Digital Transformation

Digital Transformation by Definition

Because digital transformation has many definitions, domains, and application areas, it can confuse anyone in addition to information technology experts. To eliminate any confusion, the best way to define it is to know what is not digital transformation:

• Digital transformation is NOT about new tech.
• Digital transformation is NOT only a top-down decision.
• Digital transformation is NOT about growth alone.
• Digital transformation is NOT about people.
• Digital transformation is NOT limited to the customer experience.
• Digital transformation is NOT any single thing, it is everything. 

So, digital transformation is:

• A shift in mindset that encourages everyone to embrace change and break habits.
• Establishing strong cultures that are adopted by employees and leadership alike.
• The capability to think deeply, ask pertinent questions, and find solutions.
• Allowing technology to highlight employee expertise and drive constant innovation.
• An approach that helps continually improve processes and maximize productivity.
• Being able to evolve with the landscape, understand customers, and drive value.

Digital Transformation Pillars & Stages

Digital Transformation Pillars: Digital transformation is mainly about 3Ps (Process, People & Platform) 

• Process: Automate Processes to Optimize, Control, Reduce Cost & Increase Revenue.
• People: The organization's people will change their culture, behavior, and mindset to follow the digital transformation strategy decision-makers adopt.
• Platform: Choosing the right technology platform is a core pillar of business success.

Digital Transformation Stages: Digital transformation is a three stages journey:

Digitization:

• Elimination of paper transactions and the need to visit offices in person. 
• Electronic procedures mirror paper-based ones.
• Data exchange between public institutions is regulated, and citizens are required to provide their information only once to any institution (or never if it comes from a public registry).

Digitalization:

• The administrative procedure, including some decisions, is automated, eliminating manual intervention by service providers. The algorithms and criteria can be traced and explained by humans.

Transformation:

• Based on the information already provided by the beneficiary stakeholder people in the organization, the organization takes actions proactively and in an automated way so that the beneficiary stakeholders do not have to initiate them. This can particularly occur around life events (for beneficiaries) and business episodes (for companies).

Digital Transformation Maturity Levels

The transition from physical products to digital services is very demanding: it requires new skills, a value chain, and a customer-focused mindset. It is a real challenge, especially for those industries focused on products and retail. Nevertheless, digital transformation is not just an event, It is here to stay, and companies should think about their whole business model when embracing it.

Conclusion:

Digital transformation is a massive undertaking, especially for larger, established companies. When it is done right, it will produce a business that is more aligned with the customer demands and resilient in the fast-moving digital future.