What is Digital Transformation?
It is a process of applying technology to the way organisation operates and generates customer value. This change includes making it’s offer more digital, automating processes, digitalising products’ sales and delivery. It also means using various digital tools to constantly measure and adapt to the rapidly-changing market. Such change enforces a major shift in organisation’s culture. Digital transformation is a massive change. Therefore it requires a good digital strategy, training employees, culture shift, and quite often a change management process.
Digital Transformation vs. Digitisation
Digital transformation and digitization are often used interchangeably, but they are not the same thing. Digitization refers to the process of converting information into a digital format, while digital transformation refers to the use of digital technologies to fundamentally change how an organization operates. In other words, digitisation is a necessary but not sufficient condition for digital transformation.
Digital Transformation or Digital Adoption?
Many companies do not need to disrupt the market and go for a full blown digital transformation. Many start with adopting a set of digital tools helping them run the business. Tools like CRM, ERP, digital marketing tools help reducing their costs, automating processes or generating more revenue. In such case we say about Digital Adoption. Digital Adoption is an element of digital transformation. It requires a good process analysis, selecting right tools and educating employees but doesn’t require a major organisational shift.