Digital Transformation or Digital Modernization: Which is Right for You

If you have always thought that digital transformation and digital modernization mean the same, you’ll be surprised to know that it isn’t so. No doubt, people often use these terms interchangeably, but they refer to different things. So, what is the difference between them? To be precise, digital transformation refers to introducing a radical change in a business’s operation. Whereas, digital modernization refers to upgrading the technology a business relies on. This is the basic distinction between both processes. In this blog, we’ll explore in-depth the factors that distinguish digital transformation and digital modernization.

In light of this awareness, you can determine which of these processes you need to implement for the growth of your business. 

Digital Modernization and Digital Transformation: Where Does the Difference Lie?

How To Choose Between Digital Transformation and Digital Modernization

It all comes down to the individual requirements and aims of your business. Implementing digital modernization strategies is the right choice if you are struggling with obsolete technologies and systems. You can update all your systems to advanced versions or switch to cutting-edge platforms for your business’s growth. Improved productivity, reduction in time required for various processes, and streamlined workflows are some advantages of executing digital modernization strategies. 

Now, coming to digital transformation, it is best to follow the approach if you aspire to match strides with the latest technologies available in the market. You can revamp your company’s core operations through the implementation of novel technologies. Automation, augmented reality, cloud computing, and artificial intelligence are some incredible technologies that form an integral part of digital transformation. People are more inclined toward businesses that stay abreast of the latest digital trends. Hence, this approach makes your business more valuable to the customers. 

So, ultimately, what you choose between digital transformation and digital modernization depends entirely on what you are aiming for. If you aspire to make your existing processes better, you can go for digital modernization strategies. However, if you hold a long-term vision to swirl along with the most advanced technologies and emerge as a leading player in your domain, digital transformation is a better approach to follow. 

Some Questions to Beacon You Toward the Right Decision-Making 

If you are still feeling confused about what to choose between digital transformation and digital modernization, asking appropriate questions can help clarify the mistake. 

5 questions to ask before you opt for digital transformation

1. What are the major goals you aspire to accomplish and what problems do you intend to solve? 

Oftentimes we have random multiple goals in our minds. Hence, before coming to a decision, it is imperative for you to list your goals in proper order. Be mindful of what comes before the other. Once you establish a clear set of goals, you can easily determine whether you should go for digital transformation or not. 

2. Do you need to implement digital modernization before the digital transformation?

It is imperative to analyze the current state of technology in your business before deciding on one of the two. If the systems are obsolete, it is better to execute digital modernization strategies first. This is because updating the existing systems to the most advanced stage makes the digital transformation easier.

3. Is the company ready for such a radical change? 

Digital transformation changes your organization’s core infrastructure. It is a big step and before taking it, it is crucial to ensure that your organization is ready for taking the leap. The availability of finances, time, and other resources are some factors you shouldn’t overlook while contemplating this question.

4. What challenges or issues may your business face during and after digital transformation?

In business, it is important to take calculated risks. Hence, before you embark on the journey of digital transformation, you should carefully inspect the challenges or issues your company may face during and after the process. In light of this awareness, you can develop strategies to effectively mitigate the whiplashes of any challenges you come across.

5. How will you measure the success of your digital transformation endeavors?

Every business endeavor is centered around the results. If you invest your time, energy, and financial resources in digital transformation, it is crucial to determine the results it will produce over time. You can do so by establishing certain metrics that align with your goals. 

5 questions to ask before you opt for digital modernization?

1.  Are your technological systems obsolete? 

This is an important consideration to make before implementing digital modernization strategies. The state of the current technological infrastructure will help you determine if digital modernization is required.

2. What issues do you face with your existing technological systems?

Outdated technological systems introduce issues time and again. Unexpected bugs, crashes, and other troubles may affect the productivity and profitability of your business. The type of problems you face can help you determine whether you need to upgrade existing systems or switch to a whole new setup.

3. What are the potential benefits of upgrading your organization’s existing systems?

If you plan to execute digital modernization strategies, you should think about the potential benefits you’ll reap. In case digital modernization doesn’t seem to render incredible results, you may start thinking about digital transformation. 

4. What are the expected risks of digital modernization?

Before executing a digital modernization strategy, you should ponder over the expected risks and how you’ll mitigate them. With this awareness, you can ensure the maximum effectiveness of your endeavors. If you start undertaking the journey of digital modernization without proper preparation, you may end up being frustrated by the troubles that come your way.

5. Can digital modernization meet your company’s future technological requirements? 

When deciding whether to implement digital modernization or not, you should consider your organization’s future technological requirements. If digital modernization would suffice, you can go for it. 

Let’s Wrap Up 

Digital modernization and digital transformation both have their individual purpose. If digital modernization strategies involve upgrading the existing technologies utilized in your organization, digital transformation strategies revamp your technological architecture. Depending upon your organization's requirements you can decide which one to opt for. If you find it challenging to decide, our eminent technological team at LN Webworks can simplify things for you. So, why wait? Contact us today for a consultation.