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Digitization, Digitalization and Digital Transformation

The document discusses digitization, digitalization, and digital transformation in the context of a new era. [1] Digitization is the conversion of analog assets into digital format, digitalization is using technology to enhance processes, and digital transformation is about new strategies and ways of thinking to address customers, competition, and data. [2] Examples are provided on how companies like Vinamilk and Maersk are digitizing and digitalizing supply chains using blockchain technology. [3] The document proposes an approach is needed for the new era across these concepts to address problems with current trust systems and shifts toward centralization, distribution, and decentralization.

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Đức Huyy Lê
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119 views25 pages

Digitization, Digitalization and Digital Transformation

The document discusses digitization, digitalization, and digital transformation in the context of a new era. [1] Digitization is the conversion of analog assets into digital format, digitalization is using technology to enhance processes, and digital transformation is about new strategies and ways of thinking to address customers, competition, and data. [2] Examples are provided on how companies like Vinamilk and Maersk are digitizing and digitalizing supply chains using blockchain technology. [3] The document proposes an approach is needed for the new era across these concepts to address problems with current trust systems and shifts toward centralization, distribution, and decentralization.

Uploaded by

Đức Huyy Lê
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Digitization, Digitalization and Digital Transformation

An Approach
to the New Era

by Louis Nguyen
MA | Marcoms
Foreign Trade University
???: 5th Revolution

Late 1700’s: 1st


Steam Revolution

Mechanization,
factories, steam
plants, steam
ships, steam trains,
early globalization

Early 1900’s: 2nd Electricity


2016: 4th Technology
Revolution
Late 1900’s: 3rd Digital Revolution
Accessible power, lighting, motors,
Revolution Cyber-physical systems, Smart
refrigeration, assembly lines, mass
Personal computer, programming, technologies, big data, advanced
production
data, automation, electronics, analytics, artificial intelligence,
internet, e-commerce, email, ... autonomous vehicles
• Digitization
• Digitalization
• Digital Transformation
Digitization

Physical world Digital world

Input Sensor Output


Analog information ADC Digitized Information
Sampling, Quantizing & 11010101
Encoding 10100101
00101011

Digitization is the conversion of analog assets


Micro- Rain Vibration
Camera Ultrasonic
phone Sensor Sensor into a digital format of ones and zeroes.
*ADC: Analog Digital Converter
Digitalization

Digitalization
is using technology to enhance processes.

Input Business Output


Data Process Data

A business process is a sequence/arrangement of related tasks which, once completed,


will lead to the accomplishment of a defined business goal.
Business processes are in the heart of information system and at the core of digitalization.
*ADC: Analog Digital Converter
Digitalization

Example: Selling on eBay


eBay Digital transforms the process of selling an item from

Snap a Fill in Set a Follow Trust Find Visit post Receive


photo forms price auction buyer ? packaging office money

to as simple as

Snap a Receive
photo
The app finds the best price (AI), ships a box, pick-up your package. It’s like magic! money
Digital Transformation

Customer Competition

Inno-
Data Value
vation

Digital transformation is not about technology. It is about strategy and new ways of thinking.

Source: The digital transformation playbook, David L. Rogers


Digital Transformation

Customer

Twitter

Company Company

IG

Facebook

Mass Market Model Customer Network Model


Digital Transformation

Customer

Custo- as dynamic
as mass market mers networks

Communi
broadcasted cation
two -way

Key
the company influencer
the customer

to inspire
to persuade
Marketing purchase, loyalty,
purchase
& advocacy

of scale Economy of values

Value
one way flow reciprocal
Digital Transformation

Competition
The competition shifts from products to platforms, which are businesses that create value by facilitating direct interaction between two or more distinct
type of customers.

Other dominant platforms?

Business Transport Educa-


Retail Finance Gaming
Software -ation tion
Digital Transformation

Competition

Compet- across fluid


within industries ition industries

clear between Distinc- blurred between


partners & rivals tion partners & rivals

zero-sum game Rivalry cooperative

held inside Key assets outside network

exchangeable
unique Features between partners
& rivals

a few per Number one winner


of players
category takes all
Digital Transformation

Data

From data silos … … to Strategic Assets

The Data Warehouse Model The Data Lakehouse Model


For: reporting For: reporting, merging with analytics & machine learning for
further usages.
Digital Transformation

Data

within firm & Data generated


expensive Generation everywhere

Storing & Turning into


Challenge
managing valuable infor.

Firms only make


Unstructured data
use of structured Structure
is invaluable
data

Managed in Connecting
Value
operational silos across silos

Assets to create
Tool to optimize Usage
values
process
An approach to the new era of
Digitization, Digitalization and Digital Transformation
An approach to the new era

Problem with the current ‘trust’ system


An approach to the new era

Centralization, Distribution and Decentralization


Digitization

Oracle: The ‘converter’ of blockchainization


Chainlink is the world’s standard of oracle that converts real-world data and information to be operative on blockchains.
Digitalization

Vinamilk: TE-FOOD Solutions


Vinamilk, one of the largest dairy companies in Southeast Asia implements TE-FOOD’s blockchain based traceability system to track
and trace its Organic Milk product.
Maersk and IBM TradeLens: Maersk, the world's largest
shipping company, partnered with IBM to develop
TradeLens, a blockchain platform for global supply chain
management.

TradeLens provides real-time visibility of


shipments, automates documentation processes,
and reduces paperwork and delays in international
trade.
Digitization, Digitalization and Digital Transformation
An Approach
to the New Era

by Louis Nguyen
MA | Marcoms
Foreign Trade University

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