Digitization - what is it?

Digitization is more than just transferring data into a system—it is a complete transformation of how businesses, institutions, and citizens operate. It involves not only technology, but also procedures, habits, and infrastructure. Unlike digitization, which focuses on data, digitization transforms the entire operating environment.

Thanks to it, many matters can be handled online, although some processes—such as company registration—still require in-person attendance. At the same time, the importance of digital tools in business is growing: from automation and e-signatures to electronic document workflows. Digitization is not a one-time event—it is a process that requires constant adaptation and informed decisions at both the organizational and operational levels.

What is digitization?

We live in a digital world. It has been taking shape right before our eyes, and it continues to evolve. An increasing number of everyday activities are becoming digitized or can only be carried out in the digital world. In our daily lives, we don’t realize how this is changing our lives. We need to remind ourselves of what things were like 10 or 20 years ago.

What is digitization? The PWN Polish Language Dictionary provides the following definition of digitization: “the dissemination and popularization of digital technology and the widespread implementation of electronic infrastructure.”

More specifically, this involves expanding access to high-speed internet. Now that access is available, it becomes necessary for government agencies, businesses, and other institutions to make various online services available. The next step is to enhance the public’s digital literacy so that citizens know how to use these services.

We usually equate the concept of digitization with the concept of digitalization. Meanwhile, however, digitizing and digitizing are different processes. It can be said that digitization can be a prelude to the process of digitization. For digitization means transforming analog resources into digital ones. In the case of a book, it means scanning it and then processing the resulting file in such a way that it is readable as text, and not just as an image.

Digitization of offices

Digitization contributes to saving time. Such basic digitization has been with us for almost 30 years. Companies and government offices put up their websites with the advent of the Internet. Nothing could be done through them, because it was just a bulletin board. Many sites still operate this way today. But it's still something. You can check the office hours, address, phone number of the corresponding cell phone. You are less likely to get bounced out the door.

True digitalization began in Poland over a decade ago. Certain services started to be made available online. You no longer have to run to the government office with every piece of paperwork. You can submit a document and receive a response without leaving your home.

Around the turn of the century, attempts were made to introduce electronic signatures. It was complicated, and at first no one understood how it worked. At the same time, local government offices stopped issuing the traditional, green ID cards on-site. They produced the document in digital form and sent it via data links to the Ministry of the Interior and Administration’s Document Personalization Center in Warsaw. The finished physical ID card was returned to the local government office and issued to the citizen. That’s how it works to this day.

A few years ago, there was a breakthrough, and you could apply for an ID card without leaving home. You could submit the application with a photo online. Unfortunately, we’ve taken a step backward in this regard. Starting November 7, you must go to the office in person, fill out a paper application, and submit a photo. This is because a new biometric element has been added to the ID card. It must include fingerprints. These are stored on a chip in digital form.

Fingerprints are stored on the same chip that has for some time been capable of storing a citizen’s digital signature. This feature of the ID card is not mandatory. With this e-ID card, you can handle official business online without leaving home. To verify your identity, in addition to a computer, you’ll need a cell phone with an NFC module or an NFC reader. It’s worth noting that an e-ID and an ID stored on your cell phone are not the same thing. With an e-ID, you should be able to handle matters with the central government and the Social Insurance Institution (ZUS).

Unfortunately, not all government agencies are equipped to handle citizens’ affairs online. Often, we only find this out when we try to contact them digitally. They also have different requirements when it comes to authentication.

Government agencies still have to produce and store many documents in paper form, but digitization nonetheless yields significant savings in terms of paper, fuel, and time—and, as a result, benefits the environment.

Setting up businesses still remains a complicated process

Digitalization is making it easier to set up a business, but it is still a complicated process in Poland, especially for someone doing it for the first time.

Digitalization and the establishment of a sole proprietorship

It is now possible to start a sole proprietorship entirely online. However, this requires some preliminary preparation for the digital environment. To start a business online, you must have one of the following tools:

• ID card with a digital layer,
• a bank account at a bank that allows for the authorization of official transactions,
• trusted profile.

To obtain any of these tools, you need to meet with an official in person. But once you have them, you can handle everything online

Digitization and the establishment of a limited liability company.

You cannot set up a limited liability company online. Most of the steps can be completed digitally, but one step requires a face-to-face meeting with another person.

This refers to the notarial deed establishing the company. All company members must physically sign it in the presence of a notary. Without this, the company cannot be formed.

Digitization of the company

By the way, a few words about digitizing an existing business. First, you need to map out all the processes that are to be digitized and ask yourself what benefits this will bring.
When deciding to digitize, large corporations usually take a comprehensive approach and implement programs covering all aspects of the company’s operations.
Owners of smaller businesses typically opt to digitize specific processes. They also expect a quick return on their investment.

When done properly, digitization should lead to cost savings and speed up certain processes. However, it’s important to remember that this isn’t a one-time effort. Once the changes are implemented, you need to check how the processes are working and make adjustments if necessary. And then check again, and so on…