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Management
Transformation vs Improvement
One of the frequent and important discussions in the field of digital transformation is the difference between “transformation” and “improvement”.
This is a question that has affected the majority of projects in this field, and in some cases, ignoring the difference between the two, creates wrong expectations for organizational and external stakeholders.
Gartner(2019) clearly defines the difference between the two.
Before stating the definitions, it is necessary to pay attention to the followings:
- The difference between transformation and improvement does not mean superiority of one over the other; Rather, knowing the nature of these two different entities will be reflected in the expected results. If you are engaged in digital improvement, you should logically not waite for the achievements of digital transformation.
- There is no clear line between these two concepts; Improvement to transformation is a spectrum that should be strategically positioned depending on the maturity and capacities of the organization.
Digital transformation is achieved through digital improvement.
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To express this, Gartner has expressed these definitions from a hypothetical CEO, as a leader of digital transformation/improvement:
- (Improvement) Our promise to shareholders is a dramatic increase in organizational productivity.
Several units in the organization are responsible for improvement and optimization to make this (improvement) enabled by technology. - (Transformation) We basically recreated our business model: we went from the production of conventional cars to the production of self-driving cars, and along with that, we have established a strategic partnership with Lyft (Internet taxi service) so that every customer, at any time And the place can use our machines with the help of an application
The difference between these two concepts in this example is quite clear and shows the audience what phenomenon we are dealing with when we talk about transformation. It is also evident that one is not superior to the other and that both are necessary. It can be claimed that the first strategic decision of organizations in the digital era will be a smart choice between “transformation” and “improvement” according to the maturity and capabilities of the organization.
In other words, the path of transformation for many organizations will pass through improvement.