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  • Writer's pictureGemma Walton

What Is Digital Transformation?

Updated: Apr 25

Digital transformation is a process for radically changing something using digital tools and describes adopting technologies and-potentially-cultural changes to enhance or displace what existed previously. It is the process of using digital technologies to build new or change existing business processes, cultures, and customer experiences to fit changing business and market requirements. In broad terms, we define digital transformation as integrating digital technologies across a company as various areas, leading to a fundamental shift in how businesses work and deliver value to customers. Digital transformation is a process where companies integrate technology into all areas of their business to achieve fundamental changes.

Digital transformation is what happens to organisations when they adopt new, innovative ways of doing business that are built upon advances in technology. The world of business has changed, and organisations are being pushed to create and execute a long-term technological strategy that addresses digital acceleration. Digital transformation marks the reinvention of the way organisations leverage technology, people, and processes to pursue new business models and new revenue streams, driven by changing customer expectations of products and services. It allows for the reinvention of how your technologies, people, and processes are used to propel your business forward in new ways.

What Is Digital Transformation

Digital Transformation is a deep transformation of activities, processes, capabilities, and models in businesses and organisations, to take full advantage of changes and opportunities from a blend of digital technologies and their fast-moving impacts on society, strategically and prioritised, considering both the current shifts and future ones. Digitalisation is the process of applying digital technologies and capabilities to many things that you normally do, but in newer, better ways that lead to better results. Digitalisation is using digital technologies to transform business processes and projects - for example, training employees to work with a new software platform designed to help ship products more quickly. Unlike digitalisation, digitisation is an organisational or business process change driven by technologically induced changes in industries, organisations, markets, and branches.

Digitalisation in businesses and organizations has led to new business models (such as freemium), new electronic government services, electronic payments, automation in offices, and paperless office processes, using technologies such as smart phones, web applications, cloud services, electronic identification, blockchain, smart contracts, and cryptocurrency, as well as business intelligence using big data. Technologies ranging from big data to the cloud, from IoT to AI, are helping entrepreneurs develop new business models and destroying established ways of running operations. Artificial intelligence (AI) is also changing the workplace, such as by automating business processes that were previously done by hand; enabling "work-from-anywhere" environments; providing insights into the growing stores of customer data; and providing tools that make it easier for employees, both locally and remotely, to collaborate.

It is in the degree of interconnection and the various accelerations that require profound enterprise-wide change that digital (business) transformation must be seen not as a buzzword but as a challenge, a force and, above all, an opportunity for organisations that will enable them to achieve the core business competencies they need to succeed in a rapidly changing environment where the speed of change touches on a myriad of phenomena, ranging from the acceleration of technological innovation and disruptions challenging the status quo of common business models to the need for speed in responding to changing customer and partner demands or unexpected events. It is in the degree of interconnectedness and of various accelerations, which require profound enterprise-wide change, that digital (business) transformation is to be seen as more than a buzzword but as a challenge, force and most of all opportunity for organisations that will enable them to achieve the core business competencies they need to succeed in rapidly changing environments where speed of change touches upon a myriad of phenomena, ranging from the acceleration of technological innovation and disruptions challenging the status quo of common business models to the need for speed in dealing with changing customer and partner demand or unexpected events. While the journey to digital transformation varies greatly depending on an organisation’s particular challenges and requirements, but also the prevailing themes among existing case studies and published frameworks, several consistent, general themes all business leaders and tech leaders must consider. Transformation leaders must be aware of their business, industry, the technology involved, and the regulatory landscape their business operates within to develop an appropriate digital vision.

Transformative leaders must be prepared to communicate this vision with clarity of messaging. CIOs need to know how to talk about tech in business terms--and in ways that inspire people to make changes. If companies are going to keep up with the fast pace of digital changes today, they need to be working on improving effectiveness through technology where they can.

Implementing cutting-edge technologies, however promising, without understanding how it will provide return on investment (ROI) for an organisation and its customers is not going to drive transformation. Without paying attention to these key cultural requirements, the organisation may wind up with state-of-the-art technologies enabling more efficient or efficient processes--such as ordering commodities, taking inventory, or processing payments--without changing the way the organisation operates, what it has to offer stakeholders, and the value it produces for everyone involved.

Digital transformation is delayed and even fails due to a few reasons, including bad leadership, a disconnect between IT and the business, late employee commitment, and shoddy operations. Building software applications, building IT infrastructure, and rolling out business processes is nothing new: Every technology publication, from Business Insider to Wired, has touted digital transformation, and MIT Sloan has a whole digital economics initiative.

Digital Transformation What Is It

Digital Transformation (also DX or DT) uses technology to build value and new services for a variety of stakeholders (customers, in its widest possible sense), while also innovating and acquiring the ability to rapidly adapt to changing circumstances. The business model transformation process occurs through adding different digital contents into existing products/services, digital solutions are implemented. Already a core strategic initiative, digital transformation--a catch-all term for the adoption of new technologies, talent, and processes to enhance the operations of the company and meet customer needs--has taken on increased significance in the wake of the COVID-19 pandemic.

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