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  • Timo Römer

Digital Transformation vs. Digital Expansion

In the digital age, the advent of new technologies has radically changed traditional business beliefs. Businesses have only one way forward, and that is to keep pace with changes. Otherwise, they will be left out of the competition and disappear completely.

Today, almost all organizations are in a phase of change as they seek to find their way into the digital world and continue to grow in highly competitive markets. The COVID-19 pandemic also pushed organisations further into digitalization. One way to keep up with the current changes is digital transformation.

Digital transformation is business transformation.

This short sentence is the key to understanding digital transformation.

Digital transformation is the process of using digital technology to modify existing and creating new processes, this oftentimes also requires changes in culture and customer experiences to meet changing business and market requirements.

Digital transformation can lead to a dramatic change in the performance of an organization centered on transformational technologies, not gradual improvement. According to George Westerman, a leading researcher at MIT, digital transformation is about turning the organization's silkworm into a butterfly, not just a faster silkworm.

The digital environment is not the same as the online and electronic environment. It is a combination of online and offline resources in order to create an engaging experience for external and internal stakeholders.

Tektit Consulting does not do digital transformation, instead we are focussing on digital expansion.

Digital Expansion is creating new revenue streams and building market differentiation with digital services and products.

Digital Expansion means expanding the business through the opportunities created by digitalization. The result will be that technology (IT) will be removed from the role of business support and be shifted to a core role of a business.

In short: We work with companies to expand their core business with digital products and to implement their own digital product strategy. Core is the important word - a lot of companies, especially the hidden champions, have built up extensive expertise. Together with the companies we are trying to answer these questions: How can this expertise be used in the context of digital products? How can digital products help ensure a continued business success?

Digital expansion is not a “one-off” endeavor, but an ongoing adventure that is never finished. Success is driven by a compelling vision, strong leadership and a constant assessment of the situation and adjustment of activities and changes. In other words, what drives organizational success in this area is leadership, not just attention to technology development and a focus on digitization.

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