Breaking it down: Automation, Digitization and Digital Transformation - What’s the Difference?


Hello Curios Leaders,

The world is going digital, and there is no escaping that fact. However, with so many digital buzzwords out there, it can be hard to keep up it all straight.

Three of the main terms that often get interchanged are automation, digitization, and digital transformation. But what do they exactly mean, and how do they differ from one another? In this blog post, we will explore each of these concepts in-depth to provide you with a better understanding of what they entail.

I like to think of them like Babushka dolls... Small, Medium and Large variations of the same intent, which could all fit into one large construct.

đź§±Laying new foundations with Digitizationđź§±

Have you seen what they are doing to recipe books? Even Jamie Oliver has an app now - you dont need to buy the paper version.

Digitization, on the other hand, refers to the process of converting an analogue object (like a paper document) into a digital format. Digitization is the first step towards digital transformation. This process involves scanning the analogue object, converting it into a digital format, and storing it in a digital system.

For instance, when you scan a document and save it on your computer, you haven't entirely digitized it. You still manually have to open the document to read or edit it. However, if you use Optical Character Recognition (OCR) to scan and convert the text contained in the document into a digital format, you can then use it for various purposes like data analysis or automated workflows.

If you are still collecting and storing paper copies, this is your first mountain to climb. It will improve the quality of your data and minimise friction in your customer experience as they are able to upload documentation that is accurately captured and stored in a quickly retrievable way.

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⚡Simplifying with Automation⚡

When I was a kid, my mom got an electric hand held mixer. No more manual cranky egg beater. Much faster, and no blisters. And Mum still had enough sense of humor to let me lick the beater when it was done. That's kitchen Automation.

In the digital transformation lexicon Automation refers to the process of using technology to carry out repetitive tasks that would otherwise be done by humans. In other words, it's the use of machines instead of people to perform individual specific tasks. This can range from simple automated actions like sending a scheduled email to more complex processes like chatbots that interact with customers. Automation is primarily used to improve efficiency, increase accuracy, and reduce the workload on employees, allowing them to focus on other essential tasks that require human input.

No one is be left out of these efficiency gains. Automation technoogies, like RPA, can be used in Enterprise contexts - UiPath, Automation Anywhere and Blue Prism. AND Entreprenuerial contexts with budget to suit Zapier and Power Automate from MSN.

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đź’«Digital Transformationđź’«

A few years ago Mom upgraded to a Thermomix - this kitchen thing has digitized recipes that direct an automated sequence that measures ingredients, heats to the right temperature and mixes at the right speed for the defined number of minutes in the the recipe. Best (fastest) custard ever!

Digital transformation involves entirely re-imagining and transforming large parts of an organization's operations, processes, and culture to leverage technology's full potential to improve performance, and create new business models, and value propositions. In other words, it's the integration of digital technology across several areas of an organization - finance to production to customer service - to improve business processes, customer experience, and financial performance.

In a nutshell, digital transformation is a major change for an organization and involves adopting new ways of using technology to achieve strategic business goals.

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So there you have it. Automation, digitization, and digital transformation are crucial elements of a modern organization's digital initiatives. Understanding them and their differences can help organizations communicate better, and implement the right strategies to reap their benefits fully. However, it's not as simple as picking one or the other. Instead, like the babushka dolls, these three digital concepts are interdependent and can work together to achieve optimal results.

Organizations that successfully integrate these concepts into their operations can become more efficient, enhance customer experience, and remain competitive in a rapidly evolving digital landscape.

Stay Hungry

Anne Gray

PS. When you are ready, here are a few ways we can work together:

  1. If you are curious about how you can improve your customer journey design I have this 100 minute masterclass that will teach you how to map and design the customer journey to transform your customer experience and grow revenue. Find the Friction is our fully online and on demand masterclass that upskills business leaders and CX professionals (only available for Solutioneers Blog subscribers at the moment).
  2. I help customer obsessed courageous decision makers transform their people, brands and organisations to be truly customer-centric inside and out, to win and retain customers.
  3. I offer business gap analysis and guide business owners in their selection of the right tools and habits to make a difference across all areas of the business to bring in more revenue and streamline operations.

You can book your Solutioneers Blog VIP 60 minute call with me if you want to talk about how I can help you with your business transformation.

Anne đź’ˇ Gray

With an impressive background in the world of business, Anne Gray is a highly sought-after Consultant, dedicated to helping customer-obsessed and courageous decision-makers redefine the customer-centric strategy for their organizations. Armed with her MBA and extensive experience, Anne works with mid-growth companies and startups into enable holistic transformation into customer-centric powerhouses. In her early career, Anne studied a B.Sc Hons in Marine Ecology, and taught High School Physical Sciences before moving into Telecoms. Anne successfully sold her telecoms consulting and managed services business in 2022, with an already ignited her passion for optimizing the customer service experience. She puts her extensive knowledge, skills, and passion into creating transformative strategies and customer-centric cultures for businesses in need of a fresh perspective. Her expertise in crafting transformational methodologies and fostering a collaborative mindset has made her an invaluable asset for forward-thinking business leaders. Anne's dedication to continual improvement and value-added collaborations extends to her work with other business consultants and coaches. This approach allows her to provide holistic solutions to her clients, constantly expanding her wealth of knowledge to better serve those who seek her guidance. Anne publishes her experience in newsletters and masterclasses. If you're searching for an innovative, customer-focused leader to elevate your business to the next level, trust Anne Gray to deliver the results you need with unwavering dedication and passion. Check out the resources I offer below and sign up for my newsletter!

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