Do you know the difference between becoming digitized and becoming digital? The MIT Sloan Digital Transformation defines the difference in between.
Two Different Types Of Digital Transformation
Survival in this time of innovating digital era, companies must thrive in their digital pursuits. However being effective in this regard, requires the proper knowledge of digital transformation.
The MIT Sloan Digital Transformation defined the two types. They’re the following:
- Becoming Digitized: this means integrating digital technology with the business’ primary processes. For example, accounting processes. As well as the invoicing.
- Becoming Digital: moreover, this more concerns the development of a company’s digital platform. So they can better deal with digital offerings.
Similarity
Both digital transformation types rely on the latest digital trends. For instance, all rely on analytics and the cloud. Not to mention AI or artificial intelligence.
Differences
However, both have differences also. For example, becoming digitized more concerns the traditional business methods.
On the other hand, becoming digital involves a thorough change of old rules. So they can make way for the new and latest way of digital thinking.
Let’s take a closer look at each one of them.
Becoming Digitized
Moreover, becoming digitized involves maintaining basic business processes. For instance, invoicing and accounting. Not to mention that this also involves the delivery of goods and services.
- But today, services can now be integrated with SaaS. Or the Software-as-a-Service. Because many find it to help deliver more efficient and accurate processes.
- For example, SaaS processes define more efficient accounting and logistical processes.
Becoming Digital
On the other hand, becoming digital involves the development of a digital platform. This is the part where more efficiency is integrated.
- A mixture of different software can be integrated. The purpose is to effectively connect with partners and customers.
- However, this is different from the digital platform used by known companies today. Such as Amazon and Facebook.
- Digital offerings are not consistent. Since this will be subject to change. For instance, more technology and innovation is available. Most importantly, the better the company knows what the customers highly value. The better they can develop their offerings on digital.
- Good implementation of these results to speed. Not to mention a better innovation pace.
Leadership & Teamwork
In every business venture, nothing beats the power of teamwork. However, being effective in processes is highly influenced by seniorities.
But, being successful in digital transformation is a mixture of empowered teams. Moreover, these team members are also in thirst for new ideas. Thus, the concept should always be like the mind of a startup.
Combined all together, a good leader and all out support from the team, defines success.
Distribution Of Teams
Responsibilities should therefore be set. This allows for each team to work effectively and avoid redundancy. Also, each team should be well trained for their assigned task.
Operational Influence
Because turning digital is a major change, thus setting metrics is a good idea. Also, try analyzing customers’ satisfaction rates. This way, you can test how going digital influenced your sales.
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