Digitization vs digitalization: Why the German word “Digitalisierung” is often mistranslated

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German companies often talk about the need for “Digitalisierung”, but sometimes their meaning gets lost in translation. That’s because in English, we have two words for this German term – digitization and digitalization – and even English native speakers don’t always know the difference between them.

When you create marketing content around the concept of Digitalisierung in English, you might be using the wrong word, and this can completely change your message.

In this article, you will learn the difference between digitization and digitalization, why the German word Digitalisierung is often translated incorrectly, how to choose the right word, and how they relate to digital transformation.

Why German companies get confused by ‘Digitalisierung’

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I can’t explain why Germany only has one word for both digitization and digitalization, but I’ve checked multiple German-English dictionaries and they all agree. No wonder a lot of organizations are getting this wrong! If you are using an online translation tool, it won’t distinguish between the two words, and won’t—unlike a human English native speaker—the AI tool won’t ask you to clarify.

If you use these terms in German, make sure your English translator knows which one you mean (if it’s not clear from the context).

But what is the difference between these two words, where does the term “digital transformation” fit in, and how are these words used in real life?

Let’s take a closer look.

The difference between digitization and digitalization – and where does digital transformation come in?

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Digitization

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Digitalization

Digital Transformation

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Preserving the past

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Converting analog data to a digital format

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Improving the present

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Using digital technologies to improve business processes

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Creating the future

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Reshaping the entire business with technology

A lot of people – even native English speakers – use these terms interchangeably. It’s not a surprise that Germans are confused. Even IT companies who advertise the benefits of “Digitalisierung” often get these muddled up.

Digitization	Converting analog data to a digital format
Digitalization	Using digital technologies to adjust, improve, and automate existing business processes
Digital Transformation	Using technology to reshape an organization’s business model, processes, and company culture

To make it easier for you to understand the difference, I’ll use an example from my life – or rather, from the life of my father. Let’s start with Digitization – digitization.

Digitization – Preserving the past

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My dad was a compositor for a local newspaper—that’s a Schriftsetzer for the German readers. The newspaper industry is one that has been completely transformed over the past 50 years, and that began with digitization.

Digitization is the process of converting data and information from an analog format to a digital one. This can be as simple as transferring your music collection from vinyl to CDs to an online service or scanning your important documents.

Or, in the case of the newspaper where my father worked, digitizing historical newspaper articles, like this one from 1845, on the visit of Queen Victoria to Würzburg. This process didn’t change the work being done at the newspaper company, or the company itself. It merely preserved old newspaper articles for the future.

For most organizations, digitization started decades ago—and “the majority of our technical memory has been in digital format since the early 2000s”, as this research paper notes. If you are making in your organization, you are probably in the process of digitalization.

Digitalization – Improving the present

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My dad worked during the era of ‘hot metal printing.’ The switch from letterpress to offset printing, as described in detail in this video, didn’t just digitize the content, it digitalized the process. In this case, digitalization completely changed that part of the business.

Digitalization is “the process of moving to a digital business,” according to the Gartner Glossary, while a Brookings report focuses more on how it affects people, stating “the acquisition of digital skills has now become a prerequisite for individual, industry, and regional success.”

We use digital technology and our digitized data to change operations, business models, and customer experiences—to create new value for companies and their employees, partners, and customers.

While researching this post, I came across this fascinating interview with a man who worked with my dad in the caseroom at DC Thomson. He says he’ll never again “hear the clacking, thrumming sound of a linotype machine or smell that mix of ink, boiling lead and petrol,” due to the move to cleaner, quieter, and less labor-intensive offset printing.

The process of digitizing newspaper content preserved the information for future generations, but it probably didn’t have a huge effect on the company workforce. Digitalizing the printing process, however, brought immense changes. It’s not clear just how many jobs were lost due to the move from hot metal to offset printing, as this was the start of a much larger shift in the media industry, but in one extreme case – the Wapping Dispute – News International went from 6,800 staff to just 670 for the same output.

Digital transformation – Creating the future

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While digitalization completely transformed the actual printing process, the real digital transformation of the newspaper industry was still a few years away.

In the 1990s, with the advent of the internet, newspapers began publishing online, but traditional publishers had competition from innovative new websites, news aggregation platforms, and blogs—not to mention social media. With so much content freely available online, news publishers struggled to create new revenue streams and monetization concepts. As the New York Times Innovation Report, 2014 noted, “… with the endless upheaval in technology, reader habits, and the entire business model, The Times needs to pursue smart new strategies for growing our audience.”

Digital transformation goes far beyond the technical changes of digitalization. Accenture defines digital transformation as “the process by which companies embed technologies across their businesses to drive fundamental change.” The organization benefits from “increased efficiency, greater business agility and, ultimately, the unlocking of new value for employees, customers and shareholders.”

If you think of digitalization as being individual projects that change specific areas of the business, digital transformation is an over-arching strategy that affects all business areas, changing the business model, operations, processes, and company culture.

What did that mean for the newspaper and media industry? Digital transformation for my father’s company meant not just publishing news online, but embracing new technology, and “growing revenue streams in digital, B2B, and events—and building a profitable subscription-based business“. In recent years, the company has expanded its digital storytelling, using video, audio, live blogging, and live events to connect with the local communities it serves.

You can see – digital transformation goes way beyond digitization of content, or digitalization of processes. That’s why digital transformation projects are so important to companies, and can make such a dramatic difference in their future success.

Conclusion – Why it is important that German companies choose the right word

In international communication, language precision isn’t just a ‘nice to have’. It ensures that your marketing content is clear, professional, and trustworthy. By using the correct term, your international customers understand immediately what you mean, and they feel that you are speaking their language. That builds trust and strengthens your brand.

In contrast, using incorrect terminology can lead to misunderstandings. Customers might get the impression that your company isn’t competent in communicating in business English. Or they might be confused about the benefits of your products and services.

When you communicate in English, your language should be just as precise as the technology you’re describing.

Are you talking about innovation? Then say it right – get in touch with me, and together, we’ll ensure your message doesn’t get lost in translation.

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By the way, if you are wondering what the difference between digitization and digitisation or digitalization and digitalisation is – it’s very simple.

As with many other similar words, in American English, these words are spelled with a z, and in British English, they are spelled with an s.

I normally write in British English, but for this post, I’ve used the American English term as it’s the one used most often. For consistency, I’ve also used American English punctuation—such as the em dash—where I’d normally use the British version.

You can read more about the difference between American English and British English—and which your company should choose—here.

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This post is also available in: Deutsch

Digitization vs digitalization: Why the German word “Digitalisierung” is often mistranslated

Why German companies get confused by ‘Digitalisierung’

The difference between digitization and digitalization – and where does digital transformation come in?

Digitization – Preserving the past

Digitalization – Improving the present

Digital transformation – Creating the future

Conclusion – Why it is important that German companies choose the right word

Würzburg

lynn@englishtextservices.de

© Lynn Nothegger, 2025