What is digital transformation and why do you need it?

In the last few years, the term Digital Transformation has spread widely in the IT environment – it appears in companies’ business strategies, top managers’ presentations, topics of speeches at conferences and webinars. In a short period of time it has turned into a kind of buzzword, causing more discussions rather than reflecting the essence as a modern management concept.

So what is digital transformation really? How is it different from automation or digitalization? And why is it exactly what modern business needs now? Let’s start with the concept.

What is Digital Transformation?

In general, the term digital transformation means changing/transforming the way a company works, its business processes and the value it creates for the consumer with the help of digital technologies. That is, the main thing here is precisely the transformation of the way the company works – its supply chains, processes, communication channels, and thus the creation of a completely different, new consumer value. Which sometimes leads to entry into new markets and customer segments.

This is precisely how “digital transformation” differs from simple automation/digitalization, which usually covers a single part of the business and does not lead to a fundamental change in the way the company works and the value it creates.

Why do you need Digital Transformation?

So why do you need digital transformation? First and foremost, because digital technology has changed the way your consumers behave – the way they communicate, choose and buy products, spend time and have fun. Businesses now need a more comprehensive holistic business strategy that reflects this behavioral model and meets the needs of their customers in a new way.

That’s why accelerated digital transformation, including cloud, data, CRM, BPMN, has now become the number one topic that global CEOs are prioritizing as a corporate agenda, according to IBM research.

Also, an Accenture report shows that the leading companies pursuing a DT strategy have grown twice as fast as most other companies in the past few years, and having recently doubled their technology investments, they are now growing five times faster than their competitors.