The definition of digital transformation is the realignment of, or new investment in, technology, business models, and processes to drive new value for customers and employees and more effectively compete in an ever-changing digital economy.
This is how I define digital transformation, having evolved it slightly over the years. This definition, which was introduced in 2013/14, was different at the time in that it didn’t solely focus on technology. Early in its rise though the hype cycle, digital transformation was largely technology-centric with a majority of its audience consisting of CIOs, IT (information technology) professionals, vendors, integrators and consultants. While this is still the case, I noticed in my early research, that digital transformation was more than “digital.” It was also about change and change management.
One of the most interesting findings across every report was that digital transformation was part technology but also part human. In my inaugural report, I closed with the observation that while the modernization of technology systems often steals the spotlight, digital transformation is really a human story.
Not everyone in the C-Suite, the board or influential shareholders and stakeholders agree on their view of market behaviors, trends and what lies ahead. They’re disconnected from customers (and employees) by design. They manage business at scale and are measured by their ability to increase margins, efficiencies, markets, profits, shareholder return, etc. Digital transformation for many organizations is viewed as a cost center. It’s almost a bit counter-intuitive in a way.
