The current digital transformation trend is often excessively interpreted by many companies and even by technology vendors and management consulting services. We will start by discussing several terms that often overlap, thus causing confusion for many parties to understand them. Moreover, this writing can be used to comprehend the definitions and meanings contained within, so that during discussions, we can start from the same understanding.

The first term is digitization, simply put, this process involves converting analog data we possess into digital format. The simplest example is the scanning process of photos or company documents printed on paper. Digital form facilitates the use of our data, for reprinting, sending files to friends and relatives, or simply for backup in digital form.

The digitalization process involves process transformation, not just changing data formats. Digitalization will change business processes within a company. The use of increasingly advanced technology allows many processes to be performed better, including the integration process of all data in the company. Technology becomes an enabler so that many processes can be done more efficiently and often save costs. A common example is the milk production process, which used to be manual but is now automated. An operator only needs to press a button, and all production processes will run automatically until completed.

The last part is digital transformation, which in many ways is considered the pinnacle of digital technology usage. While digitalization processes heavily rely on technology, digital transformation involves many other components. These include customers, all personnel within the company. Another important part that needs to be integrated is the company's strategy.

Often, among the customers we encounter, there is a mix-up in understanding these three terms. For example, the digitization process, such as converting handwritten reports into computer-input reports without changing the business process, is already considered a digital transformation process. Another example is customers who undergo digitalization processes but already consider them as digital transformation processes. This is often exacerbated by many technology companies, which sell digitalization processes packaged as digital transformation. In digital transformation, the focus should be on the word "TRANSFORMATION", not "DIGITAL". Digital transformation describes the process of change involving all supporting factors, especially human factors, to become better, certainly with the help of technology (digital).