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Digitalization

Digitalization means bringing digital technologies (cloud, IoT, AI) into a company's processes to improve efficiency, data access and innovation. Unlike digitisation, it transforms operations and business models at a fundamental level.

8 min read Transformation Processes

Definition at a glance

Digitalization is the integration of digital technologies into a company's processes to improve their efficiency, flexibility and accessibility — far beyond simply turning paper documents into files.

  • It builds on cloud, IoT, artificial intelligence and big data.
  • It is neither digitisation nor digital transformation.
  • Its real impact depends on training and on people actually coming on board.

What is digitalization?

Digitalization is the integration of digital technologies into a company's processes in order to improve their efficiency, flexibility and accessibility. It is not only about scanning documents, but about using the potential of digital technologies (cloud, IoT, artificial intelligence, big data) to transform and optimise operations, communication and business models.

In practice, digitalization means adapting business processes to new technologies: automating tasks, improving how data is collected and analysed, simplifying collaboration between teams and departments. Unlike digitisation, which is limited to converting analogue information into digital format, digitalization reshapes operating models at a deeper level.

Why does digitalization matter?

In an increasingly connected world, digitalization makes companies more competitive on four fronts.

  1. Efficiency: automating repetitive tasks frees up time for employees and reduces human error.
  2. Customer experience: personalised services available through digital platforms match what customers now expect.
  3. Data analysis: collecting and using data in real time improves decision-making.
  4. Innovation: adopting digital tools keeps a company at the front of its market, particularly in e-commerce, healthcare and manufacturing.

What are the concrete benefits for companies?

  • Lower costs: digital technologies automate expensive processes such as payroll, accounting or stock management.
  • Higher productivity: digital tools make collaboration easier, particularly through cloud platforms and collaborative software.
  • More flexibility: digitalised processes adjust faster to crises or economic shifts — remote working and the shift to e-commerce demonstrated exactly that.

Digitalization or digital transformation: what is the difference?

The two terms are often used interchangeably. Digitalization means bringing digital technologies into existing processes to optimise them. Digital transformation goes further: it involves a deep change in company culture and business model around digital. The first optimises what exists, the second reinvents how the company operates.

Use case: General Electric's digitalisation with Predix

How an IIoT platform turns industrial maintenance into an economic advantage.

Manufacturing · Energy and rail

The context

General Electric undertook a large-scale digitalisation of its industrial operations with Predix, a platform built on the Industrial Internet of Things (IIoT). Predix connects and analyses data from industrial equipment in real time in order to improve efficiency, cut costs and prevent unplanned downtime.

Application in energy

GE uses Predix to optimise power plant management through the digital twin concept. This digital model monitors and simulates equipment condition in real time, which makes it possible to identify failures before they happen. Predictive maintenance solutions built on Predix cut operating costs by several million dollars for gas-fired plants.

Application in rail

GE also transformed locomotive operations with Trip Optimizer, which optimises train acceleration and braking against topography and load conditions. These innovations help rail operators save up to a billion dollars a year in fuel consumption.

The GE example shows that digitalisation creates value when it changes the way an organisation operates, not just the format of its data.

How do you make digitalization work?

  1. Audit current processes: identify the ones that will genuinely benefit from being tooled.
  2. Choose the right digital tools: every sector has its own needs, from CRM to ERP and on to AI.
  3. Train employees: digitalization only has an impact if teams master the tools that get deployed.
  4. Measure and adjust: it is a continuous process that needs regular steering to tune tools and processes against results.
Knowmore's expertise

Knowmore's expertise in digitalisation.

Training teams is the stage at which most digitalisation programmes lose their return on investment. K-NOW supports users directly inside the tools that have been deployed, K-STUDIO lets you build simulated learning journeys, and K-VALUE measures real usage so support can be targeted where it is needed.

The result: digitalised processes get used as intended, and the expected gains materialise instead of staying on paper.

Conclusion

Digitalization has become a pillar of corporate strategy. It improves performance, reduces costs and makes it possible to anticipate shifts in markets and customer expectations.

In a constantly changing environment, adopting digital technologies is a condition for staying competitive — provided employees genuinely take ownership of them.

Frequently asked questions

What are the challenges of digitalization?

The main challenges are resistance to change from employees or leadership, the upfront cost of implementing new technologies, data security and the management of cybersecurity risk, and the need to train employees on new technologies for adoption to succeed.

How does digitalization improve the user experience?

By turning traditional processes into digital services, digitalization gives users smoother, faster and more personalised experiences. It allows real-time interaction with systems, wider access to services and better data management, all of which improves overall satisfaction.

Which tools support digitalization in a company?

Companies rely on document management software, business process management (BPM) platforms, digital adoption solutions such as Knowmore's, online collaboration tools and cloud services, along with artificial intelligence and machine learning systems to automate processes.

Let's get practical

Digitalising a process is half the work.

Show us your digitalised processes: we will show you how Knowmore makes sure they are genuinely used.