Digital redevelopment as the first step
Marinca KasiskeIt is not important how big the first step is, but in which direction it goes.
For us, digital redevelopment and digital transformation are two steps to transform a company. Especially for small and medium-sized businesses (SMBs), we believe it is crucial to use limited resources effectively by putting the steps in the right order to achieve the greatest benefit.
Here are the basic differences between the two steps:
Digital renovation
A restructuring is not just about money, but also about rethinking business models and realigning strategy. It's about reviewing internal processes and reducing costs. The goal is to make the company stabilize.
Digital recovery typically refers to restoring or stabilizing a company that is in difficult financial or operational condition. Our focus is to restructure the company, reduce costs, reduce technical debt and restore profitability.
Restructuring measures can also include a revision of business models, a realignment of the strategy and a review of internal processes. The aim of our digital restructuring is to get the company back on a healthy and sustainable course and to secure its market position.
Digital transformation can then be tackled from a secure market position.
Digital transformation
To be truly successful, companies must go beyond restructuring and aim for transformation. A transformation is like a complete metamorphosis. It's about fundamentally changing the company to meet changing market conditions.
Digital restructuring refers to the restoration or stabilization of a company that is in a difficult financial or operational situation. The focus is on using the existing systems to restructure the company, reduce costs, reduce technical debt and restore profitability.
Restructuring measures can also include a revision of business models, a realignment of strategy and a review of internal processes. The aim of our digital restructuring is to put the company back on a healthy and sustainable course and to secure its market position.
Digital Transformation
To be truly successful, companies need to go beyond remediation and strive for transformation. A transformation is like a complete metamorphosis. It's about fundamentally changing the business to meet changing market conditions.
In our view, digital transformation refers to a comprehensive transformation of a company that goes beyond pure digital restructuring. Transformation isn't just about repairing or stabilizing, it's about fundamentally transforming the business to meet changing market conditions, technological advancements, or other challenges.
Transformation itself can affect various aspects of the organization, such as business strategy, organizational structure, company culture, workflows, and technology. The goal of digital transformation is to make the company fit for the future and to ensure long-term competitiveness.
Digital renovation and digital transformation are therefore two sides of the same coin.
What does this mean for your digitalization?
In short, it depends on the goal of your digitization project and thus also on your starting position or the degree of digitalization of your company. Set an operational goal for acute issues or pursue a strategic goal for long-term change.
Operationally, restructuring aims to stabilize a company financially and consolidate its position in the market. Transformation, on the other hand, means strategically adapting the entire business model to new market conditions and challenges.
You can read more about the level of digitalization of SMBs below.
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