Balancing Digital Optimization and Digital Transformation may help improve overall Customer Experience

September 20, 2021

Digital Optimization is often mistaken for Digital Transformation

Organizations adopt digital transformation or optimization to add value to their customers. They work on different premises based on the innovation strategy of an organization. Digital transformation drives business success in ever evolving and changing business landscape. Digital optimization helps businesses to stay relevant in the constantly changing world of business and customer expectation.

Digital optimization is often mistaken for digital transformation. Therefore, it is important to understand what these two means.

Digital Transformation

Digital transformation fundamentally changes the operation of a business by integrating digital technology into all areas of a business. It is focused to create new digital business models to offer desired user experience and business value.

Digital Optimization

Digital optimization essentially improves an organization’s internal operational efficiency with the use of digital technology. This does not involve inventing your business through a digital platform.

The Basic Difference

To transform digitally, organizations use technology to create new products, services, revenue, and new avenues for businesses. When companies opt for digitized optimization, it means replacement of physical tools and processes with digital tools and processes.

CX remains to be the main driver for both digital transformation and optimization. However, they entail different business approaches. In this blog, we will explore the differences through how and when businesses opt for either of the two and the various steps involving it.

Drivers of Digital Transformation and Digital Optimization

Customer expectation management is the main driver for digital transformation. The rising competition and need for customer insight, customer data management, and the need for speed are driving organizations to transform their business through transforming digitally.

The main drivers for optimization are:

Therefore, while business optimization is to improve current business processes, digital transformation is to go beyond the basics.  How would a company choose between either of the two? The first step is to assess the digital maturity of the business.

Maturity / Capability Assessment

Before going for digital transformation companies need to have a holistic view of the organization’s current digital state and assess the capabilities needed to advance its digital agenda. Digital maturity assessment or digital capability assessment helps businesses measure where they stand in terms of the use of digital technologies. Based on the findings, they strategize, set goals, create strategy and road maps, and prioritize the areas of transformation.

To optimize, organizations adopt new technology to benefit the business. They save time, improve processes, or avoid day-to-day tasks, email responses, sorting sales lead, etc. to keep the competitive edge. However, if they want to be ahead of competition only digital optimization will not work.

Tools & Technology
Digital Transformation

Digital Transformation involves building a digital strategy to identify and implement tools that will help companies to meet their goals: Some essential digital enablement are:

    1. Collaborative platforms
    2. Communication platforms
    3. New Generation Intranet Platforms
    4. Customer Relationship Management (CRM) platforms
    5. Customer Communications Management (CCM) platforms
    6. Cloud enablement platforms
    7. Project Management platforms
    8. Recruitment Management platforms
    9. Digital Accounting platforms
    10. Payroll Management platforms
Tools for Optimization are:

Digital transformation is a cultural change of the entire organization in terms of how a business works. The organization needs to develop some key skills or digital literacy among its teams. These skills include, data and digital security, digital marketing, data analysis, DevOps or software development that focuses on collaboration, rather than working in isolation; mobility management; machine learning.

For optimization your team will need training on the tools and technologies that will be implemented. The solution provider will arrange for the training as per contractual agreement.

To summarize, if you are trying to strengthen your existing business and become customer-centric, go for optimization. It is pocket-friendly as it is tailor-made suit an organization. Digital transformation helps expand your business for your specific customer base and establish a strong business model. Digital transformation means thinking far beyond the obvious B2C relationship and finding new ways to reach out to customers.

A good solution provider not only guides you to assess your digital maturity or identify the areas they need to optimize, but it also helps establish the process for digital innovation.

Digital Business People has the expertise and resources to help organizations implement digital transformation to expand as well as help them optimize to strengthen their business.

Interested to discuss more please visit us at or write to us at

About Ashish Bhalla

Ashish has almost 30 years of industry experience in a wide range of business solutions primarily focusing on end-to-end customer experience management. He is the founder and CEO of Digital Business People (DBP), an Omni-channel customer experience management company headquartered in Singapore with its development and delivery centers in India.

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