Digital axis

Digital transformation

Q: Are digital transformation and digitalisation the same thing?

Not exactly. In the OECD’s distinction, digitisation is converting analogue information into machine-readable form; digitalisation is changing how work is done through the connected use of digital technology and data. Digital transformation is the broader concept covering the full economic and social effects of both.

Q: How do I apply for KOSGEB digital-transformation support?

Applications are made through KOSGEB’s e-Services / SME Information System (KBS) after signing in via e-Devlet. Core conditions: the business must operate in the C–Manufacturing sector by NACE code, be registered and active in the KOSGEB database, and hold an approved, up-to-date KOSGEB Business Declaration. You complete the application form, approve the undertaking and upload the attachments; the application calendar is generally flexible. Because programme terms and budgets are updated periodically, confirm the current state at kosgeb.gov.tr .

What digital transformation is and how it differs from digitalisation. The EU Digital Decade 2030 targets, the shift from Industry 4.0 to 5.0, the OECD framework and SME support in Türkiye.

Updated: 13 June 2026 The figures and legal references on this page are based on official/primary sources.

What is digital transformation?

Digital transformation is often invoked but rarely defined clearly. The OECD’s Going Digital framework distinguishes two concepts: digitisation is converting analogue information into machine-readable form (scanning an invoice); digitalisation is changing the activity itself through the connected use of digital technology and data (turning that invoice into data that flows automatically between systems).

Digital transformation is the umbrella concept covering the full economic and social effects of both. The key nuance: transformation starts not with technology but with purpose. Buying software is not digital transformation; redesigning processes, decisions and data is.

The EU framework: Europe’s digital future

The European Commission’s communication “Shaping Europe’s Digital Future” (COM(2020) 67, 19 February 2020) rests the EU digital strategy on three axes: technology that works for people, a fair and competitive digital economy, and an open, democratic and sustainable society. That third axis is among the first formal signals that digital and green must be thought together.

The European Digital Decade: 2030 targets

The strategy is tied to concrete targets by the Digital Decade Policy Programme (Decision (EU) 2022/2481; adopted 14 December 2022, in force 8 January 2023). It sets measurable 2030 targets across four axes:

Skills

80% of adults (16-74) with basic digital skills; 20 million ICT specialists.

Infrastructure

Gigabit connectivity for all households and equivalent 5G coverage in populated areas.

Business

75% of enterprises using cloud / AI / big data; 90% of SMEs reaching basic digital intensity.

Public services

100% of key public services online; e-health access and an EU digital identity (eID).

Industry 4.0: connectivity and efficiency

On the industrial side, the last decade was defined by Industry 4.0. The term emerged in Germany, around the Plattform Industrie 4.0: proposed in December 2010 and announced publicly ahead of the Hannover Fair on 1 April 2011. The core idea is real-time communication through the smart networking of machines and processes — flexible, efficient production via cyber-physical systems, IoT and data flow.

Industry 5.0: beyond efficiency

The European Commission (DG RTD) defines Industry 5.0 as a vision that complements Industry 4.0 (report 5 January 2021; vision document 10 January 2022). Where 4.0 asks “how efficient,” 5.0 asks “for whom and within which limits.” It rests on three pillars:

Sustainability

Keeping production within planetary boundaries; circular and low-carbon.

Human-centricity

Using technology for workers’ well-being and skills, not to replace them.

Resilience

Flexible production that withstands crises, supply shocks and volatility.

These three pillars join digital transformation to the green transition — that is, Industry 5.0 is the concrete industrial form of the twin transition.

Industry 4.0 and 5.0: a brief comparison

	Industry 4.0	Industry 5.0
Focus	Efficiency and automation	Value, well-being and limits
Driver	Connectivity, IoT, data	Sustainability + human + resilience
Role of people	Operator within the process	Centre, collaborating with technology
Environment	An indirect outcome	An explicit design goal

OECD Going Digital: seven dimensions

Reducing digital transformation to a single technology is a common mistake. The OECD’s Going Digital framework offers a holistic view, assessing policy across seven dimensions: access, use, innovation, jobs, society, trust and market openness. The practical lesson for an organisation: infrastructure (access) alone is not enough; unless adoption (use), skills (jobs) and trust (cybersecurity, data protection) advance together, transformation stalls.

Digital transformation in Türkiye

In Türkiye, digital transformation is not abstract; there are concrete support mechanisms for SMEs. The KOSGEB SME Digital Transformation Support Programme offers manufacturing SMEs an interest-free loan of TRY 1–20 million; one accepted application format is the DDX digital-maturity report from TÜBİTAK TÜSSİDE.

The Ministry of Industry and Technology’s Model Factory network demonstrates lean + digital transformation in practice and operates across 12 provinces (Adana, Ankara, Bursa, Denizli, Eskişehir, Gaziantep, İzmir, Kayseri, Kocaeli, Konya, Mersin, Samsun). Read alongside green-transition support, these programmes form a manufacturer’s twin-transition roadmap in Türkiye.

İkiz Eksen’s role on the digital axis

İkiz Eksen treats digital transformation not as an end in itself but as a measurable discipline. Our slogan is the method: first measure — gather reliable field data through IoT, sensors and ERP integration; then transform — digitalise processes, raise decision quality with AI and analytics, and work from a single source of truth.

These two steps connect the digital axis to Industry 5.0’s three pillars (sustainability, human-centricity, resilience) and close the loop with sustain. See our methodology or the reasons why to start now.

Frequently asked questions

Are digital transformation and digitalisation the same thing?

Not exactly. In the OECD’s distinction, digitisation is converting analogue information into machine-readable form; digitalisation is changing how work is done through the connected use of digital technology and data. Digital transformation is the broader concept covering the full economic and social effects of both.

What is the difference between Industry 4.0 and Industry 5.0?

Industry 4.0 (Plattform Industrie 4.0; the term dates from 2010–2011) focuses on the smart networking of machines and processes and on efficiency. The European Commission’s Industry 5.0 vision complements it with three pillars: sustainability, human-centricity and resilience. In short, 5.0 adds “for whom and within which limits” to the question of “how efficient.”

Do the EU Digital Decade targets bind companies in Türkiye?

The targets (Decision (EU) 2022/2481) bind EU member states, not Türkiye directly. But because the EU absorbs roughly 40% of Türkiye’s exports, those targets indirectly shape supplier expectations, digital-maturity standards and market conditions.

What support can SMEs use for digital transformation in Türkiye?

For manufacturing SMEs, the KOSGEB SME Digital Transformation Support Programme offers an interest-free loan of TRY 1–20 million; one accepted application format is the DDX digital-maturity report from TÜBİTAK TÜSSİDE. The Ministry of Industry and Technology’s Model Factory network also provides lean + digital transformation practice across 12 provinces.

How do I apply for KOSGEB digital-transformation support?

Applications are made through KOSGEB’s e-Services / SME Information System (KBS) after signing in via e-Devlet. Core conditions: the business must operate in the C–Manufacturing sector by NACE code, be registered and active in the KOSGEB database, and hold an approved, up-to-date KOSGEB Business Declaration. You complete the application form, approve the undertaking and upload the attachments; the application calendar is generally flexible. Because programme terms and budgets are updated periodically, confirm the current state at kosgeb.gov.tr.

How does digital transformation combine with the green transition?

Together they form the “twin transition.” Digital enables green through three functions: data generation, advanced analytics and operational action (EEA). İkiz Eksen runs both axes together — first measure, then transform, then sustain.

I run a small company — where should I start with digital transformation?

You start not with technology but by measuring where you stand. We first clarify your digital maturity and the processes that cost the most time and money through an analysis, then move with a small, measurable pilot (a single process or line). The DDX digital-maturity report required for a KOSGEB application aligns with this analysis. You begin with a single step, not a large programme.

How much does digital transformation cost?

There is no fixed price; it depends on scope, your existing systems and the goal. Our approach is to keep cost contained with a small pilot and scale only after the value is proven. Manufacturing SMEs can also greatly ease the investment with KOSGEB’s Digital Transformation support (an interest-free loan of TRY 1–20 million). A concrete figure emerges, for your situation, during discovery.

Why does digital transformation fail at most companies?

The most common reasons are not technology but people: the absence of a clear strategy, focusing only on the tool without changing the process, and employee resistance. Success comes from treating transformation not as a one-off software purchase but as continuous, measured, managed work supported by training. That is why we open every engagement with analysis and advisory.

I’m a manufacturer — how do AI and automation help my business?

The most concrete uses in manufacturing are demand forecasting, predictive maintenance (acting before a failure), quality control and energy optimisation. According to the International Energy Agency, widespread AI use in industry carries a savings potential of about 3% of global final energy by 2035. The benefit does not arrive on its own; the model’s output must be tied to a real action.

Sources

Looking for where to start your digital or green transformation?

Starting with İkiz Eksen is simple: we first measure where you stand and build your roadmap together. You begin with a single step, not a large programme.

Get in touch Explore services