What is Digital Transformation-1?

DX Digital transformation, the buzz phrase of the moment, it’s an over-used phrase in business, and certainly a selling opportunity for vendors and consultants (cynical but very true, for example read: Galen Gruman – InfoWorld).

But what exactly does digital transformation mean and how do you apply it?

According to Wikipedia, digital transformation is part of a larger technological process, and is the change associated with the application of digital technology in all aspects of human society and thus also in business. It is described as the “the total and overall societal effect of digitalization” (Khan). Digitization has enabled the process of digitalization, which resulted in stronger opportunities to transform and change existing business models, socio-economic structures, legal and policy measures, organizational patterns, cultural barriers, etc.

Therefore, when planning for digital transformation, organizations must factor the cultural changes they’ll confront as workers and organizational leaders adjust to adopting and relying on unfamiliar technologies.

Digital transformation has created unique marketplace challenges but also opportunities, as organizations must contend with nimble competitors who take advantage of the low barrier to entry that technology provides. At the same time these new competitors can become acquisition candidates or possibly allies.

Thus, digital transformation is about much more than just digital products and services; it’s also about the processes that conceive, create, enable, manage, and deliver them.

Digitally transformed businesses typically develop an ecosystem that blur the lines between supply chain (upstream and downstream), partners, stakeholders , customers, suppliers,  the public, and employees; both strategy and execution are heavily influenced by this ecosystem.

Finally, thinking differently is perhaps the most important ingredient in digital transformation. In fact, if you keep thinking in the same way, all that new technology will be used to do more of the same; and that is exactly the opposite of true transformation.

 

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Tags: #isabellapenati #GrowYourPeople #Digital #Transformation #Marketplace #Ecosystem

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