Technology Modernisation vs Business Transformation
Business leaders sometimes fail to understand the interrelationship between ‘Technology Modernisation’ and ‘Business Transformation’. In this blog I will share my experience while leading a couple of large transformation programs from the past.
Technology Modernisation: Technology Modernisation is the process of upgrading or adopting new business-enabling technologies (e.g. cloud services; Robotics Process and Automation, RPA; DevOps; Extended Reality, XR; AI, etc.) in order to improve existing business processes, achieve new efficiencies, and reduce costs.
Business Transformation: Business transformation is the holistic adoption of change across people, processes, and technology — a rapid, high-impact revamp of the way in which an organisation operates, supports its customers, and creates a new line of business. If Technology Modernisation is described as a steady march, business transformation is a leap forward.
Technology Modernisation can’t happen without some degree of business transformation, which often tech leaders find difficult to apprehend.
Business Leaders can consider three different paths as described in the diagram above:
Technology Modernisation: if the organisation would like to modernise or upgrade its technology estate only, then it will require less business transformation. This is a very rare scenario.
Technology Modernisation and Application Migration: if the organisation would like to modernise or upgrade its technology estate and migrate its old application into the new stack, then it will require a minimum degree of business transformation and business engagement.
New line of business: if the organisation would like to develop a new line of business, then it will require complete business transformation, with the help of Technology Modernisation.
Organisations must constantly innovate and undergo transformations in order to stay relevant, however, poorly structured renovations can be a detriment. From my experience, technology modernasation and business transformations must work hand in hand for effective transformation.
