Digital change, digitalization and digital transformation are terms that are now present in almost every corporate strategy. As a result, hardly any company today has more analog than digital information.
All these terms have something in common, but what are the exact differences? In fact, there are clear demarcations that are certainly not clear to everyone. To give you a better understanding of what constitutes a digital transformation and where digitization comes into play, we'll enlighten you below.
First things first: digitization means converting something analog to digital thanks to digital technologies. In contrast, digital transformation means the complete transformation of existing business processes and models.
What is digitization?
Digitization basically means implementing digital technologies into your existing, current business processes. So what you used to do in analog, you can do faster and more efficiently with the help of modern technologies and digital applications.
For example, you can use digital solutions to invoice expenses and travel costs or fill vacancies with the right talent. Thanks to data available in digital form that can be processed by information technologies, you can increase your efficiency. This means that there are digital solutions for every business unit that you can use to automate your work processes and save valuable time and costs. In short, digitization means converting analogue data into digital formats.

What is Digital Transformation?
You may be asking yourself whether you have not already achieved a digital transformation by automating business processes. However, digital transformation goes one step further. It implements completely new business models, organizations and ideas in such a way that products and services are sold in a completely new way. Consequently, digital transformation is fundamentally concerned with the question of whether a process is still needed in its existing form. Digital transformation is therefore a process based on the continuous development of digital technologies and solutions. Apart from that, the digital transformation is shaping and influencing our society and economy in the long term, e.g. in the form of social media, big data, cloud services or blockchain. Accordingly, the requirements, wishes and needs of customers are changing and companies are consequently being forced to completely rethink their business models. As a result, companies are discovering and implementing more opportunities for innovative and disruptive approaches to their business models. In addition, the development of new innovative technologies is in turn accelerating the process of digital transformation. The main drivers are business intelligence technologies such as data analysis, cloud computing, big data and IT security.
Furthermore, digital transformation not only describes an adaptation to changing customer expectations, but also a social change process. Other players also play a role, such as science, politics or state institutions, which also exert influence on each other and promote digital transformation. As a result, it can be said that maintaining consumer expectations is crucial as one of the driving forces behind the digital transformation. This forces companies to adapt technologies and disruptive business models. Digital transformation and digitalization are therefore not the same thing and cannot be used as synonyms for each other.

Digital transformation in everyday life - an example
A good example would be online shopping and order tracking.
You are certainly used to placing orders online or via an app and being able to track them directly. For example, notifications about the current location and delivery time of the order can be quickly viewed digitally. As a result, you can no longer even imagine that there is an online store that does not offer these functionalities. not offered. As a result, it is no longer appropriate to receive product information by fax, for example.
As a result, customers' preferred ordering channels have changed drastically over time. As a result, companies are forced to adapt in order to maintain customer satisfaction and loyalty. However, this is not just about the technology itself. Rather, it is about an innovative Solution approach to a problem and the creation of new processes that offer the customer added value. This approach creates new sales channels, products and business models.
Conclusion
Digital transformation and digitalization form an interplay. Digital transformation is a holistic process that requires digitalization as a stable foundation. However, digital transformation does not end with the automation of individual business processes or the mere introduction of a new technology. A digital transformation takes a holistic view of a business model. Instead, it questions the existing business processes and deals with the constantly changing, evolving requirements and expectations of customers. However, it should be borne in mind that the process of digital transformation does not end with the fulfillment of customer requirements, but must be continued on an ongoing basis. This means that companies must always remain innovative and demonstrate a high degree of flexibility and adaptability in order to meet the constantly changing circumstances - for the benefit of the customer and for stronger customer loyalty, which is ultimately the key to business success. In short: digitalization forms the basis - but transformation only happens holistically. Successful digitalization & transformation of a company build on each other.