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Digital Transformation or Automation ?

Digital Transformation or Automation ?

 

Digital Transformation and Digital Automation are related concepts; however, they have clear differences and belong to different stages in the technological development of a society.

Digital Transformation: An Initial and Strategic Approach

To begin with, Digital Transformation is an initial, broader, and strategic concept. It emerged in the first 15-20 years of the 21st century, involving the gradual change of an organization’s operations, processes, and business models through digital technology.

This transformation includes the adoption of new digital tools and technologies, such as computerization, automation, and e-commerce. Moreover, it involves rethinking customer experiences, redefining business strategies, and implementing cultural and organizational changes. The main goal, therefore, was to improve competitiveness and responsiveness to the changing market dynamics.

Digital Automation: A Subsequent Technological Step

On the other hand, Digital Automation is a subsequent technological step that follows Digital Transformation. It specifically focuses on automating manual or repetitive tasks and processes within an organization by leveraging digital technology and artificial intelligence (AI).

The primary goal of digital automation is, thus, to optimize operations, increase efficiency, reduce errors, and save both time and resources.

Key Differences Between Transformation and Automation

Unlike digital transformation, which involves broader strategic changes, automation does not always require such changes. However, it generally has a greater scope and integrates various technologies and digital assets, such as data analytics, cloud computing, the Internet of Things, robotics, and artificial intelligence.

Challenges and Opportunities of the Technological Revolution

Nonetheless, every technological revolution brings its own risks and challenges, such as the elimination of manual jobs and the need to retrain staff. At the same time, however, it creates new job opportunities.

For instance, the implementation of generative artificial intelligence, being an emerging technology, requires supervision. While it can perform the work of many people in less time, we are still far from fully delegating tasks to it. This is where the «human correction factor» becomes essential.