To digitalize, or not to digitalize, that is the question... (examples + practical questions)

Let me introduce the second part to you, as I promised. In this part, I will try to answer how to make the right choice for your company. For this purpose, I will show you a few confirmed cases to help you look at this situation from different angles. Also, I'll give you some questions that deserve your attention.

1?? What goals does a company seek to achieve through digitalization?

Every business call (in the context of digitalization) has its cost, and the engineering team's job is to determine that cost so that the business can assess the project's feasibility. I always say that it's expensive to develop software. That's why when small companies turn to us and say, "we want to make a website like Amazon," we start sorting things out, breaking down the task and picking out things that are necessary. It does not mean that the company needs all the modules and that they will boost revenues, increase loyalty, and so on.

2?? Is the customer's audience (and the customer itself) ready for technological innovations?

There may be a chance that the target audience might not appreciate the innovation. You offered a new feature, but nobody uses it. So, whose fault is that? I have already answered this question here (https://www.dhirubhai.net/posts/artemkalachev_where-does-a-software-development-outsourcing-activity-6981218533229613056-1sdK?utm_source=share&utm_medium=member_desktop).

Fortunately, there is also the opposite scenario, when a digital add-on significantly improves the product, which was awesome anyway.

Example (from the Hospitality field):

What is the secret behind the success of the Marriott Bonvoy loyalty program (ranked among the top 3 best loyalty programs in the hotel industry)? Maybe it's all about the hotel's IT infrastructure. Or, perhaps, the thing is in its software products (website and mobile app) are both highly functional and user-friendly. No, the technologies just contribute to a strong, sophisticated, convenient motivation system and make it even better.

3?? Does the innovation fit the current market conditions?

Example (from the Healthcare field):

I once had a chance to work with a French company that developed great solutions for Public Hospitals. With their product, they wanted to get rid of paper media at all levels. The infrastructure in hospitals in France was ready for this process and the work progressed slowly but surely. However, when I was explaining this IT solution to my fellow doctors from another country, they said that it was impossible to implement this product at that moment because of the system-level problems (for example, there were no standardized processes in the various hospitals). So, this kind of solution couldn't be effectively integrated due to the existing problems.

4?? Are there any clear specifics of the industry to keep in mind?

Example (from the Banking field):

On the one hand, it is very cool to digitalize banks - there are no limits, they are well monetized, and IT solutions are always wanted. On the other hand, banks are very regulated institutions with lots of rules and massive bureaucracy. Sometimes, even when it is technically possible to implement a convenient feature, management either block this initiative or puts it on hold. This is one of the reasons why a lot of today's banking solutions are not perfect.

?? What do we end up with?

All these examples and questions will not give you clear guidance on how much you need to invest in digitalization. But at least we once again realized that this process should be approached with a cool head after you have weighed all the pros and cons. I hope you managed to find some similarities with your product and draw some conclusions. Feel free to dm me if you have more questions, or if you need technical advice. I would be happy to share my expertise with you.