Digital transformation: Recovering the meaning behind an overstated concept

The phrase 'digital transformation,' or DX, in short, is thrown around at an alarming level in the promotional and marketing materials of large tech companies and consultancies. But what does digital transformation really mean?

Digital transformation in today’s tech world is a buzzword, fashionable jargon that’s often thrown around without seeing any real value or understanding. The term assumes that everyone who creates something new is innovative, but that simply isn’t the case. Many industries have turned to modern tech to rejuvenate or enhance their business solutions. But, that doesn’t mean they’re undergoing a digital transformation. The wording and ideologies used to describe digital transformation have caused the term to be lost in translation. How do we recover the meaning behind an often overstated concept?

What is the True Meaning of Digital Transformation?

Digital transformation is a concept that is expected to earn 2.4 trillion dollars in global spending by 2024, which means different things to different people. Some consider digital transformation as a complete overhaul of legacy systems and transitioning to cloud services, while others believe digital transformation represents a cultural shift. The truth is, digital transformation encompasses both moving businesses from legacy infrastructure to cloud solutions while also representing a new organizational mindset dedicated to providing modernized services while easing the business transition.

Three simple yet key facets define digital transformation and how it truly impacts businesses: People, processes, and technology. Digital transformation cannot work if only one or two facets are fully optimized. All three facets must be in sync for transformation to truly drive businesses forward and net them strong market positioning.

People

The tech must be intuitive, generating quality user experiences and making jobs simpler for employees, reducing time spent on manually finding alternative solutions. Digital transformation is an extensive, multi-layered process. If the people involved don’t understand how the tech works and the vital aspects of the digital transformation process, it won’t work. Also, people should understand the end destination of the digital transformation and their roles in executing all digital transformation strategy elements. 

Processes

Having the right processes in place ensures digital transformation occurs seamlessly. The tech won’t work, and the data won’t make sense to anyone involved without the right processes.

First, you must have data transformation to make digital transformation work. Data transformation involves more than simply extracting, forming, and loading data, collecting and storing it for future use. Data transformation involves consistent analysis and leveraging of real-time data to inform organizational decision-making. Data transformation also optimizes operational efficiency, making digital transformation strategies easier to implement. Considering that 85 percent of business leaders need data insights to improve their decision-making, data transformation is crucial to the success of the digital transformation and business evolution. 

Second, once the data is understood, people must understand the dependencies between different types of data and servers, platforms, and delivery channels. Digital transformation strategies stall if the back-end isn’t supported and processes aren’t mapped correctly, then digital transformation strategies stall.

Technology

Too many business transition strategies are rooted in the present rather than the future, becoming a forward-thinking business that survives in a hyper-competitive marketplace. Hence, organizations are hindered by past technical shortcomings.

Because technology keeps rapidly evolving, the foundations for digital transformation should be set now, so it’s easier for organizations to support new technologies once they are introduced.

Digital Transformation is Not a One-Size-Fits-All Model

Digital transformation isn’t an out-of-the-box solution that can be condensed to meet the needs of every company. Companies have unique needs and requirements, necessitating robust solutions that are personalized to an organization’s liking. Some businesses will rely on cloud consulting and cloud services to optimize their supply chains. Others will go from traditional channels to the internet and/or mobile-friendly channels.

Understanding data and insights and organizational resources will help business leaders realize the true benefits of digital transformation, making their operations more agile and efficient. By shifting from a one-size-fits-all mindset, it’s easier to revitalize a fatigued and outdated C-suite model while also giving organizations of different sizes added athleticism to compete in an increasingly unpredictable marketplace.

Digital transformation will change a business for the better once it is understood that data is central to every strategy or initiative a business executes. Also, digital transformation only exists if a sound business transition strategy acts as its foundation, allowing organizations to become more competitive and adaptive. By adopting a sounder understanding of what facilitates digital transformation, there is no need to label every introduction of tech as 'digital transformation,' eliminating unnecessary superlatives and confusion along the way. Business leaders are more invested and become bigger change agents once they realize the true meaning of transformation.

Once we recover the true meaning of digital transformation, we see the true value in technological innovation and see the data-driven progress of various industries as they look to make a successful business transition.

Image credit: Olivier26/depositphotos.com

Ram Konduru is the Chief Executive Officer at Aviskaran Technologies.