Digital renovation starts the digital transformation
Marinca KasiskeDigital restructuring is the first step towards digital transformation in a company.
It's not the size of the first step that matters, but the direction it takes. For small and medium-sized enterprises (SMEs) in particular, we believe it's crucial to use limited resources effectively by prioritizing steps to maximize benefits. Digital transformation builds upon existing systems and is the ideal starting point for a continuous improvement process of current workflows â enabling a successful digital transformation for the company.
Look at the different focus of each step:
Digital renovation
Restructuring isn't just about money; it's also about rethinking business models and realigning strategy. It's about reviewing internal processes and reducing costs. The goal is to stabilize the company.
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 existing systems to restructure the company, reduce costs, decrease 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 goal of our digital restructuring is to put the company back on a healthy and sustainable path and to secure its market position .
Recommended reading
A secure market position is the best starting point for a digital transformation.
Digital Transformation
To be truly successful, companies must go beyond restructuring and strive for transformation. Transformation is like a complete metamorphosis. It's about fundamentally changing the company to meet evolving market conditions.
In our view, digital transformation refers to a comprehensive change within a company that goes beyond mere digital restructuring. Transformation is not simply about repairing or stabilizing, but about fundamentally changing the company to meet evolving market conditions, technological advancements, or other challenges.
The transformation itself can affect various aspects of the company, such as business strategy, organizational structure, corporate culture, workflows, and technology. The goal of digital transformation is to future-proof the company and ensure long-term competitiveness .
Digital renovation and digital transformation are therefore two sides of the same coin.
What does that mean for your digitalization efforts?
In short, it depends on the goal of your digitization project and therefore also on your starting point or the level of digitization of your company. Set an operational goal for acute problems or pursue a strategic goal for long-term changes .
Restructuring aims operationally to financially stabilize a company and strengthen its market position. Transformation, on the other hand, involves a strategic adaptation of the entire business model to new market conditions and challenges.
You can find more information about the level of digitalization in SMEs below.
Recommended reading
Your company needs a secure local AI solution.
CXO Partners specializes in truly secure artificial intelligence for everyday office use: We process all data entirely on a local machine using open-source models, ensuring genuine data sovereignty. We would be happy to discuss this further and how we can support your company in a personal consultation.
Questions? We're happy to help! Call us at +43 1 997 28 34 or use our contact form below.
Together we will find the solution that has the greatest impact on your digital process.
