Digital Transformation Stages

Stage 1: Digitization:

This is the foundation. It's about converting analog information (paper documents, physical objects) into digital format (electronic files, images). Think scanning documents, recording audio, or taking photos. Digitization alone doesn't change how things are done, it just changes the format of the information.

Example of a travel agency

Identifying paper brochures and scanning then storing them as PDFs in in a secure cloud storage solution ?then accessible to agents and customers through an online portal.

Stage 2: Digitalization:

This builds upon digitization. It's about using digital technologies to automate and improve existing processes. This can involve things like online booking systems, customer relationship management (CRM) software, or automated workflows. Digitalization doesn't necessarily change the core business model, but it makes things faster, more efficient, and more flexible.

Example of a travel agency

Building an online booking system for customers to search and book flights,?hotels,?and tours then Integrating the booking system with airline and hotel reservation systems for automatic data exchange. Collecting and Analyzing ?data on customer bookings,?travel preferences,?and website behavior then personalize recommendations,?and optimize marketing campaigns.

.Stage 3: Digital Transformation:

This is the big shift. It's about fundamentally rethinking and redesigning how a business operates by leveraging digital technologies to create new value propositions, products, and services. This can involve changing the core business model, entering new markets, or creating entirely new ways of doing business. It's all about using digital to disrupt and innovate.

Example of a travel agency

Vision to develop a mobile app offering personalized travel packages and real-time updates then creating a culture of innovation and encouraging feedback from agents and customers. Partnering with AI companies to develop a chatbot for instant travel assistance. Implementing the mobile app with AI-powered chatbot and integration with travel providers. Continuously monitor app usage,?user feedback,?and competitor innovations to adapt and improve the app experience.

?Here's an analogy:

• Think of digitization as putting books on a bookshelf. You're making the information more accessible, but you're still reading the same content.
• Digitalization is like getting an e-reader. You're still reading the same book, but it's easier and faster to access and navigate.
• Digital transformation is like writing a whole new book. You're using the same basic elements of language and storytelling, but you're creating something entirely new and different.