What is digitization


Four dimensions of digitization can be distinguished:

Digital products: These are non-physical, data-based services that - alone or integrated into physical goods - create benefits for a customer. As a rule, they are automated and provided without the direct involvement of people in the core service process.

Digital processes: This is about the data-based representation of reality for the organization and control of processes. Different degrees of maturity are distinguished. Companies have a low degree of digital maturity when they can make the processes visible by providing data-based information, e.g. about stocks, orders or resource use. Companies have a high degree of maturity when they can also map complete processes as integrated data models and thus control the company. With these "virtual, integrated images" web shops can be operated, customers analyzed or procurement, sales and production processes can be carried out fully automatically.

Digital networking: This is about the extent to which individual processes are connected in overall digital systems. This is not limited to internal company processes, but can also extend to customers, suppliers and other actors in the value chain.

Digital business models: Digital products are made available to customers for a fee. The core service and customer processes themselves are heavily digitized and the customer is included via process data.