What is Digital Transformation?
In today’s business world, Digital Transformation is more than just a buzzword; it’s a strategic imperative for staying competitive now and in the future. It involves the strategic adoption of digital practices that integrate technology into the core of business models, allowing organisations to leverage technology for a competitive edge
Digital Transformation encompasses adopting digital technologies to revamp existing processes or create new offerings, enhancing customer engagement, empowering the workforce, optimising business activities, and contributing to financial success. Despite these precise definitions, there is often confusion about what digital transformation means. Different industries and disciplines perceive it differently. For instance, professionals in digital marketing, data & analytics, cloud technology, or customer experience each view digital transformation from unique perspectives.
To add to the complexity, terms like “digital disruption” can further blur the lines. Digital disruption refers to how technologies upend entire industries and change business rules. In contrast, digital transformation is how companies adapt to this new reality.
Various Perspectives on Digital Transformation
Several thought leaders have provided insights into digital transformation:
- Fitzgerald et al. (2014) define it as “the use of new digital technologies (social media, mobile, analytics, or embedded devices) to enable major business improvements such as enhancing customer experience, streamlining operations, or creating new business models.”
- Liu et al. (2011) view it as “an organisational transformation that integrates digital technologies and business processes in a digital economy.”
- Carroll and Maher (2023) describe it as profound structural changes to core processes and business models using technology to meet competitive and customer demands.
- Saldanha (2019) adds that it involves digital technology becoming the backbone of new product development and business models..
Beyond Technology: Strategy and Mindset
However, digital transformation isn’t solely about technology. Rogers (2016) argues that “digital transformation is fundamentally not about technology but strategy.” This perspective suggests that digital leadership teams must identify strategies to leverage innovations in business models that enhance customer needs and experiences.
Solis (2021) emphasizes that it has more to do with customer behavior than technology. Tabrizi et al. (2019) suggest that while digital technologies present opportunities for efficiencies and customer gains, digital transformation will magnify flaws if the right mindset for change is absent.
A Holistic Approach
Vaz (2021) prefers the term “digital business transformation” to the overly generic “digital transformation.” He describes digital business transformation as a holistic approach to changing how an organisation thinks, organises, operates, and behaves.
Conclusion
Digital Transformation is a multifaceted concept that involves much more than just adopting new technologies. It requires a strategic approach, a willingness to adapt, and a focus on enhancing customer experiences and operational efficiencies. By understanding and embracing these principles, businesses can navigate the complexities of digital transformation and achieve long-term success.
