What is digitization? What is the meaning of digitalization?

Digitalization is the advanced stage of information technology development and the main driving force of digital economy. With the rapid development of the new generation of digital technology, all walks of life use digital technology to create more and more value and accelerate the digital transformation of all walks of life.

Digitalization in a narrow sense: Digitalization in a narrow sense refers to the use of information systems, various sensors, machine vision and other information communication technologies to transform complex and changeable data, information and knowledge in the physical world into a series of binary codes, which are introduced into computers to form recognizable, storable and computable numbers and data, and then use these numbers and data to establish relevant data models for unified processing, analysis and application. This is digitization.

Generalized Digitalization: Generalized Digitalization is to systematically and comprehensively change the strategy, structure, operation, management, production, marketing and other aspects of enterprises, governments and other subjects by using the new generation of information technologies such as the Internet, big data, artificial intelligence, blockchain and artificial intelligence, emphasizing the reshaping of the whole organization by digital technology, and the ability of digital technology is no longer just to solve the problem of reducing costs and increasing efficiency, but to become an empowerment.

Why digitalize?

Digitalization has opened up the isolated island of enterprise information and released the value of data. Informatization is to make full use of information systems to deal with business processes such as production process, transaction processing, cash flow and customer interaction, and generate relevant data, information and knowledge to support the improvement of business efficiency. Informatization is more of a fragmented and chimney-like application, while digitalization is the use of a new generation of ICT technology to open up enterprise data islands through real-time acquisition of business data, network collaboration and intelligent application, so that data can flow freely in enterprise systems and realize data value.

Digitalization takes data as the main production factor. Digitalization, taking data as the core production factor of an enterprise, requires that all valuable people, things and things in the enterprise, such as business, production, marketing and customers, be transformed into digitally stored data to form storable, computable and analyzable data, information and knowledge, which, together with the external data obtained by the enterprise, can guide the production and operation of the enterprise through real-time analysis, calculation and application of these data.

Digitalization has changed the production relations of enterprises and improved the productivity of enterprises. Digitalization makes enterprises change from traditional production factors to digital production factors, from traditional division of labor to networked collaborative production relations, from traditional hierarchical drive to data intelligent application as the core drive, which doubles the productivity. Enterprises can gain real-time insight into all information in various dynamic businesses, make optimal decisions in real time, rationally allocate enterprise resources, adapt to the ever-changing competitive environment of market economy, and maximize economic benefits.