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Blog Post
August 30, 2023

Digital Innovation vs. Digital Transformation

How to define them, and what are their roles in reshaping the business landscape?

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Maria Barcelos

mendix 10 1 year aniniversary best features

Table of contents

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What is digital innovation?
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And what about digital transformation?
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What is the difference between the two?
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So, where to start?
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And what is the role of low-code?

In today’s business world (increasingly tech-driven), digital innovation stands proudly at the forefront. Combining cutting-edge technologies, inventive software architecture, and fresh approaches is changing and reshaping the traditional IT landscape.

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Within this context, digital transformation is a concept that also comes into play, and while they are intrinsically related, there may be some confusion between the two terms.

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Let us guide you through the definitions of digital innovation and digital transformation, and how businesses combine both to get the optimal value out of them.

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What is digital innovation?

Digital innovation uses new and cutting-edge technologies to optimize processes, provide better services, or even create a new business model.

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It involves leveraging innovative approaches to solve challenges, improve efficiency, and create better user experiences, influencing a company's competitiveness.

Digital innovation is made possible by implementing new initiatives such as advanced technologies, artificial intelligence, chatbots, big data analytics, and wearable devices. You can see it being put to practice in situations like AI-powered solutions in healthcare for better diagnosing patients and app-developing solutions for improved customer experience.

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And what about digital transformation?

Digital transformation integrates digital technologies and practices across an organization, optimizes its operations, and delivers value to its stakeholders.

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Digital innovation can be a part of digital transformation but is not the only element involved in it because it considers not only technology but also the human elements of a business, alongside the company’s portfolio, its marketing strategies, and even how a business manages its customer service.

Companies embark on a digital transformation journey to attend to market demands, stay up-to-date, and increase efficiency and flexibility. This represents an ongoing and constantly updated process, which targets new goals according to the business needs.

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What is the difference between the two?

The scope of their involvement can differentiate digital innovation and digital transformation.

While digital innovation tackles specific projects and solutions, digital transformation is a broader, more strategic process involving different aspects of a company’s functionality. It often consists of a roadmap with goals and touchpoints to be reached by the company over time.

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So, where to start?

Your digital transformation journey starts with an assessment of the business’s digital maturity, which is essential to understanding where your company’s processes stand, drawing a map for future efforts, and setting out the goals to be reached, how to achieve them, and how to measure and analyze your success.

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And what is the role of low-code?

Keeping up with the fast-paced rhythm of change in the current world is crucial to your business’s chances of long-term survival and growth.

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Low-code development can revolutionize how businesses tackle problems and improve their operations through mobile and web applications. Choosing the right platform impacts your business's effectiveness, flexibility, and adaptability, directly affecting your business’s success in digital transformation.

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Contact us to learn more about our approach to digital transformation and what you can make with low-code for your business to innovate and thrive.

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