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Automation vs. Digitization: What’s the Difference?

Companies hear plenty of noise from technology providers about the benefits
of their various platforms, including the ability to “automate” workflows and
processes.
But often those solutions don’t involve actual automation. Instead, they are
simply digitizing information. And for contractors, builders and operators, the
difference between the two is more than semantics. It can have a real impact
on a company’s efficiencies and return on investment.
But what’s the difference?
The dictionary definition of “digitize” is to “convert pictures or sound into a
digital format that can be processed by a computer.”
That might involve manually entering data into a technology platform or
scanning paper copies of timesheets, drawings and other documents into a
computer, so that the information can move from an analog form to a digital
one.
“Automate,” however, is defined this way: “to convert a process or facility to
a largely automatic operation.”
Artificial intelligence, the Internet of Things and machine learning, among
other technologies, are making automation possible, transforming workplaces
across industries and sectors — from construction to energy and industrials.
With automation, worker time and attendance, for example, can be collected
instantly — automated through IoT or wearables — instead of being keyed
into a mobile device.
There’s no need for data entry or scanning, and that’s why automation offers a
myriad of time-saving opportunities for users. Solutions that simply digitize
information can still require a hefty amount of manpower and time as those
documents and files are created, collected and turned into digital formats.
What makes automation so popular?
Automation comes with plenty of benefits. It can boost productivity, product
quality, data quality and worker safety; lower labor costs; and alleviate issues
related to labor shortages. And it’s only going to get more popular as
companies look for ways to shave costs and become more efficient.
As a December 2019 McKinsey report explains, automation in the
construction industry, for example, could involve robots laying bricks, 3-D

printing of construction components and the streamlining of design, planning
and management procedures.
“The outlook for automation in construction is bright,” the report says. “Overall
the industry will likely improve its productivity, see an increase in wages, and
be better suited to meet the growing demand for infrastructure and real
estate.”
Automation is having similar impacts in oil and gas, especially because of the
growing need to collect data and pull actionable insights from it.

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