Digitisation History in a Nutshell

Although it may appear to be a modern phenomenon, the conversion of analog or physical procedures and records into digital form has been ongoing for several decades. The inception of computers in the 1950s marked the beginning of digitisation. Subsequently, the unrelenting progress of digitisation has converted almost everything into computer-compatible 1s and 0s, transforming the way we work, communicate, shop, bank, and even enjoy our leisure time.

Some important milestones in the history of digitisation

1956 – The introduction of magnetic disks and random access data by IBM revolutionized the business world with the launch of the 305 RAMAC and the 650 RAMAC (Random Access Memory Accounting). United Airlines’ reservation system was the first to adopt this technology, which included the 350 Disk Storage Unit weighing one ton and providing a storage capacity of 5 megabytes – roughly equivalent to a Mitsubishi Mirage and a single 4×3 inch HD image file.

IBM’s press release at the time proclaimed that digitisation would enable “business transactions to be completely processed right after they occur,” highlighting the speed and efficiency of this transformative technology that still holds true today.

1960 – In 1960, American Airlines unveiled the Sabre flight-reservation system, processing an impressive 84,000 telephone calls daily and storing a vast amount of information, including reservations, flight schedules, and seat inventory, totaling 807 megabytes. This move was in response to IBM’s launch of the 305 RAMAC and the 650 RAMAC, showing that American Airlines was equally invested in embracing new technology and competing with their industry peers.

1968 – In the adoption of modern technology, U.S. libraries began utilising Machine Readable Cataloging (MARC) records. The Library of Congress conducted the inaugural MARC Pilot Project, which aimed to convert cataloging data for roughly 16,000 titles into machine-readable magnetic tapes, facilitating more efficient distribution. By June of 1968, approximately 50,000 MARC records had been disseminated for use in generating book catalogs, catalog cards, and other library resources.

1968 – Although “cashpoint” machines (early versions of ATMs) had been introduced in London almost a decade earlier, the progress of digital technology enabled Swedish savings banks to commence testing a networked cashpoint in 1968. By connecting with the bank’s computers and digitized files, users were able to enjoy a more comprehensive experience, allowing them to check their account balances and withdraw various amounts of money without needing to interact with a human teller.

1971 – Well before the widespread use of eReaders and eBooks, Project Gutenberg was established with the objective of providing copyright-free works to the public in electronic form. The project’s founder initiated this digitization trend by entering the text of the U.S. Declaration of Independence into a computer mainframe at the University of Illinois, which has progressed with several significant advancements to this day.

1979 – FedEx introduced its Customers, Operations, and Services Master Online System (COSMOS), which digitized the management of individuals, packages, vehicles, and weather circumstances in real-time, enabling unprecedented updates on the status of deliveries. This move revolutionized the delivery industry, making it possible to efficiently track shipments and improve customer satisfaction.

1984 – In a first, the US Census Bureau inquired about respondents’ computer usage at home. This survey revealed that 8% of all U.S. households owned a personal computer at the time. However, by 2016, the number of US households reporting computer ownership (including smartphones) had surged to 89%, with 81% of them having a broadband internet connection. This demonstrates the tremendous growth of technology adoption in American households over the years.

1991 – Finland introduced the first 2G cellular network, which employed digital signals rather than analog transmissions to communicate between mobile phones and cell towers. This innovation resulted in a surge in system capacity and introduced cutting-edge data services such as text messaging, which eventually became one of the most popular forms of communication in the following decades.

1994 – Pizza Hut received possibly the first-ever online order in the history of ecommerce for a large pizza with pepperoni, mushroom, and extra cheese toppings.

2003 – In a historic event, electronic payments overtook cash and checks as the most favored payment method by US consumers, primarily due to the increasing acceptance of debit cards as a payment option.

2004 – The initial version of the DocuScan enterprise scanners was launched by XBP Europe, designed for digitising documents and paper checks. The DocuScan series gradually progressed into the more advanced IntelliScan scanners, incorporating optical character recognition technology and advanced data extraction software. At present, the IntelliScan is among the world’s most rapid scanning platforms available.

2012 – Nearly 20 years after that large pizza was sold via the Internet, annual ecommerce sales topped $1 trillion worldwide for the first time.

2014 – The number of Internet users worldwide reached 3 billion.

2020 – The alliance between Mastercard and Exela resulted in the introduction of a pioneering Request-to-Pay solution, which was registered with Pay.UK. This cutting-edge technology enables secure, synchronized messaging services for billers and payers, thus enhancing communication and flexibility.

Digitisation is the future

The trend of Digital Transformation has been one of the most significant and enduring developments of the modern era, and it continues to evolve at a rapid pace. The latest advancements in OCR, ICR, and machine learning technology have made it easier and faster than ever before to transform paper documents into fully digital assets with a high degree of precision. Real-time payment options are poised to revolutionise peer-to-peer transactions, while numerous other breakthroughs are driving the expansion of our digital capabilities.

Digitisation is already transforming the way businesses operate and the future of business will be heavily influenced by this trend. XBP Europe from the onset has been at the forefront of digital transformation, digitsation and technology updated. With the aim to offer best solutions to our customers we’ll continue developing smart technology and services to enable business automation.