What Is Digital Transformation?

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The term “digital transformation” describes an overall vision where technology, along with human resources, improves efficiency and effectiveness of business, cultural, and social activities. Digital transformation remakes processes through computing advances such as the internet of things (IoT), mobile applications, customer engagement, artificial intelligence and data, and analytics. While the definitions of digital transformation embody different nuances, the overall effect is to mechanize business to the benefit of customers, workers, investors, and other stakeholders.

An article in the MIT Sloan Management Review says that the outcome of digital transformation is self-driving enterprises “that set and maintain their own course by crunching and acting on data, leaving humans to focus on more value-added activities.”

Other Definitions of a Digital Transformation Include:

  • Enabling an “overarching vision of a business – and making this vision operate more efficiently than ever before.”(Leon Adato)
  • Reimagining business for the digital age. (ZDNet)
  • Changing “the way organizations connect with customers to stay relevant while incorporating smarter technologies that allow businesses to be more competitive.” (Mighael Botha)
  • Digitizing through modest initiatives such as putting services online or legacy modernization (Gartner)
  • Reshaping business processes, corporate culture, and IT operations to provide more value to customers, workers, and stakeholders (TechRepublic)

Digital Transformation Use Cases Include:                                                                

  • Nike makes the “digital shopping experience a lifestyle all its own”
  • Progressive and other car insurers provide a “usage-based experience that tracks driving and offer discounts and rewards for safe driving”

Businesses Digitally Transform to:

  • Unlock insights
  • Create an engaged and self-directed workforce that can leverage automation
  • Integrate operations
  • Customize services
  • Better support customers
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