Key takeaways
- Digitization converts paper records to a digital format, while digitalization uses those records in automated systems.
- Employees need both hard and soft skills to excel with digitalization.
- E-learning, blended learning, gamification and role playing are among the ways to build these skills.
What is the difference between Digitization versus Digitalization?
There are several steps in order for companies to achieve a digital transformation, which IBM has defined as, “adopting digital-first customer, business partner, and employee experiences.” This is typically achieved through:
Digitization - The process of converting paper (analog) records into a digital format
Digitalization - Using digital records in an automated system for improved efficiency
While a complete digital transformation can take time to implement, the investment and effort is often profitable, for example:
Zippia found in 2022, that companies who focused on a digital-first model, were 64% more likely to achieve their business goals as compared to their competitors.
Also, according to the U.S. Census Bureau, in the third quarter of 2023, the estimated retail e-commerce sales were $284.1 billion.
Digitalization has impacted every industry as businesses are focusing more on tailoring their products to better serve their customers. According to Salesforce, 61% of customers indicated they preferred self-service options for simpler issues. However, 68% also indicated they wanted a fast response if they needed more personal assistance.
How digitalization is often used in various industries
Banking
- Providing customers online budgeting and planning tools
- Offering mobile banking for customers to pay bills
Education
- Developing e-learning platforms that adapt to learning styles
- Implementing learning management systems for tracking student progress
Healthcare
- Allowing access to patient records for telehealth care
- Using electronic prescriptions to track dosages for medication
Manufacturing
- Monitoring maintenance for remote equipment on digital platforms
- Using technology to analyze and anticipate better quality control
Retail
- Streamlining digital payment methods and loyalty programs
- Implementing artificial intelligence for personalizing the customer experience
What skills will job seekers need for future digitalization?
Employees need both hard and soft skills in order to excel with digitalization. Some of the skills that will help workers achieve the best results, include:
Hard skills
Data analysis - reviewing information to understand customer preferences
Project management - planning and scheduling tasks electronically
Retrieving data - learning how to use software to quickly access information
Soft skills
Adaptability - being able to a change course of action if a problem occurs
Cooperation - showing support when working with a team to complete tasks
Engagement - willing to learn new software and skills to complete projects
Why is it important for employees to develop these skills?
As technology changes quickly, it is important for employees to stay current in both learning new processes and to also be mentally prepared for any difficulties they may encounter. Learning the hard skills of how to complete tasks, combined with a cooperative and adaptable attitude tends to also make the learning process easier.
Coursera also highlights other benefits for developing new technical skills, which includes:
- Increased proficiency that often leads to promotions and higher compensation
- Expanding technical knowledge and opportunities to work with different teams
- Discovering new ways to collaborate and communicate when working on digital tasks
- Building analytical skills for achieving well-informed decisions and business growth
- Reinforcing the willingness to adapt to new processes often ensuring job relevance
What strategies can employees take to develop these skills?
There are a variety of opportunities for employees to explore when they are looking to expand their knowledge and abilities in using new technology. According to Whatfix, besides on-the-job training, other effective learning methods, can include:
E-learning - online courses that are generally self-paced, can be mobile, and promote engagement
Blended learning - combines both traditional and e-learning for a more rounded experience
Gamification - gaming rewards that are incorporated into online training to help engage students
Instructor-led learning - typically involves a classroom setting with lectures and visual aids
Role playing - problem solving scenario is presented and employees act out their responses
Once employees complete their initial training, generally more instruction will be needed as software updates and processes are changed. Staying informed about trends and possible issues will also help employees to troubleshoot or workaround any known problems.
How will these skills be the most beneficial for employers in the future?
According to Digital Leadership, there are many benefits when employees are guided to implement digitalization, including:
Improved productivity - automation will often help to speed up workflow and enhance efficiency
Accessible information - employees can search for information faster using system portals
Lower costs - less time and staff is necessary for processing requests and storing physical records
Remote access - remote employees can access data from anywhere for timely project management
Competitive edge - companies can be more competitive by providing better customer experiences