TORONTO, 12. 7. 2019

What Every Evolving Business Needs

The Ideologies of Digitalization and Digital Transformation


Throughout the years Digital was a term used to describe the enhancements of products and services through technological capabilities. However, in coincidence with the movement of an agile business, Digital has evolved into distinct branches of methodologies regarded as Digitalization and Digital Transformation, resulting in a Digital Business. A Digital Business can be simplified by emphasizing the importance of business designs, created by merging Digital with the physicalities of our day to day. It is the ability for enterprises to incorporate Digital into their business strategies to develop a detailed framework in a way that will deliver results with substantial value to support their core operations. This movement is made possible when an organization completely restructures its business model, undergoing a Digital Transformation.
An example of a Digital Business is the adoption and integration of technological capabilities in a company’s product or a service’s user experience offering, to improve various parts areas in a company such as CRM (Customer Relationship Management). This is done by internalizing the utilization of Digital within an organization and its employees through various technical proficiencies and applying them when designing the overall framework and business model. For a Digital Business to run successfully, its leaders are responsible for providing a unique perspective and applying a solid innovative approach based on their acquired technical knowledge and skills when developing new strategies and arriving at pertinent decisions.

Digitalization vs Digital Transformation

Digitalization and Digital Transformation were once considered buzzwords, dangled in front of CIOs in hopes for an excitable response towards a new idea. Now, more and more enterprises are adopting these Digital practices by transitioning away from traditional and conventional ways of facilitating business operations towards an improved and innovative strategic direction.
Gartner describes Digitalization as, “The use of digital technologies to change a business model and provide new revenue and value-producing opportunities; it is the process of moving to a digital business.” In other words, Digitalization can be considered a practice which moves an organization towards becoming a Digital Business by leveraging digital technology to transform business models and create strategic objectives to attain targeted goals. The primary objective of a business upon adopting Digitalization is the ability to capture value after a continuous series of growth and improvement in processes and operational activities as well as reliable resources. In applying this practice, companies can effectively expect an increase in both the quantity and quality of generated revenue streams.
Digital Transformation is adopted by businesses to help them evolve at an equal or faster rate than their competitors without the risk of falling behind. While Digitalization enables them to strategize and attain sustainability through targeted initiatives and value generating capabilities, Digital Transformation accelerates the pace of Digital adoption by overcoming challenges and solving problems using newer approaches. Business models are becoming more complex and require executive leaders to review and adjust their strategies to various business climates. That is why organizations are now understanding the real value of undergoing a Digital Transformation by streamlining processes and adopting analytics to assist in prioritizing their needs.

How are they important?

Contrary to the general consensus that Digitalization and Digital Transformation are heavily based on applying new technologies to push companies forward, the real importance and advantages of these two practices surround their abilities to ignite change within a business. Many organizations face the challenge of being able to rapidly reinvent their business models ahead of their competition. In order for companies to respond to evolutions in their industries, their employees must have a unified understanding of how to prepare and revolutionize their business strategies with a proper Digital framework and ample resources to support the change. Digitalization and Digital Transformation are the practices, which allow them to effectively make this happen.
Let Aroa be your guide through your organization’s Digital Transformation journey and leverage the right strategies and resources to accelerate your decision making.