If It Ain’t Broke, Digitize It Anyway

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Jul 26

Why wait for something to break when you can turn it into something better? Even well-oiled machines (literally and figuratively) need a tech upgrade to stay ahead of the curve.

Digitization isn't about overhauling your entire operation; it's about taking those manual processes and tasks and making them digital. Even if everything seems to be running smoothly, digitizing can bring a multitude of benefits to your manufacturing business. From reducing errors to speeding up operations, digitization ensures that your processes are more reliable and efficient. Why settle for "good enough" when you can easily make things better?

Basic breakdown of terms

Digital refers to using technology that relies on binary code (ones and zeros) to represent data. Think of it like turning everything into a format that computers understand. For example, an old-school photograph is physical, but when you scan it and save it as a JPEG file on your computer, it becomes digital.
Digitization is the process of converting something from analog (like paper) to digital (like a PDF). Imagine you have a stack of handwritten meeting notes. When you scan those notes and save them on your computer, that's digitization. The content is the same, but now it's in a digital format.
Digitalization goes a step further. It's not just about converting things to digital formats but using digital technology to change how a business operates. For example, instead of just scanning your handwritten notes, you start using an app that not only digitizes your notes but also organizes them, sends reminders, and integrates with your calendar. This changes how you manage and interact with your notes, adding new value and efficiency.
Digital Transformation is a broader concept. It involves rethinking and overhauling business processes and models to leverage digital technologies fully. For instance, if a traditional bookstore transitions into an online platform that uses AI to recommend books, offers e-books, and connects with readers through a community forum, that's digital transformation. It's about reimagining the business in a digital age, not just making incremental improvements.

Seven benefits of digitization in the manufacturing industry

Increased Efficiency: Speed up manual processes and reduce downtime.
Enhanced Accuracy: Minimize human error with digital precision.
Better Data Management: Easily collect, store, and analyze data.
Cost Savings: Reduce labor and material costs through optimized processes.
Improved Compliance: Ensure regulatory standards are met with accurate records.
Scalability: Easily scale operations without a proportionate increase in effort.
Real-Time Monitoring: Keep track of operations and performance in real-time.

Even back in 2014 McKinsey showed that digitizing information-intensive processes can cut costs by up to 90% and turnaround times improved by several orders of magnitude.