Digital transformation

Digital transformation (DT) is the process of adoption and implementation of <a href="/facts/Information_technology/glMzunwe">digital technology</a> by an organization in order to create new or modify existing products, services and operations by the means of translating business processes into a digital format.

The goal for its implementation is to increase value through <a href="/facts/Innovation/aa7hadLw">innovation</a>, invention, improved <a href="/facts/Customer_experience/WsurycBq">customer experience</a> and efficiency. Focusing on efficiency and costs, the <a href="/facts/Chartered_Institute_of_Procurement_%2526_Supply/LblxIydL">Chartered Institute of Procurement & Supply</a> (CIPS) defines "digitalisation" as<blockquote>the practice of redefining models, functions, operations, processes and activities by leveraging technological advancements to build an efficient digital business environment – one where gains (operational and financial) are maximised, and costs and risks are minimised.</blockquote>
However, since there are no comprehensive <a href="/facts/Data_set/eDvegUTK">data sets</a> on digital transformation at the macro level, the overall effect of digital transformation is still (as of 2020), too early to comment.
While there are approaches which see digital transformation as an opportunity to be seized quickly if the dangers of delay are to be avoided, a useful incremental approach to transformation called <a href="/facts/Discovery-driven_planning/Mbyr4QRg">discovery-driven planning</a> (DDP) has been proven to help solve digital challenges, especially for traditional firms. This approach focuses on step-by-step transformation instead of the all-or-nothing approach. A few benefits of DDP are risk mitigation, quick response to changing market conditions, and increased success rate to digital transformations.

Digital transformation open-in-new

Digital transformation