Digital optimization: core concept of digital transformation

The aim of this paper is to analyse the importance of digital optimization in the process of digital transformation of organizations. Digital optimization and digital transformation are inseparable processes because digital optimization is the foundation of digital transformation. One of the goals of the digital transformation of the business system is to build a stable digital optimization of the system, which is the basis for creating competitive advantages. Digital optimization has a direct effect on reducing costs and increasing income, and without a digitally optimized system it is not possible to stabilize the existing business system. Digital transformation enables the development of a new business model and new forms of monetization of products and services, while at the same time a part of the business system remains in the existing structure of digital optimization, which still achieves the effects of a competitive advantage on the market. Digital optimization is the basis for the growth of income from services that are built as complementary additions to the basic product. The paper presents the development matrix and the relationship between digital transformation and digital optimization as equally important processes in the development of the organization. As an example of the development process of digital optimization, the global music industry, which has completely digitally transformed its business model, is cited. In addition, the examples of Netflix, The New York Times and Alibaba as global corporations that are in the continuous process of digital transformation and digital optimization of business processes are discussed.