Digital, digital, digital first. It’s what you hear. In today’s rapidly evolving business landscape, there’s a stark divide between companies that truly embrace digital transformation and those that merely dabble in it. This difference isn’t just about having a website or using social media—it’s about fundamentally reimagining your entire business model through a digital lens. Let’s dive into why a digital-first strategy is critical for success in the coming years, and why settling for a digital-also approach is a recipe for obsolescence.

1. Digital-First vs. Digital-Also: The Fundamental Divide

Digital-first isn’t just a buzzword—it’s a complete paradigm shift in how businesses operate. Here’s the breakdown:

Digital-First:

• Every aspect of the business is designed with digital in mind from the ground up
• Technology is seen as the primary driver of growth and innovation
• Digital capabilities are integrated into the core of products and services

Digital-Also:

• Digital is treated as an add-on to existing business models
• Technology is viewed as a supporting element rather than a central focus
• Digital initiatives are often siloed and disconnected from core operations

The difference? Digital-first companies are built to thrive in the digital age, while digital-also companies are constantly playing catch-up.

2. The Exponential Growth Advantage

Digital-first strategies unlock exponential growth potential that traditional models simply can’t match. Here’s why:

• Scalability: Digital-first businesses can reach global markets with minimal additional cost
• Data-Driven Decision Making: Real-time insights allow for rapid iteration and optimization
• Network Effects: Digital platforms become more valuable as they grow, creating a virtuous cycle

Digital-also companies, on the other hand, are often limited by their legacy systems and linear growth models. They miss out on the compounding effects that come from fully leveraging digital technologies.

3. Customer-Centricity on Steroids

In the digital age, customer expectations are evolving at lightning speed. Digital-first companies are uniquely positioned to meet and exceed these demands:

• Personalization at Scale: AI and machine learning enable hyper-personalized experiences
• Omnichannel Presence: Seamless integration across all touchpoints, both digital and physical
• Real-Time Responsiveness: Instant feedback loops and agile adaptation to customer needs

Digital-also companies often struggle to provide this level of customer-centricity, relying on outdated segmentation models and slow-moving feedback mechanisms.

4. The Innovation Imperative

Innovation isn’t just about coming up with new ideas—it’s about bringing them to market quickly and effectively. Digital-first strategies enable:

• Rapid Prototyping: Fast, low-cost experimentation with new products and services
• Continuous Deployment: Regular updates and improvements without disrupting operations
• Open Innovation: Collaboration with external partners and ecosystems to drive innovation

Digital-also approaches often get bogged down in bureaucracy and risk-aversion, missing out on crucial opportunities to innovate and stay ahead of the curve.

5. Operational Efficiency and Agility

In a world where change is the only constant, agility is everything. Digital-first companies have a significant advantage:

• Automation: Streamlined processes that reduce costs and eliminate human error
• Cloud-Based Infrastructure: Flexible, scalable systems that adapt to changing needs
• Data-Driven Optimization: Continuous improvement based on real-time analytics

Digital-also organizations often struggle with legacy systems and processes that hinder their ability to adapt quickly to market changes.

6. Talent Attraction and Retention

The best and brightest minds want to work for companies that are pushing the boundaries of what’s possible. Digital-first strategies offer:

• Cutting-Edge Technologies: Opportunities to work with the latest tools and platforms
• Purpose-Driven Work: Clear connection between individual contributions and company mission
• Remote-First Culture: Flexibility and work-life balance that today’s top talent demands

Digital-also companies often struggle to attract and retain top talent, especially in tech-focused roles, due to their perceived lack of innovation and outdated work practices.

7. Resilience in the Face of Disruption

The COVID-19 pandemic was a wake-up call for many businesses, highlighting the critical importance of digital capabilities. Digital-first companies were able to:

• Pivot Quickly: Rapidly shift to remote work and digital service delivery
• Maintain Business Continuity: Leverage cloud-based systems to keep operations running smoothly
• Capitalize on New Opportunities: Identify and exploit emerging market needs

Digital-also companies often found themselves scrambling to catch up, with many failing to adapt in time to survive the crisis.

8. Sustainable Competitive Advantage

In the digital age, traditional sources of competitive advantage are rapidly eroding. Digital-first strategies create new moats:

• Platform Economics: Building ecosystems that become more valuable over time
• Data Dominance: Accumulating and leveraging proprietary data sets
• AI-Powered Insights: Using machine learning to uncover hidden patterns and opportunities

Digital-also companies often rely on outdated competitive strategies that are increasingly ineffective in the digital landscape.

9. Financial Performance and Valuation

The market rewards companies that fully embrace digital transformation:

• Higher Growth Rates: Digital-first companies often outperform their peers in revenue growth
• Improved Margins: Operational efficiencies translate to better profitability
• Higher Valuations: Investors recognize the long-term potential of digital-first business models

Digital-also companies often struggle with stagnant growth and declining margins, leading to lower valuations and reduced access to capital.

10. Culture, Leadership, and Attitudes: The Digital Divide

Perhaps the most critical difference between digital-first and digital-also strategies lies in the underlying culture and mindset of the organization:

Digital-First Culture:

• Embraces uncertainty and sees change as an opportunity
• Fosters a growth mindset and continuous learning
• Encourages calculated risk-taking and learns from failure
• Values speed and agility over perfection
• Empowers employees at all levels to drive innovation

Digital-Also Culture:

• Resists change and sees digital as a threat to the status quo
• Maintains a fixed mindset and relies on past successes
• Avoids risk and punishes failure
• Prioritizes stability and predictability over agility
• Centralizes decision-making and stifles bottom-up innovation

Leadership in digital-first organizations:

• Sets a clear vision for digital transformation
• Invests heavily in digital capabilities and talent
• Leads by example in adopting new technologies
• Creates a sense of urgency around digital initiatives
• Aligns incentives and KPIs with digital success metrics

Leadership in digital-also organizations:

• Pays lip service to digital without fully committing
• Underinvests in digital capabilities and relies on outdated skill sets
• Delegates digital initiatives to lower-level employees
• Treats digital as a “nice to have” rather than a core strategic priority
• Maintains traditional metrics that don’t capture digital value creation

The fundamental difference lies in the level of commitment to digital success.

Digital-first organizations operate with a “adapt or die” mentality, recognizing that their very existence depends on their ability to succeed in the digital realm. They create a culture that is laser-focused on solving the challenges of digital success, constantly innovating and evolving to stay ahead of the curve.

In contrast, digital-also organizations lack this unwavering commitment. They waver in their digital investments, constantly second-guessing whether to continue with digital programs or cut them. This lack of commitment creates a culture of uncertainty and hesitation, where digital initiatives are constantly hindered and distracted by competing priorities.

The result? Digital-first companies forge ahead, creating new markets and disrupting existing ones, while digital-also companies are left in the dust, struggling to remain relevant in an increasingly digital world.

In conclusion, the choice between a digital-first and digital-also strategy isn’t just about technology—it’s about the very future of your business. As we move deeper into the digital age, the gap between these two approaches will only widen. Companies that fully commit to a digital-first strategy will be well-positioned to thrive in the coming decade, while those that cling to a digital-also mindset risk becoming obsolete.

The message is clear: embrace digital transformation wholeheartedly, or prepare to be left behind. The time for half-measures and tentative steps is over. The future belongs to the digital-first. Want some help? Reach out and Get Heroik! We offer a free project planning tool, and a free tailor-made business roadmap.