Navigating Digital Transformation: Balancing Innovation and Legacy Systems

Article ## Balancing Innovation and Transformation, Evolution vs Revolution

What if I informed you that the desire for digital transformation varies significantly between different businesses?

Let me illustrate this with a simple argument. Fast-paced enterprises boasting higher revenue streams t to be more resilient towards shouldering the costs and risks associated with a digital transformation drive. This is because not only does adoption of new technology involve the incorporation of cutting-edge solutions, but it also necessitates substantial changes in operational cultures and processes.

However, some legacy businesses still rely on existing software systems that provide sufficient value without requiring major overhauls. Consequently, these entities often resist embracing emerging technologies out of fear of flure or potential ruin from significant investments.

Now, you might question how risk-averse organizations could overcome this apprehension towards the need for digital transformation? In today's digital economy characterized by disruption, every new development widens the business agility gap between less digitally evolved companies and those that lead in innovation.

The distinction between digital transformation and digital innovation often lies in perception. The fear surrounding transformation is mnly due to the misconception of it meaning a complete overhaul. However, with strategic and calculated moves towards embracing emerging technologies without abandoning what has worked so well for businesses, there's potential for significant growth.

Let us delve into some effective tools that can propel businesses forward through digital innovation.

Cloud as Your Lifeline:

Many organizations still cling to older technologies like COBOL and mnframes which they perceive as a safer bet. While these systems might suffice for minimal risk and cost-effectiveness, there's an inherent need to upgrade them for the modern cloud environment.

The strategy of combining traditional IT solutions with new technologies using tools such as Micro Focus and Modernization Maturitycan help businesses seamlessly transition into contner-frily, cloud-rich environments. By leveraging this approach, organizations can optimize their performance while bridging old and new technology landscapes.

Value Stream Management:

For a CTO to ensure clients' demands for new functionalities and seamless user experiences are met on time, collaboration between digital value streams and business value streams is essential. An advanced strategy in value stream management accelerates innovation across organizational processes by pushing boundaries of what's possible with tech advancements.

Reinventing ITOps with the - Workforce:

At the core of every business lies the pursuit to maximize return on investment ROI while continuously seeking cost-saving opportunities related to technology. Recognizing that process automation is indispensable for this reason cannot be understated. Automating routine tasks allows robots to mimic actions efficiently and adapt swiftly to changes.

Not only does robotic process automation RPA enable time and cost savings, but it also frees up resources from mundane tasksallowing them to focus on more pressing concerns while accelerating the scope for innovation.

Digital Innovation as a Technological eavor:

Despite significant investments in transformation drives that have led to unsatisfactory outcomes, CTOs often struggle with translating strategy into execution. Difficulties in quantifying ROI coupled with less rounds of vor testing reveal the absence of a one-size-fits-all solution when it comes to technology.

Hence, businesses must first assess their capacity for change before embarking on digital transformation journeys. This evaluation helps determine whether an organization possesses the necessary cultural, technological, and fundamental skillsets to innovate through digital means.

Forbes Technology Council

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This article is reproduced from: https://www.forbes.com/councils/forbestechcouncil/2022/11/10/the-tug-of-war-between-innovation-and-transformation-evolution-and-revolution/

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