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Digital transformation Definition 

Digital transformation is the change happening in relation to the application of digital technology. As far as an organization is concerned, it refers to the reinvention of an organization, by inculcating digital technology, so as to improve its performance. Considered the third stage of embracing digital technology, it is a way of going paperless. 

About Digital Transformation

Digital transformation is the noteworthy and accelerating transformation of procedures, activities and foundational components of a business leveraging its operating model to its infrastructure with the application of digital technology across society in a strategic and prioritized way.

What it sells, to whom and how it goes to market; a business transformation program touches every limit of a business; from acquiring, financing manpower to operations and innovation, deals and marketing, it is the integration of digital technology into all areas of a business which result into how businesses operate and how they deliver value to customers.

The goals of digital transformation can be unmistakably depicted at this point, to be specific business process progression, focus on focus abilities and improvement in the customer experience, grow revenue, become more efficient, and enhance security by investing in new digital capabilities.

The core objectives of digital transformation are to make businesses relevant in a digital era with:

  • Process Optimization

  • Focus on core competencies

  • Focused Growth

The Business Need of Transformation

Businesses need transformation when they have failed to progress. At the point when a business advances with its market accomplishing new courses of action of customers and building up the advantage of existing ones, it doesn't need to change.

There are different reasons that a business may need to be transformed, it can be a failure in continually focusing on their customers, changing and adapting with, or leading or sake of company's survival in their market.

Digital transformation is a huge undertaking, particularly for bigger organizations but if done right it will bring about a business that is more adjusted to client demands and flexible in the quick-moving advanced future.

The Key Drivers of Transformation

Increasing revenue and cutting costs are often cited as the main drivers in the move towards digital transformation but digitization and employment, business assurance, or application performance, are also critical factors.

These, obviously are natural drivers and constantly a merging of components that achieves changes in a market.

Development of Digital Transformation

Digitization -> Digitalization -> Digital Transformation


This can be explained as the representation of signals, numbers, images, objects etc as a series of numbers, which is expressed as a discrete value. It is the conversion of an analog data into a digital form. A number of industrial sectors, including banking, finance, healthcare and much more have benefitted with this transformation.


It is through digitalization that the actual process of technology-induced changes happens within an industry. Most of the modern phenomenas such as big data, industrial internet, block chain etc were enabled through digitalization.

Digital Transformation

The total and overall societal effect of digitalization is digital transformation. Digitalization creates stronger opportunities to change legal and policy measures, cultural barriers, organizational patterns, socio-economic structure etc.

Examples of Digital Transformation   

There are myriad of companies that have successfully undergone a digital transformation. One such company is Nespresso. Specialized in making coffee machines, this company makes use of a cloud-based customer relationship management system. This system offers its customers an omnichannel access using any electronic device to shop or access their customer service.

Another example is the Schindler Group, a Swizz company. They made use of the internet of things and cloud computing for their transformation. The company partners with Apple to fix smart sensors into their manufactured elevators and escalators. With this inclusion, data from the sensors alert a back-end sensors in case the machine stops working. This backend sensor then uses smart rules engine and a custom mobile application to assign work to the technicians.

Challenges of Digital Transformation

Even with the benefits, digital transformation is a struggle for many organizations. There is also no proven blueprint for its success. To become a digital enterprise CIOs need to move beyond their traditional role as manager and become an enterprise leader, who understands the potential of new technologies. Organizations must also factor the cultural changes they'll have to confront when undergoing a digital transformation. This means the workers and the organizational leaders will have to adjust to adopting and relying on unfamiliar technologies. Additionally, due to the high importance attributed to digital technology these days and the widespread use of it, the implications of digitalization for revenues, profits, and opportunities have a dramatic upside potential.

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