The Balancing Act: Knowing When to Digitize and When to Disrupt
- Alvin Lourdes
- Nov 23, 2024
- 3 min read
Nov 23 2024
Jensen Huang, CEO of Nvidia, once said, "Knowing what the implications are in every single layer in everything that we do." This perfectly captures the essence of the choice we face with technology: digitization and disruption. Both are necessary, but they operate at different layers of impact, and knowing when to use each is what sets true innovators apart.
One of the most powerful things about technology is that it allows us to question the status quo. We don’t have to accept things the way they’ve always been. We have a chance—an obligation, even—to rethink and rebuild. But here’s the question: should we digitize what’s already there, or should we disrupt it entirely? If you’re only digitizing without asking how things could be fundamentally better, you’re an incrementalist—and that’s not enough to solve the world’s biggest challenges.
Digitization has value. It’s about improving existing systems, making them faster, more efficient, and less reliant on outdated methods. But digitization doesn’t change the core of how things work—it just optimizes them. Disruption, on the other hand, doesn’t settle for better—it creates something new, something better than anyone imagined.
Digitization: Building on Legacy Systems
Take a library system as an example. Digitization would mean creating an online catalog to replace the old card index system. Now, instead of flipping through a drawer of index cards, people can search for books online. It’s helpful, it’s necessary, and it’s a meaningful improvement. But it doesn’t change the fundamental experience of borrowing books—you still have to visit the library, wait in lines, and manually check out books.
Digitization has its place—especially in industries where processes are deeply entrenched, like government services or healthcare. For example, hospitals digitizing patient records saves lives by making information more accessible to doctors and nurses. But at the end of the day, digitization optimizes the existing system. It doesn’t rethink how the system could work entirely.
Disruption: Rethinking the Entire Experience
Now, imagine we disrupt that library system. Instead of simply digitizing the catalog, we ask bigger questions:
Why does someone need to physically go to a library to borrow a book?
Can books be delivered directly to their doorstep or downloaded instantly?
How do we make the library experience accessible to someone who can’t leave their home or works odd hours?
This leads to services like eBooks, online learning platforms, or even book delivery services powered by AI recommendations. Suddenly, the system doesn’t just optimize—it transforms. Disruption doesn’t ask, “How do we make the existing system better?” It asks, “Why does this system even exist, and how do we design something better from scratch?”
Disruption does three things:
Redefines trust: In the old model, you trust the library staff to manage your loan records. In a disrupted model, trust is handled by an algorithm or automated system.
Shifts cultural norms: What used to require physical effort—visiting the library—now happens instantly, anywhere.
Changes the business model: The library isn’t just a physical building; it’s a service that meets people wherever they are, using technology to bridge the gap.
Knowing the Right Path: Questions to Ask
Jensen Huang’s quote reminds us that understanding every layer of a system is critical. Whether you’re digitizing or disrupting, you need to evaluate the implications at every level. Here are the questions to guide your thinking:
Are we making an outdated system faster, or are we solving the root problem?
Does this system need incremental improvement, or is it ready for a complete overhaul?
How does this affect trust, cultural norms, and business models?
Will this change stabilize existing processes, or will it unlock entirely new opportunities?
Building the Future: Both Incremental and Transformational
The future isn’t just about choosing digitization or disruption—it’s about knowing when to apply each. Some systems, need a foundation of reliability through digitization. Others, are ripe for disruption.
The goal is to build systems that are both sustainable and transformative. When we strike the right balance, we’re not just improving what exists—we’re creating what’s next. And when we understand the implications at every layer, as Huang suggests, we stop thinking incrementally and start building boldly.
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