International Journal of Trend in Scientific Research and Development (IJTSRD)

Volume 9 Issue 3, May-Jun 2025 Available Online: www.ijtsrd.com e-ISSN: 2456 – 6470

Digitalization
Paul A. Adekunte1, Matthew N. O. Sadiku2, Janet O. Sadiku3
1
International Institute of Professional Security, Lagos, Nigeria
2
Roy G. Perry College of Engineering, Prairie View A&M University, Prairie View, TX, USA
3
Juliana King University, Houston, TX, USA

ABSTRACT How to cite this paper: Paul A.

Digitalization is the process of leveraging digital technologies to Adekunte | Matthew N. O. Sadiku | Janet
transform business processes, operations, and workflows, to drive O. Sadiku "Digitalization" Published in
and enhance efficiency, productivity, and innovation. Digitalization International Journal
of Trend in
goes beyond mere digitization, which is the conversion of analog data
Scientific Research
into digital formats, by the use of digital tools to automate tasks, and Development
improve decision-making, and generate value (added value) for (ijtsrd), ISSN: 2456-
businesses and customers. Furthermore, digital transformation is a 6470, Volume-9 |
cultural shift which often involves reimaging business models and Issue-3, June 2025, IJTSRD81091
customer interactions, as a process that requires a combination of pp.657-665, URL:
technology innovation, organizational agility, often leading to www.ijtsrd.com/papers/ijtsrd81091.pdf
fundamental shifts in the way businesses operate, compete, and grow
in the digital age. The paper looks at digitalization, digitization, and Copyright © 2025 by author (s) and
digital transformation cum the pros and cons, and as well as their International Journal of Trend in
Scientific Research and Development
benefits to humanity.
Journal. This is an
KEYWORDS: Digitalization, digitization, digital transformation, Open Access article
technology, COVID-19, artificial intelligence (AI), Internet of Things distributed under the
(IoT), blockhain, cybersecurity, automation, Big Data, digital twin terms of the Creative Commons
Attribution License (CC BY 4.0)
(http://creativecommons.org/licenses/by/4.0)

INTRODUCTION
Organizations today are known to face increased networking possibilities and enables cooperation
pressure to adapt to the digital world, driving between different actors, who, for example exchange
businesses to evaluate strategies like digitalization, data and thus initiate processes. Hence, in this
digitization, and digital transformation, as shown in context, the DT of business model plays an essential
Figure 1. These terms are often used interchangeably, role because business models’ individual elements
but they represent distinctly different processes with that can be digitally transformed [2].
varying levels of complexity and strategic focus. HISTORICAL BACKGROUND
However, each strategy serves a unique purpose,
The concise historical background on digitization,
starting from the foundational act of converting
digitalization, and digital transformation are as
analog data into digital formats to completely
presented below [3]:
reshaping business models for long-term growth. The 1. Digitization: Digitization is defined as the
above concepts must be well understood in order to
process of converting analog information into
make informed decisions tailored to organizational
digital formats. It is the foundational step toward
priorities [1].
digital technologies.
There is the question of what do vehicle makers like Historical Background:
Rosenbauer, logistics company DB Schenker,
 1950s-1970s: This was the advent of computers
compressor manufacturers such as Bauer, elevator
initiated digitization. Libraries and governments
producers like ThussenKrupp, and Hagleitner, a
began converting physical records into digital
hygiene goods corporation, have in common? They formats for storage and processing.
all use the potential of digitization to offer customers  1980s-1990s: The rise of personal computing and
smarter and faster services and actively shape their
scanning technologies allowed broader
business model’s digital transformation (DT), as
digitization of text, images, and audio.
shown in Figure 2. DT affects all sectors of society, in
particular economies. It also as well opens new

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 2000s-Present: Mass digitization of archives,  It allows for better data analysis and insights,
books (e.g., Google Books), and media became leading to informed decision-making.
common, enabling digital storage and retrieval.
4. Cost reduction
2. Digitalization: Digitalization refers to the use of  Reduces the costs associated with manual
digital technologies to change business processes processes and physical infrastructure
and improve productivity [4, 5]:  Saves time and resources by minimizing errors
Historical background: and rework.
 1990s-2000s: As the internet grew, companies  Enables long-term cost savings through more
started to digitize workflows (e.g., online forms, efficient processes and reduced maintenance
email communication) and automate processes. costs.
 2010s: Widespread adoption of ERP systems, 5. Increased agility and responsiveness
CRM platforms, and cloud computing marked  It enables businesses to quickly respond to
deeper integration of digital tools in operations. changing market conditions and customer needs.
3. Digital Transformation: Digital transformation  It allows for rapid adaptation to new
is defined as a broader, strategic change that developments and opportunities.
leverages digital technologies to transform  It enhances competitiveness through innovation
business models, customer experiences, and and rapid adaptation to market changes.
organizational culture [6-8]: 6. Enhanced customer experience: Digitalization
Historical Background: offers personalized experiences, quicker
 2010s-Present: This is driven by advances in AI, responses, and tailored solutions, thereby
IoT, big data, and mobile technology, with boosting customer satisfaction.
businesses rethinking their entire value chains. 7. Faster time-to-market: Enables businesses to react
Digital transformation now affects not only faster to market changes and roll out products
business operations but also customer faster than competitors.
engagement, product design, and marketing
8. Improved resource management: Consolidates
strategies.
company resources, reducing overlap between
 COVID-19 Pandemic (2020): This led to
vendors and improving overall efficiency.
accelerated digital transformation globally, hence
pushing remote work, e-commerce, and services 9. Increased profitability: Improves efficiency and
adoption. profitability for companies, with 80% of
BENEFITS OF DIGITALIZATION organizations reporting increased profits after
digital transformation.
Digitalization offers numerous benefits to man, which
includes [9-12], as shown in Figures 3, 4 and 5: 10. Better sustainability: It can help move revenue
streams via improved sustainability by reducing
1. Increased efficiency
waste and promoting more environmentally
 Automates manual tasks, reducing time and effort
friendly practices. By digitizing processes and
required to complete tasks.
reducing the need for paper and other physical
 Streamlines business processes, freeing up
materials, businesses can reduce their impact on
employees to focus on more valuable activities.
the environment and promote sustainable
 It enables quicker turnaround times and faster
practices.
decision-making.
11. Increased accessibility regardless of location.
2. Improved collaboration and communication
 It enables real-time collaboration and 12. Broader access to information and education –
communication among team members. Digital platforms and the internet provide access
 Fosters innovation and collective problem- to a vast repository of knowledge, democratizing
solving. education and enabling individuals to learn and
 Removes friction from document collaboration, develop new skills at their own pace.
allowing multiple users to work together 13. Data-driven insights – This leads to gaining
simultaneously. valuable insights into customer behavior, market
3. Enhanced data management trends, and operational performance that would
 Enables quick access to information, enhancing result to more informed decision-making and
decision-making processes. improved strategies.
 Facilitates timely responses to market changes.

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14. New revenue streams and business models – It innovation, and customer experience [19]. A
opens up new avenues for businesses to create requirement of a digital project twin (or digital twin
and offer innovative products and services, of the project) is the representation of data from
explore new markets, and build stronger customer information systems around the project lifecycle
relationships. management (PLM) with a focus from the formation
15. Improved sustainability – It can contribute to a idea through to the use phase, as shown in Figure 10.
more sustainable future by enabling energy DRAWBACKS OF DIGITALIZATION
efficiency, promoting renewable energy, and Digitalization has several drawbacks that affect
facilitating waste reduction. individuals, organizations, and the society as a whole.
16. Enhances global connectivity and collaboration – Some of the key drawbacks or disadvantages include
Enables businesses and individuals to collaborate [20-23]:
and interact across geographical boundaries, Social and economic drawbacks:
promoting economic growth and cultural  Digital divide: Digitalization can widen the gap
exchange. between developing and developed countries, as
17. Empowerment of individuals and businesses. well as between people with access to technology
and those without, as shown in Figure 11. This
ROLES OF AI, IoT, DIGITAL TWINS AND can lead to unequal opportunities and social
BLOCKCHAIN IN DIGITALIZATION exclusion.
1. Artificial intelligence (AI): Enabler of smart  Job displacement and inequality: Certain jobs can
automation and insights:- be replaced by automation and AI, particularly
AI enhances digitalization by automating tasks, those jobs requiring low to medium skill levels,
enabling predictive analysis, and supporting decision- thereby deepening income inequality and creating
making processes. Its key benefits are in the areas of economic imbalances, as shown in Figure 12.
predictive maintenance in manufacturing and smart  Biased decision-making: In this case, AI
cities, personalized services in e-commerce and algorithms can perpetuate biases, posing serious
healthcare, as well as automated customer support via issues in terms of social justice and equity.
chatbots [13, 14], as shown in Figures 6 and 7.
Environmental and health drawbacks [20, 21]:
2. Internet of Things (IoT): Data backbone of  Environmental deterioration: The production, use,
digitalization:- and disposal of digital technologies can harm the
IoT connects physical devices to the internet, environment, hence contributing to climate
enabling real-time data collection and smarter change and resource depletion.
infrastructure. The key benefits are: real-time  Reduction of physical health: The excessive use
monitoring in agriculture, logistics, and health; of digital technologies can lead to bodily
automation of homes, factories, and urban illnesses, diseases, or malfunction.
infrastructure (smart cities) and; enhanced operational  Increased stress and burnout: Being constantly
efficiency through sensor data [15, 16], as shown in online and the pressure to adapt to innovation can
Figure 8. threaten employees’ psychological and physical
3. Blockchain: Trust and transparency in digital wellbeing.
transactions:- Technological and organizational drawbacks [20-
Blockchain introduces decentralized, tamper-proof 23, 26, 27]:
data storage, crucial for secure and transparent digital  Complexity: Digitalization involves complex
interactions. Some of its key benefits include: secure technologies that require advanced technical
digital identity, and authentication systems; expertise, making it difficult for non-technical
transparent supply chains and logistics and; fraud users to interpret and understand data.
prevention in finance and governance [17, 18], as  Technological infrastructure and
shown in Figure 9. integration/Legacy systems: Digitizing data often
4. Digital twins: requires upgrading legacy systems, which can be
This plays a significant role in digitalization by time-consuming and costly.
enabling businesses to create virtual representations  Overdependence on technology: Digitalization
of physical objects, systems, or processes. This makes us heavily reliant on technology,
technology has various applications across industries, disrupting businesses and causing losses in case
including: predictive maintenance, operational of system failures or cyber attacks, and as well as
efficiency, improved decision-making, enhanced leading to vulnerabilities in critical infrastructure
and systems.

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 Cybersecurity risks and privacy: Digitalization  Collaborate with educational institutions and tech
increases the risk of cyberattacks, data breaches, partners.
and privacy violations, compromising sensitive
5. Financial constraints [36, 37]:
information.
Challenge: High initial costs of digital transformation
OVERCOMING THE CHALLENGES FACING can be a deterrent, especially for SMEs.
DIGITALIZATION
Solution:
As transformative as digitalization may be, it also
 Leverage government subsidies and digitalization
presents several challenges as enumerated above
grants.
across industries. These include among others
 Start with small-scale pilots to demonstrate ROI
technological barriers, cybersecurity risks, resistance
before scaling.
to change, and need for new skills. The key strategies
to overcoming these hurdles are as outlined below: CONCLUSION
Conclusively, AI, IoT, and Blockchain collectively
1. Technological infrastructure and integration
drive digital transformation by automating processes,
[28, 29]:
enhancing data flows, and ensuring secure
Challenge: Many organizations struggle with
interactions. Their synergy leads to smarter, more
outdated IT systems and the complexity of integrating
efficient, and trustworthy systems across sectors like
new digital tools with legacy infrastructure.
healthcare, logistics, finance, education, and
Solution: governance. Overall, digitalization has the potential to
 The adoption of cloud computing and scalable drive significant benefits, but it requires careful
platforms to modernize infrastructure. consideration of the challenges and opportunities it
 Implement agile methodologies to facilitate presents.
phased integration and reduce disruption.
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[36] OECD (2021), “The digital transformation of igitalization+by+wikipedia&udm=2&fbs=AIIjpHx
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[37] Harvard Business Review (2018), “The HsfpWm-fhkdk8j_AuHxNvbZbLBaWAAN4O-nN-
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Figure 5. Big Data

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 International Journal of Trend in Scientific Research and Development @ www.ijtsrd.com eISSN: 2456-6470
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Figure 8. Internet of things

Source:https://www.google.com/search?q=images+
on+IoT+in+digitalization+by+wikipedia&sca_esv=
b732657094e5cdfe&udm=2&biw=1036&bih=539 Figure 10. Digital project twin
&sxsrf=AE3TifPGMd4ahZq0V9Ky0BbeJlq2T6CU Source:https://www.google.com/search?q=images+
w%3A1748053897698&ei=iS8xaKqyKr3n7_UP7d on+digital+twins+in+digitalization+by+wikipedia&
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Figure 9. Government by algorithm

Source:https://www.google.com/search?q=images+
on+digital+twins+in+digitalization+by+wikipedia&
sca_esv=b732657094e5cdfe&udm=2&biw=1036& Figure 11. Global Digital Divide
bih=539&sxsrf=AE3TifNpEufu5Smrry3kT2BE1vS Source:https://www.google.com/search?sca_esv=e8
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@ IJTSRD | Unique Paper ID – IJTSRD81091 | Volume – 9 | Issue – 3 | May-Jun 2025 Page 664
 International Journal of Trend in Scientific Research and Development @ www.ijtsrd.com eISSN: 2456-6470
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Figure 13. Digital literacy

Source:https://www.google.com/search?sca_esv=e8
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Figure 12. Automation
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@ IJTSRD | Unique Paper ID – IJTSRD81091 | Volume – 9 | Issue – 3 | May-Jun 2025 Page 665