There are many definitions for the term Digital Transformation.
According to David Rogers “the
transformation of an established business so it can thrive and remain competitive in a world of constant
digital change.” (n.d., para 4) Mark Samuels defines Digital Transformation as “…using digital
technologies to change a business process to become more efficient or effective”(2018, para 1). What is
commonly connoted by all these different definitions is that digital transformation is a process that
integrates digital technology into all aspects of the business changing its core element and/or operational
elements to deliver value to its customers.
Digital Transformation involves technological concepts like cloud computing, the Internet of things, big
data, and artificial intelligence, and in the next several years, a focus on certain hyped-up tech subjects,
such as the metaverse, blockchain, and digital currencies can be anticipated (Samuels, 2018).
Nevertheless, the concept of Digital Transformation goes beyond these sophisticated technologies and it
has to be understood by focusing on the following main truths;
1. Digital transformation is mostly concerned with business rather than technology;
2. Digital transformation entails transforming an existing company;
3. Digital transformation is a continual process (Rogers, n.d.).
It is true that in Digital Transformation, technology will be used in the execution of certain initiatives.
However, the core of the transition is around customers, staff, and the product or the service that business
offers. Companies often fail in their digital transformation (DT) efforts due to a misplaced focus on
technology over strategy. Despite the $1.3 trillion spent on DT in 2019, a staggering $900 billion was
wasted ((Tabrizi et al., 2019).
Moreover, Digital transformation is about transforming an existing business and it is significantly
different than starting a new business. Everything must be done to exploit the organization's current
strengths and change them for the future.
On the other hand, there is no start or finish date for Digital Transformation. It is about developing a more
adaptable and agile company capable of responding to future waves of digital change.
As mentioned above, Digital transformation transcends mere technological developments; it includes the
evolution of strategic thinking. As articulated by Columbia Business School Professor David Rogers,
digital transformation entails five core domains crucial for organizational mastery and future growth
(2016).
First, the customer domain stresses the dynamic change in value creation and interaction enabled
by digital technology (Wheeler, 2018). Customers are no longer passive receivers, but active
influencers whose input and engagement drive corporate success (Wheeler, 2018).
Second, the competition domain emphasizes the growth of competitive landscapes outside
conventional industry boundaries, as non-traditional firms' digital offerings reshape market
dynamics (Wheeler, 2018).
The data domain emphasizes the extraordinary creation and accessibility of data, facilitated by
advances in storage and analytics technology (Wheeler, 2018). Data, which was formerly pricey
and compartmentalized, now offers chances for insight and creativity.
The fourth domain, innovation, is being transformed by digital technologies, which allow for
low-cost quick prototyping, experimentation, and continuous learning. This promotes agility and
flexibility in product creation and market response.
Finally, the value domain emphasizes the need of ongoing adaptability to changing consumer
preferences and competitive landscapes (Wheeler, 2018). In the digital era, complacency is
dangerous, necessitating constant innovation and alertness (Wheeler 2018).
These areas jointly change firms' strategic landscapes, prompting a fundamental rethinking of
long-held beliefs and practices (Wheeler, 2018). In the face of technological disruption,
enterprises must embrace digital transformation as a strategic imperative, reinventing their
operations and value propositions to prosper in the digital age (Wheeler, 2018).
References
Tabrizi, B., Lam, E., Girard, K., & Irvin, V. (2019, March 13). Digital Transformation Is Not About
Technology. Harvard Business Review. [Link]
technology
David L. Rogers. (2016). The Digital Transformation Playbook : Rethink Your Business for the Digital
Age. Columbia Business School Publishing.
