Digital transformation marks a rethinking of how an organisation uses technology, people, and processes in pursuit of new business models and new revenue streams, driven by changes in customer expectations around products and services.
Digital transformation can refer to anything from IT modernization (for example, cloud computing), to digital optimization, to the invention of new digital business models. The term is widely used in public-sector organisations to refer to modest initiatives such as putting services online or legacy modernization. Thus, the term is more like “digitization” than “digital business transformation.”
From the perspective of organisational transformation, true digital transformation requires leaders to go back to the fundamentals. They need to focus on changing the mindset as well as the organisational culture and processes before deciding what digital tools to use and how to use them. The future of the organisation should drive the technology, not the other way around.
- Makes business more competitive.
- Makes employees more productive.
- Allows for a better customer experience.
- Never-ending change.
- Takes time for effective implementation.
- Can cause upheaval & uncertainty.
Gartner Glossary, Digital Transformation
Harvard Business Review, Digital Transformation is Not About Technology