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DIGITIZING

Every time you see a shirt with an embroidered company logo or hat with an embroidered sports team emblem, that design was "digitized". Embroidery digitizing is the process of converting existing artwork like a company logo or team emblem into a stitch file that an embroidery machine can sew on a garment.
Before any design can be embroidered, it must be digitized. Digitizing is a complex process that is both art and science.

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VECTORIZATION

Vector graphics are sometimes also referred to as "draw graphics," but they mean the same thing. The technical definition of vector graphics is complicated, but in a nutshell vector files are a type of graphic that uses mathematical algorithms, allowing the image to be scaled or modified without loss of image quality or resolution. These images are easy to resize or rescale and result in a better quality graphic!
When you create an image in Adobe Illustrator (or in Freehand or CorelDRAW), you are creating a vector graphic. However, when you create an image in a program like Adobe Photoshop, you are creating a bitmap graphic, which is not a vectored format. A vector graphic retains its crispness at any magnification, but a bitmap graphic appears jagged when it's enlarged.

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LOGO DESIGN

A Logo is a design symbolizing ones organization. It is a design that is used by an organization for its letterhead, advertising material, and signs as an emblem by which the organization can easily be recognized, also called logotype. Logotype is a graphic representation or symbol of a company name, trademark, abbreviation, etc., often uniquely designed for ready recognition.