Hardly any industry or company today can escape the effects of digital change on its own business model. Many established companies have already been overtaken by the disruptive effects of new, digital business models.
To compete in this new environment, those established companies that did not fully embrace information technology as a core business element from the start will learn to redesign their business processes and technology stacks to match the responsiveness and speed of digitally native companies. You, therefore, need a software strategy for digital transformation. Companies need software upgrades from time to time as they need to edit images for their clients.
Standard and individual software is equally important
A significant part of digitization, with the aim of improving existing business processes in terms of efficiency and effectiveness, takes place through the use of modern standard software. Individual software plays a role in particular when it comes to customer-facing and the creation of new digital services and products in which user or customer experience and their unique selling point play a central role.
Ultimately, it’s about tapping new revenue streams with the digital services or products offered and expanding or transforming the company’s offering in the direction of the software. The role of individual software in the context of digital transformation becomes clear when you think of digital startups. They usually do not use standard software available on the market to create innovative solutions for their customers, but instead, develop completely new digital products and thus partially understand the market mechanics or change disruptively.
The same applies in this context to established companies that want to take advantage of the opportunities of digital transformation through new digital services and products based on new technologies.
The role of software in the context of digitization and digital transformation
Digitization: In connection with digitization, it is essentially about optimizing the existing processes of the company in its existing business model. It is in the direction of effectiveness and efficiency through the use of modern software and thereby gaining competitive advantages. Depending on the specific individual case, standard software is often used here.
Digital transformation: With digital transformation, existing processes, including the company’s business model, are put to the test and supplemented or replaced by completely new digital products and services. This can lead to a complete change in the business model. This is often accompanied by a change in the organizational model. Digital transformation is therefore much more extensive and means the implementation of new skills in the organization. This enables the creation of new digital services and products in the long term and is not done by handling an IT project.