Digitization essentially refers to taking analog information and encoding it into zeroes and ones so that computers can store, process, and transmit such information.
In the enterprise context, digitization is important both for dealing with analog information as well as ‘paper-based’ processes – where ‘paper-based’ is nothing more than a metaphor for analog.
It’s important to remember, however, that it’s the information you’re digitizing, not the processes – that’s where digitalization comes in. “Digitalization is the use of digital technologies to change a business model and provide new revenue and value-producing opportunities,” according to Gartner’s glossary. “It is the process of moving to a digital business.”