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What is Digital Transformation?

5/7/2020

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The words "Digital Transformation" are popping up a lot in the articles I've read lately, but what exactly is it? 

According to Wikipedia,
Digital Transformation (DT or DX) is the use of new, fast and frequently changing digital technology to solve problems.
What does that mean?   

The intent behind digital transformation is to leverage technology to change how companies deliver value to their customers.  This can mean anything from moving all services to the cloud, integrating AI into automated workflows, or simply offering digital payments. There is no one-size-fits-all model for digital transformation.  

Why should I care?

Digital transformation helps mitigate disruption from newcomers to the space.  Companies must evolve to remain relevant or they will be left behind.  As society continues to undergo its own digital transformation, businesses must change as well to meet new customer expectations. 
"Customer expectations are far exceeding what you can really do," says George Westerman, MIT principal research scientist and author of Leading Digital: Turning Technology Into Business Transformation. “That means a fundamental rethinking about what we do with technology in organizations."
I'm ready, now what?

There are a lot of resources out there with step-by-step guides on how to undergo your own digital transformation.  Each company's roadmap will look different but here are some common themes.
  1. Understand your business strategy and how the customer journey and lifecycle inform that strategy
  2. Build consensus and ensure technology and business transform together
  3. Define clear objectives and align your technical solutions to the overall strategy and goals.
  4. Try, evaluate, iterate
  5. Pay attention to the organizational culture as you transform to alleviate fear

Most businesses can agree that change is imperative; successful change is deliberate and iterative. When you undertake your digital transformation, ensure the business strategy and customer expectations drive the technology solution and not the other way around.  

Resources
https://en.wikipedia.org/wiki/Digital_transformation
https://hbr.org/2019/03/digital-transformation-is-not-about-technology
https://www.cio.com/article/3211428/what-is-digital-transformation-a-necessary-disruption.html
​
https://enterprisersproject.com/what-is-digital-transformation
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