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article imageWhich is best: Digital transformation or digital optimization?

By Tim Sandle     Jun 20, 2018 in Business
For many companies struggling with digital transformation, it could be that digital optimization is a better strategy. This ties in with existing platforms and human experience.
While there are many digital transformation success stories, wave after wave of transformative business technology doesn't meet expectations leading businesses to go back to the drawing board. There are many reasons why digital transformation might fail, aside from picking the wrong technology or implementing it at an inopportune time. Digital transform can fail because of lack of CEO sponsorship, talent deficiency, resistance to change and so on. The lesson is that no managers should view digital — or any other major technological innovation — as their sure salvation.
There are alternatives to full-on digital transformation and one that is proving popular with some companies is digital optimization. Digital optimization means utilizing technology in combination with existing systems, platforms and human experience. At the same time optimization means using available data as a starting point for later digital transformation campaigns.
READ MORE: Business Process Management is central to digital transformation
As an example of how digital optimization might trump digital transformation, Tomas Salfischberger, co-founder of Relay42, provides an example to the website PerfomanceIn relating to the world of marketing. Here Salfischberger writes: "Let’s say that a brand wants to optimize their spend management efforts, and so they go ahead and invest a huge amount of money into the necessary AI technology without thinking twice."
Now here's the 'but' — Salfischberger says: "However, without having the knowledge of how to tweak and teach the machine learning algorithms to achieve the desired goal, the AI technology will be of minimal use at all."
Whereas taking the optimization path means: "Assessing existing knowledge and identifying the true value of technology should always come before diving into a purchase."
Some marketing departments, and firms, are focusing more on digital optimization. This means making good use of video, audio, and photography, as well as written content, so that a brand or product is recognized by search engines. This includes targeting and personalizing content externally and using automation and data internally to make content decisions.
More about digital optimization, digital transformation, optimization