract
• Media records
• Personnel profile
• Invoices and receipts

4. What are the reasons of digitalization in the businesses?

Digitalization affects B2C and B2B companies. Companies must adapt to digitalization and the customer is the core value of sales because the future of the business model will be decided by the end customer. 

• Increased customer demand
• Higher procurement capacity
• Growing competition
• The market is constantly changing
• New technology

5. What are the benefits of digitalization?

Searching for "paperless office", "digital transformation", “digitalization” and "document digitization" on the Google Search, will bring up many article results about document digitization. The number of results returned by Google Search shows the importance of digitalization for the sustainable development of the business. Here are the benefits:

• Improve work efficiency through accessing documents anytime, anywhere, suitable for remote work. 
• Cost savings by cutting down on printed documents, manual preservation when digitalization.
• The storage of document information is ensured safely, avoiding damage and loss for businesses.
• Improve employee productivity and concentration by optimizing processes to help look up information easily and quickly.
• Contribute to environmental protection by reducing the amount of paper waste.
• Reduce document storage space, thereby, reducing operating costs, enterprise document management.
• Easily retrieve and search for past data.
• Ensure document security. Categorize documents and grant permission to departments/employees to access document types.
• Ensure documents are stored permanently, not lost, stolen or damaged due to environmental conditions, termites.

Digitalization has provided an opportunity to help measure and record data for the development of successful new technologies. A successful digitalization strategy helps businesses find new, more advanced ways to solve problems that were previously impossible to solve.

Figure 3: Digital transformation benefits. Source: TechTarget

About DocuWare

Ultimate Content Services Platform - DocuWare: Document management and workflow automation

Ricoh now offers DocuWare – document management and workflow automation solutions, which have been around since 1988. DocuWare solution allows businesses to digitize documents, manage and work with business data with international security standards in the cloud, at corporate servers or a combination of both. From there, businesses can simplify your existing workflows quickly, focus on your core business and increase competition in the market.

With DocuWare, all procedures, papers, documents are digitized, classified and managed. All retrieval, tracking, approval, and reporting are managed synchronously, automating a single process on one platform with the intelligent help of artificial intelligence and machine learning. Currently, the DocuWare solution is trusted by reputable organizations around the world and the highest security according to international standards.

Manage your document with DocuWare, the smartest home for your documents.

By removing wasted time and uncertainty from processes, businesses and organizations are free to focus on work that drives productivity and profitability. DocuWare is the perfect solution for document management and remote work in the age of digital transformation.

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