Digital transformation (DT) market is projected to grow at a higher than 20% compounded annual growth rate from 2023 with an associated spending of 1.6 $trillion in 2022 and a projected spending forecast of 3.4 $trillion in 2026. Although this astonishing growth is attributed mainly to the Covid-19 pandemic, which since 2020 caused many organisations to increase significantly their investment and adoption of digital, there are many other contributing factors at play including changing customers' behaviours, preferences, and needs.
While digital transformation is a necessity for all organisations to remain competitive, the term is often overused, sometimes confusing businesses and practitioners alike. Many times the terms digitisation, digitalisation, and digital transformation are used interchangeably, together with digital change and even metamorphosis.
So what do they all mean and what are their benefits for an organisation?
“…Digital transformation is the integration of digital technology into all areas of a business, fundamentally changing how it operates and delivers value to customers…”
During digital transformation organisations metamorphose; they change their "shape" and "form", redefining and refining the core of their business. Digital transformation is much more than being present in social media, or implementing the latest digital technology, or a digital solution for a specific business function of the organisation. When used well, it transforms the organisation by enhancing productivity and innovation.
Digital transformation when it is successfully accomplished impacts three main enterprise areas,
“…Digital transformation should not be seen as a panacea…”
However, digital transformation should not be seen as a panacea to all challenges that organisations face or to remaining competitive. One key challenge that transformation leaders face is how to drive innovation within their organisation and how to improve productivity. Digital transformation can provide answers to both of these enterprise areas, but implementation should start with setting up an appropriate strategy clearly articulating the
benefits
that the organisation is aiming to achieve through the digital transformation project.
But more about how to successfully implement digital transformation projects on my next article.
Costas Chryssou
MBA, PhD
Founder and Managing Director
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