A New Digital Era for European Companies
In the early 2000s, the first wave of digital transformation initiated a fundamental shift. European companies digitized their analog processes and increasingly relied on ERP, CRM, and other IT systems, significantly boosting their efficiency. Today, many of these companies face a new turning point: the second digital transformation has become necessary to remain competitive globally and to adapt IT landscapes to modern requirements. At the heart of this new phase is the consistent realignment of enterprise architecture – moving away from rigid, monolithic systems toward modular, flexible, and future-proof architectures.
From Digitization to Redesign: Why Enterprise Architecture is Now Crucial
While the first digital transformation transferred analog processes to computers, the second phase demands a strategic fresh start. Processes and systems are not just digitized but fundamentally redesigned. Modern enterprise architecture enables companies to respond more quickly to market changes, integrate innovations efficiently, and implement data-driven business models. CIOs play a central role in this: they are tasked with closely aligning IT with business and gradually eliminating technological legacy systems.
Three Strategies for the Digital Realignment of IT and Enterprise Architecture
To successfully transition from “Digital 1.0” to “Digital 2.0,” CIOs have three strategic approaches at their disposal, which can be flexibly combined depending on the starting point and company goals:
1. Greenfield Approach – Developing Architecture from Scratch
The Greenfield approach allows companies to completely redesign their IT and enterprise architecture without legacy burdens. CIOs can build a fully modern, scalable system landscape that is optimally aligned with current and future market demands. This complete redesign provides maximum agility and freedom for innovation. However, the challenge lies in the high investment costs and the complexity of implementation. The transformation requires not only financial resources but also a strong willingness to change across the entire organization.
2. Upgrade/Migration – Modernizing Existing Systems
Unlike a complete restart, the modernization approach through upgrades or migration follows an evolutionary strategy. Existing systems are selectively modernized or migrated to modern platforms to optimize enterprise architecture and gradually adapt to new requirements. Companies benefit from faster project timelines and lower risks, as proven processes and system components are retained. However, a certain dependency on legacy systems may remain, which could limit innovation capabilities in the long term.
3. Hybrid Integration – Bridging Legacy and New Solutions
Hybrid integration enables companies to combine existing systems with modern technologies while building a modular enterprise architecture. This approach is particularly suitable for companies that want to remain flexible without immediately replacing legacy systems entirely. New cloud or platform solutions are seamlessly integrated into the existing system landscape. This allows companies to achieve quick market advantages while gradually modernizing the core architecture. However, CIOs must manage higher architectural complexity, as old and new systems need to operate in parallel and be intelligently interconnected.
Growing International Pressure – The Need for Action for CIOs
Given the dynamism of innovative competitors, who are entering the European market with highly modern IT architectures and data-driven business models, the pressure on European companies is immense. Without a modern, adaptable enterprise architecture, companies risk losing their innovative strength and competitiveness. Innovative, forward-thinking companies often operate without the burden of legacy systems, enabling them to adopt new technologies faster and design processes more efficiently.
Conclusion: The Responsibility of CIOs
The second digital transformation is not merely a technical project but a strategic lever for securing long-term competitiveness. CIOs take on the role of architects, modernizing IT while bridging the gap between business and technology. The choice between Greenfield, migration, or hybrid integration depends on the specific situation of the company. What is clear: companies that act now and consistently modernize their enterprise architecture will secure decisive advantages for the future.
As a long-standing SAP partner and experienced IT service provider, Hicron supports companies in aligning their enterprise architecture practically and strategically. Our expert team combines deep process understanding with technological expertise, helping to sustainably transform IT landscapes. From building modular architectures to integrating new technologies, we assist CIOs and leadership teams in preparing their organizations for the demands of Digital Transformation 2.0.
