IN 2021, $ 1.5 trillion was spent globally on digital transformation, and investment in this area is expected to reach $ 6.8 trillion by the end of 2023. 70% of companies have a digital strategy or are currently working on one, while 87% of leaders believe that digital transformation will disrupt their industry. Although digital transformation is the most popular business strategy of the moment, which promises to increase customer efficiency and experience, it has had a success rate of less than 30%, according to a Zippia report published in 2022.

Digital transformation vs. technological transformation

According to Simona Pavelescu, CEO of htss, a company specializing in the development of business software products for health industry, after the COVID pandemic, more and more companies have realized that a certain transformation is needed in the digital area, one that takes into consideration the maturity of the business first, and only later the industry in which it operates. Some companies call it digital transformation, while others label it as IT transformation. In the following lines we wil find out if these two are similar or completely different things.

„I recently read an article that defined Digital Transformation as being “software empowered, and customer driven,” and I truly resonate with the idea. In other terms, digital transformation is a strategic direction / change / transformation of business (must be enabled/supported from the top) and stresses the idea that customer preferences and behaviors must have a big say regarding the organization’s technology. Although the term „digital” makes us think first of technology, in reality, this transformation refers to a change of processes, business model and culture. Technology is the second layer, a facilitator of the elements mentioned above. In other words, if technological transformation is an upgrade of the infrastructure, digital transformation is an umbrella term for structural changes throughout the company,” Simona Pavelescu points out.  

That is why technological transformation on its own is not enough but must be integrated into a broader process of digital transformation. No matter how well the technological transformation is done, this is just a short-term remedy that does not solve the cause of the problem, providing a perception of digital change that is not sustainable and cannot provide long-term results. This is one of the reasons why the success rate of digital transformation is so low.

According to the CEO of htss, digital transformation and technological transformation (IT) are two sides of the same coin. When IT transformation priorities are aligned with customer priorities and the whole company embraces change, aligning business processes and models, while adopting a digital mentality, we have the premises for a successful evolution in the digital journey of the company.

„Developing a digital transformation strategy for 2030 can be an excellent catalyst for identifying digital pillars and short, medium and long-term priorities. A technological transformation can be started just before the finalization of the digital transformation strategy, precisely to build the foundation and align current resources in order to successfully cover future business demand. The main challenge remains the point of intersection – when and how the two initiatives will align to the same priorities, recognized and accepted by the entire organization. The speed will be determined by the organization’s appetite to lead change; if it is too fast, the resistance can undermine the purpose of the transformation, and if it is too slow, the 2030 strategy will not be achieved. The key to meeting the challenge is to get management (at all levels, from top to bottom) on board and eager to drive transformation and at the same time maintain consistent operational results. The main question is: Is the whole organization ready to accept this challenge?” – asks Simona Pavelescu.

As a general conclusion – digital transformation cannot meet its objectives without a technological transformation and vice versa. The starting point of the two may be different. However, in order to be successful, the alignment of the two, in terms of priorities and objectives, must be strategically planned. Thus, IT will be an integral part of the digital strategy that will lead technology-based innovation, allowing the entire organization to meet customer needs, according to the mutually agreed digital strategy.

About Simona Pavelescu:

Simona Pavelescu is CEO of High-Tech Systems & Software (htss), a company specializing in the development of business software products, with over 1,000 customers in 11 countries. The main goal she has for htss is for it to become the most important digitalization partner in the health industry at European level.

With over 19 years of experience in the IT industry, Simona Pavelescu has a proven track record in building and developing businesses, while also being passionate about understanding human behavior and identifying business opportunities that provide the expected results.