INTRO
Every organization uses some form of technology nowadays and its use can bring different values to a business. Depending on the goal, technology is used and introduced in a business in various fashions. A company can create more value by improving a process to use resources more efficiently through digitalization. For example through e-invoices. At the same time, a business can reap the benefits of technology by changing what is done and how through digital transformation. For instance, predicting consumer needs. Let’s look at these two ways of using technology in a company more thoroughly.
Digital transformation or digitalization, how to choose value through a goal-driven approach to technology
Digitalization and digital transformation both refer to using technology in your business. However, they have different goals:
- Digitalization aims to bring processes online, and if that is your business goal, then you need digitalization. This means setting your goal, collecting the necessary documentation and mapping the process, and setting up the technology required to carry out processes digitally.
- The goal of digital transformation is to change what you do and how you do it. It means, for example, sending an email to habitual customers a week before they are used to booking an appointment or making an order, asking them if they need the usual quantity of product or if they want to reserve an appointment at their preferred time. Gathering all this information can be an additional asset for your organization, allowing you to personalize services and predict customer needs.
Although some steps, such as defining as-is and to-be states, would be the same for both, it is essential to remember that many will differ. For example, digital transformation will require business model alignment with your IT strategy as well as cultural change.
Conclusion
The use of technology in a business should be goal-driven. Depending on this, different technologies and approaches to its use yield different values. Efficient use of resources is mainly achieved through digitalization, which heavily relies on process improvement. However, creating better value for the customer may require changing your processes; this is what digital transformation consists of. Think about your goal: do you want to save money and time on paper and improve your business process cost-efficiency, or do you want to change your service or process because it does not deliver what your customers want? The answer to this question will lead you to choose the right approach to using technology in your business