What is Digitalization?
Digitalization is the process of converting business processes, services and operations into digital formats that can be executed or enhanced through technology. It typically involves using digital tools and systems to transform how work is performed, decisions are made and data is shared across an organization. It also includes optimization of more manual processes.
In industrial sectors, digitalization applies to both engineering and operations. This can include moving from paper-based documentation to electronic records, integrating intelligent sensors into equipment, or enabling workflows through enterprise platforms rather than manual handovers.
How It Differs From Digitization
While often used interchangeably, digitalization is distinct from digitization. Digitization refers to converting analog content, like paper drawings, into digital formats. Digitalization, on the other hand, goes a step further by using that digitized content to transform how people and systems interact.
For example, scanning an engineering datasheet is digitization. Embedding that datasheet into a searchable asset information system and linking it to a live maintenance workflow is digitalization.
Role in Business and Operations
Digitalization plays a foundational role in modernizing operations. It allows organizations to:
- Streamline information flow between departments, facilities and systems.
- Replace manual, document-based processes with automated, traceable workflows.
- Enable real-time data access and visibility across the asset lifecycle.
- Support strategic initiatives such as predictive maintenance, digital twins and remote operations.
Common Misconceptions
One common misconception is that digitalization is purely a technology project. In reality, it’s an operational shift that depends as much on process alignment and
data quality as it does on tools. Simply implementing new software does not mean an organization is digitally enabled.
Another misunderstanding is that digitalization only applies to new assets or greenfield projects. In fact, many digitalization efforts begin by unlocking value from existing infrastructure, legacy systems and historical records.
