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Discover Dx: Digital Transformation vs. Digital Optimization

Digital transformation is the “in” buzzword in the telecom, mobility, and information technology management industry, but what does it really mean? Digital transformation is strategically defined as the integration of digital technology into all areas of business, fundamentally changing how you operate and deliver value to customers. What a lot of organizations typically fail to realize is that this mechanism of change is a huge one–and changes just about every area of your company. The speed in which you implement digital transformation–or Dx–is up to you, but there are few areas you should pay attention to before you engage in a massive Dx strategic plan.

Why does Dx matter? 

Digital transformation matters because it’s a matter of survival. It’s no longer a choice. As Howard King, a contributor for The Guardian recently penned, “Businesses don’t transform by choice because it is expensive and risky. Businesses go through transformation when they have failed to evolve.” Natural evolutionary processes for digital transformation are the reasons why Dx matters most. It also matters because your customers expect more and more digital interactions as your competitors and their lives transform into a fully immersed digital culture.

Additionally, a recent 2018 McKinsey data survey tellingly express than more than 80% of CIOs have said their organizations have made digital transformation efforts in the last five years. That’s an astounding number of professionals changing their workforce culture and their customer experiences.

More than 80% of CIOs said their organizations have made digital transformation efforts in the last five years. Click To Tweet

What is digital optimization? 

Digital optimization is the milder implementation of Dx. Compared to transformation, it may seem like a tweak rather a reinvention. Businesses optimize by zeroing in on a particular area that they could perfect, such as productivity, collaboration or enhancement of their current digital infrastructure. Here, technology is the enabler working around the systems, processes and human resources that already exist in an organization.

An optimization project can also be a pilot you use to test the waters before plunging into a full-fledged transformation. Frequently, optimization projects can serve as health markers for a company’s readiness in terms of project governance, internal processes, and infrastructure.

So which should I choose? 

Depending on your size, you have to choose whether or not you can afford for a Dx initiative to fail or succeed. Clear, measurable metrics, including KPIs, can help determine your company’s investigation into Dx. If you’re not looking to make radical shifts in your organization, a digital optimization may be the right choice. As we continue through this blog series, Discover Dx, we will provide insights on organizations that have undergone both digital transformations and digital optimizations.

AOTMP enables organizations to succeed in their digital transformation and digital optimization plans. Contact us to learn more.