Because digital transformation will look different for every company, it can be hard to pinpoint a definition that applies to all. However, in general terms, we define digital transformation as the integration of digital technology into all areas of a business resulting in fundamental changes to how businesses operate and how they deliver value to customers. Beyond that, it’s a cultural change that requires organizations to continually challenge the status quo, experiment often, and get comfortable with failure. This sometimes means walking away from long-standing business processes that companies were built upon in favor of relatively new practices that are still being defined.
With a plethora of articles and various definitions of digital transformation, it’s easy to see why there is some confusion around the topic. For instance, author Greg Verdino focuses on what businesses that undergo digital transformation may expect to achieve. He says, “Digital transformation closes the gap between what digital customers already expect and what analog businesses actually deliver.”
A definition from The Agile Elephant emphasizes all the ways businesses may need to adjust their existing practices: “[Digital transformation] involves a change in leadership, different thinking, the encouragement of innovation and new business models, incorporating digitisation of assets and an increased use of technology to improve the experience of your organisation’s employees, customers, suppliers, partners and stakeholders.”
And the Wikipedia definition, while vague, touches on how the effects of digital transformation extends beyond businesses to society as a whole. “Digital transformation is the changes associated with the application of digital technology in all aspects of human society,” it states.