Digitalization Notes

Digitalization requires expertise and understanding of the digital transformation process.
This document covers the difference between digitalization and digitization, risks, digital transformation's 5 building blocks, AI basics, technology selection, and converting HRM practices to e-HRM.

Digitization: Converting from analog to digital form (e.g., cassette to digital file).
Digitalization: Moving to a digital business after digitization (e.g., enabling online orders on a converted product catalog website).

Saves space and cost, easy access, improves communication, opens new opportunities and improves efficiency.

High investment cost, may lead to legal issues and risks associated with centralized information.

Identify risks, assign probability (1-10), and impact (1-10).
Use risk matrix (Impact vs. Probability) to prioritize risks:
- Zone 1: Low probability, low impact.
- Zone 2: High probability, low impact.
- Zone 3: Low probability, high impact.
- Zone 4: High probability, high impact (highest priority).

Using digital technologies to create new or modify existing business processes, culture, and customer experiences.
It includes business model, processes, culture, and technology changes.

Strategy & Culture: Conceptualize a strategy that incorporates the culture of a business.
Staff & Customer Engagement: Manage resistance to change through communication and commitment.
Process & Innovation: Continuously evolve processes to achieve higher efficiency and innovation.
Technology: Understand that competitive advantage is implemented by management and strategies and not technology itself.
Data & Analytics: Use data and analytics for decision-making and experimentation.

Staff plays a vital role; resistance to change can be an obstacle.
Communicate the value of the project, clarify individual roles, and provide necessary support and training.

Companies need to transform to survive, not just to gain a competitive advantage.
Digital disruption forces adaptation to technology.

Artificial Intelligence (AI) involves algorithms enabled by constraints and representations that support models targeted at loops that tie thinking, perception, and action together.
AI programming focuses on learning, reasoning, and self-correction.

Learning: Acquiring data and creating algorithms to turn data into actionable information.
Reasoning: Choosing the right algorithm to reach a desired outcome.
Self-correction: Fine-tuning algorithms to ensure accurate results.

Step 1: Understand the Business Needs.
Step 2: Research the technology and its operational aspects.
Step 3: Evaluate and select solutions based on customer referrals, after-sales service, and stability and evaluate ROI and PBP.
Step 4: Define clear ownership for each part of the project.
Step 5: Create a proper sales agreement or contract.