Digital modernization and digital transformation both have their purposes in organizations, and it’s important not to confuse the two.
Ambitious organizations recognize that “going digital” can help them be smarter, faster and bolder. Implementing digital technology will either enable them to surpass their competitors … or ensure they don’t get left behind.
The question is how much of a digital strategy is your firm willing to embrace? Is your goal mainly to enhance operations and organizational efficiency … or are you willing to radically change every facet of your organization? Truly adopting a digital strategy at your firm will profoundly challenge and alter the way people think, work, and interact.
Here’s how I differentiate between modernization and transformation in the digital space:
Digital modernization is the practice of upgrading or adopting new technology systems, platforms and software solutions to meet the needs of today’s organizations. It is often undertaken by the CIO and will drive some tangential benefits to the organization, including more uptime, faster fixes, increased response times, improved end-user experience, etc.
However, digital modernization is largely undertaken to make the operations and infrastructure of the organization itself better off in the long-run. This includes benefits like reduced headcount. It can also translate into less reliance on legacy systems that are expensive to run, hard to maintain, and almost impossible to find employees to support.
Digital transformation requires viewing the business through a holistic lens that factors in all variables. It’s what we call the 4Ps, and includes People, Process, Policy, and Platform. It involves developing a new set of core values that thrive on change. Numerous studies and implementations have shown that culture change – such as adopting new processes, new ways of working, and new ways of interacting with customers – is essential for digital transformation to be successful.
Successful implementations of digital transformation also require the development of a strategic roadmap. For the greatest impact, the roadmap must be aligned to your overall corporate goals to grow revenue. At PureFacts, we help firms do both digital modernization and digital transformation. We’ve found that not all organizations need to do digital transformation. Sometimes, organizations just need a bit of modernization to get them to where they want or need to be on the digital scale.
As such, we’ve created an assessment tool that helps organizations understand where they stand on the “Digital Maturity Model”. If you’d like to find out more about our “Digital Maturity Model Assessment Tool”, or want to discuss your firm’s digital goals, please contact me directly at Lawrence.firstname.lastname@example.org.
PureFacts provides Custom Digital Solutions and Consulting for the financial services industry. We turn digital disruption into a growth opportunity for your firm. We develop total custom software solutions to improve your digital platforms, enhance communications and provide enterprise-wide integration. Our consulting services help firms uncover solutions to significant business challenges. Ask us how we can help you accelerate innovation, optimize your operations and engage your customers.