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Digital Transformation vs. Digital Modernization

Adopt or improve? At this point, many companies wonder what their best path is in terms of digitizing their processes, that is why in this article you will learn the difference between Digital Transformation and Modernization, two very similar concepts but radically opposite from a strategic point of view.

Adopt or improve? At this point, many companies wonder what their best path is in terms of digitizing their processes, that is why in this article you will learn the difference between Digital Transformation and Modernization, two very similar concepts but radically opposite from a strategic point of view.

Organizations are invariably concerned about their permanence in the market, and they all know (or, at least, they must do) that having or relying on cutting-edge technology is their only viable path in this constantly changing scenario. At the same time, they know that the digitization of processes means greater profitability and better positioning. These are enough arguments to leave behind traditional systems and start creating or distributing fully digital products and services.

It is normal that when we talk about digitization, themes such as the acquisition of new digital solutions, the creation of software and applications as well as the adoption of advanced devices immediately come to mind. This is the reason why it is important to distinguish the difference between Digital Transformation and Modernization, two processes that offer radically different results due to their particularities. Let's demystify them one by one:

Digital Transformation: new technologies and redefinition of operations

It is very common to find the word Transformation in the technological and business field, and maybe that is the reason why it has lost its real relevance.

The Digital Transformation finds its sustenance in the adoption of new technologies to disruptively change the processes of an organization, all in the search for the optimization of previously established resources and procedures. This concept is characterized by responding quickly to technological developments and challenges, and can even anticipate them.

Likewise, this procedure seeks to replace operations that were carried out in a traditional way, imposing new technological tools and prioritizing business models based on new approaches that use technological innovation as a basis to generate profitability and positioning inherently to digital advances.

There are several obstacles on the path of Digital Transformation. The first one is carrying out this migration in an agile and safe way, since it is not only about technological acquisition. The continuity of the company must be taken into account during the process, as well as the involvement of specialists in the field to implement each initiative successfully and not run the risk of lowering the productivity of the collaborators who are compromised during its implementation.

It is worth mentioning that this process stands out in the strategic complexity that it requires to be carried out, that is, considering the 4Ps that stand for people, processes, policies and platforms to generate an orderly and positive impact.

Digital Modernization: the other edge of technological optimization

Modernization is a symbol of optimization and, in the technological field, it means much more than just improving what a company already uses in terms of digital solutions.

Even more, Digital Modernization became a viable opportunity for all companies during the pandemic, since it made evident that many organizations did not have technology powerful enough to respond to the new challenges that the latest digital wave brought with it.

In other words, this process involves taking the technologies that a company already has as a starting point to improve its performance, scalability and opportunities to enhance its productivity.

One of the most important features of Digital Modernization is its execution since, unlike Digital Transformation, it represents gradual improvement without the need of changing the company's operating model, so the risk of decreasing productivity is considerably reduced.

To carry out a viable Digital Modernization, it is necessary to take existing technologies as a basis to make them as efficient as possible and generate added value through simple initiatives.

A clear example of this process is the updates of the applications that suppose a better application response and a better user experience without investing in new infrastructure. Simple, isn't it?

Digital Transformation and Digital Modernization: a winning combination

Have you realized? Both concepts converge when it comes to the improvement and digitization of processes in an organization so, far from being opposite, they find a perfect point of convergence and can be a winning combination.

Both share the benefits of having the right technology to respond quickly to new needs, which is a great window of opportunity when used properly.

Although it is a fact that both involve radically different processes and methodologies, they share a list of features that the organization must consider in order to be carried out successfully:

  • Internal cultural preparation.
  • Methodology designed in accordance with the complexity of the initiative.
  • Correct change management to find points of improvement along the way.
  • Analysis of collected data and constant optimization.
  • Improvement of processes and procedures.

Imagine starting to use both processes in favor of your company and begin to enjoy the benefits that technological tools can offer you.

If you are looking to evolve the way your company operates and strengthen it with advanced technologies such as cloud services and storage, artificial intelligence and software platforms, don't wait any longer and leave it in the hands of the experts.

At Icalia Labs we are experts in drawing digital roadmaps to improve the processes and procedures of our clients so that they can stand out in the market and increase their competitiveness, either by optimizing their technological resources or by implementing more than functional technology. We provide the principles and best tools to help envision, prototype, and deliver great products that combine strategy, ease of use, and user-friendly interactions.

Based on agile methodologies and the best digital talent available, we are ready for your technology to stop being conventional. We want to expand its possibilities so that it can be your best ally in meeting your objectives and expectations, either with an innovation strategy or of technological modernization.

If you are ready to take the next step, contact us and let us help you change the course of your operations definitively and safely.

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