Difference Between Digitization and Digital Transformation

I decode the differences between digitization, digitalization, and digital transformation. I explore the essence of " digital " in Lean Manufacturing.
Emphasizing a sequential approach-first Lean, then Lean again, and only then digital.
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✍ Here is the transcript of the video
▶ What does the term "digital" really mean?
It is crucial to fully understand the concept of digital and how to implement it correctly in a lean transformation strategy.
It is of utmost importance not to be captivated by the digital realm without a clear strategy, as there is a risk of digitizing waste.
▶ First Lean
then Lean again, and Lean once more, and only then digital.
It should be the value stream mapping that suggests digital solutions.
With that said, I want to explain the difference between the terms digitization, digitalization, and digital transformation.
▶ Digitization
Digitization is the simple conversion of analog or physical information into digital format.
For example, converting paper documents into a PDF format is an example of digitization.
▶ Digitalization
Digitalization, on the other hand, involves the use of digital technologies to improve models and processes.
For instance, providing maintenance workers in a company with SMART glasses to help them have maintenance instructions at the point of machine use is an example of digitalization.
▶ Digital Transformation
Finally, digital transformation is a cross-functional commitment across all company functions for a large-scale digitization. By large-scale, I mean involving manufacturing, people, processes, technologies, metrics, maintenance, etc.
The goal of digital transformation should be to bring positive results to the company's gains.
A successful example of digital transformation is the transition of newspapers from print to online.
▶ Conclusion
In general, organizations undergo a gradual transition from digitization, through digitalization, to digital transformation.
It is important to understand the differences, assess the organization's maturity level, and define who should be the leader of the digital transformation.
First Lean, then Lean again, and Lean once more, and only then digital.
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