IT modernization and digital transformation are two important initiatives happening today in every enterprise. Both will result in lower costs and help IT make a more effective impact on business. The ultimate goals align, but the processes greatly differ; knowing and understanding that difference is crucial for the success of either initiative.
IT modernization works primarily toward transitioning to a hybrid IT environment that prepares the business for future advancements, while lowering costs and improving efficiency. Most often, middle management can drive modernization on their own without the mandate from the CEO or other members of the C-Suite, since much of the process involves optimizing existing systems or transitioning workloads to a cloud. The first priority of IT modernization is to reduce costs, followed by improving IT’s agility. Some of the changes you can expect from modernization are standardizing existing apps, simplifying and digitizing workflows, and mandating security and compliance.
Digital transformation, on the other hand, tends to work in the opposite direction. When tackling this initiative, the C-Suite should determine the desired business impact and what needs to take place to achieve that impact. While IT modernization is a slow and steady process, digital transformation needs to happen much faster, as it’s typically an end-to-end approach driven by industry competitiveness. The business impact is top priority, with implementation speed being a secondary concern, and the cost of such a transformation is usually of least concern.
The two initiatives work contrary to one another; IT modernization is a slow, bottom-up approach, while digital transformation is a fast, top-down approach. Conflating the two is a risky mistake that threatens to undermine your ultimate goals.
Before beginning either initiative, create a digital tech strategy with an experienced digital solutions provider such as INFRASI. INFRASI takes a personalized approach to your business’s needs, taking every detail into consideration before offering a comprehensive strategy. Contact us today to start your project.