Business Digitalization Strategy: How to Choose the Right One? , part 3.

Digitalization strategy of the enterprise - Two possible approaches:

• All-in-One
• Best-of-breed

The all-in-one concept incorporates all the necessary features and tools into one application, while the best-of-breed approach offers specialized modules for specific areas. In this article, we will look at comparing the two solution concepts and focus on which approach may be the most suitable for your company.

Nowadays, the digitization of companies is inevitable for successful business. However, in addition to choosing the appropriate technologies and tools, it is also important to choose the right concept for the digitalization strategy of the enterprise. There are two main approaches to digitization:

All-in-One

The all-in-one approach is an enterprise digitization strategy that focuses on providing all the necessary functionalities and services within a single unit. This approach offers simple management and integration of all applications and services, which can be advantageous for companies especially in terms of reducing the cost of IT Infrastructure and staff.

Benefits

1. Simplicity: Simplicity is a key factor that allows organizations to easily and quickly access all the necessary functions. With the use of a single system, the cost is reduced and the efficiency of work is increased. Workers do not have to spend time training and using various applications.
2. Effectiveness: Integration All functions in a single system enables organizations to make better use of their data and information and respond more quickly to changes in the environment. The result is an increase in work efficiency and an improvement in the quality of outputs, which has a positive impact on the overall performance of the organization.
3. Uniformity: A unified system promotes cooperation between different departments and improves coordination of activities within the organization. This enables the organization to better respond to customer and market needs and increases the organization's ability to adapt to changes in the environment.

These benefits are very appealing to companies seeking to reduce IT costs and increase the efficiency of their workers. All-in-one solutions are often used in smaller companies that need efficient and simple solutions, but they are also popular in areas such as retail, where simplicity and speed are becoming key factors.

On the other hand, the all-in-one approach also has its drawbacks. Companies that opt for this approach are tied to a single vendor and thus do not have the ability to use specialized applications and services from other providers. In addition, if an application or service proves to be underperforming or inadequate for a company's specific needs, it will be necessary to switch to an entirely new solution, which can be costly and time-consuming.

Best-of-breed

A best-of-breed approach is the opposite of an all-in-one solution. Instead of using a single system for all of a company's needs, the best-of-breed approach focuses on selecting specialized applications for each individual area. These applications are then integrated and linked so that the company can achieve optimal performance in all areas.

Benefits

1. Specializations: Best-of-breed solutions are usually designed for a specific area of business and are specialized for a particular task. This means that they have a high level of functionality and allow organizations to achieve excellent results within a specific area. Specially designed applications help increase the performance of the organization.
2. Flexibility: Using best-of-breed solutions, organizations can choose the applications and solutions that best meet their needs. These solutions can be easily adapted to the specific requirements of the organization and allow the organization to better respond to changes, which leads to an improvement in the overall performance of the organization.
3. Innovation: The use of best-of-breed solutions enables organizations to leverage the latest technologies and innovations in a variety of business areas. These solutions are typically more developmentally advanced and faster in adopting new features and innovations, enabling organizations to stay at the forefront of technological development and innovation.

The best-of-breed business digitization strategy is especially suitable for medium and large companies that have specific needs and require specialized solutions for different areas of their business. These companies often need sophisticated applications that are specialized in specific areas such as finance, manufacturing, logistics or marketing. The best-of-breed approach allows these companies to leverage the best applications in each area, improving performance and efficiency. These companies typically also have larger IT investment budgets and can afford the greater cost of integrating and managing different applications.

However, the disadvantages of the best-of-breed approach often relate to application integration. Because each application is specialized for a specific area, they can be more challenging when integrating into an existing system. This can be a problem for smaller companies with limited resources or for companies trying to get results quickly.

Another disadvantage is that choosing the best app on the market can be a complicated and time-consuming process. Companies need to conduct thorough market research, they can ask for professional help to select applications. This can be expensive and time-consuming.

A key strategy for a successful business

Digitalization is extremely important for successful business today, and the right choice of solution concept, that is, digitalization strategy, can be key to achieving business goals.

Final recommendations for choosing the right strategy for digitalization of the enterprise

Choosing the right business digitalization strategy can be key to successful business today. Choosing between an all-in-one and best-of-breed approach should be based both on the specific needs and goals of your company, as well as on factors such as company size, flexibility and specialization requirements, and budget.

All-in-one solutions are suitable for smaller companies with limited resources that need easy-to-use and affordable solutions to improve processes in different areas of the business. This approach offers advantages such as simple integrations, easy management and a unified interface. On the other hand, an all-in-one solution can be limiting in certain areas, which can lead to disappointing results.

The best-of-breed approach is more suitable for larger companies that need specialized solutions for specific areas of business. This approach allows the selection of the best applications for each area of the business, which can lead to greater efficiency and productivity. However, the best-of-breed approach also requires more investment in integrating and managing different applications.

The need for specialization and flexibility, as well as the company's overall budget and long-term goals, should be considered when choosing a suitable business digitization strategy. If the company opts for an all-in-one solution, it is necessary to choose a reliable supplier with a good reputation. In the case of a best-of-breed approach, an application from reputable suppliers should be chosen and at the same time the amount of investment in integration should be made.

In any case, it is important to carry out a detailed analysis of the needs and resources of the company before deciding on a specific approach. Choosing the right digitalization strategy can help companies increase efficiency and competitiveness, and should be considered as a long-term investment for the future.

More articles in the Digital Transformation series

What is Digital Transformation? , part 1.

Benefits of Digital Business Transformation, Part 2.

Business Digitalization Strategy: How to Choose the Right One? , part 3.

Using the Microsoft “ecosystem” in the digital transformation of the enterprise, part 4.

How to properly implement digital transformation: 5 steps to success in the era of digital transformation, part 5.

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