Understanding Digital Transformation

What is digital transformation? It refers to digital technology being integrated into different areas of the business. Therefore fundamentally changing how you operate and deliver value to end-users. It is also a cultural change that requires organizations to continually challenge the status quo, experiment, and get comfortable with failure.

Defining Digital Transformation

Digital transformation is a way to describe the evolution of organizations―and entire industries―due to rapid advancements in digital technology.Digital transformation can have different meanings. Sometimes, it refers to what is happening in the world. The past decade has seen disruptive shifts in markets and business models and cultural expectations. Organizations are under tremendous pressure to keep up, let alone be digital leaders.

Another meaning of digital transformation is how an organization might change to serve their customers better and create value in more innovative ways.

Digital transformation integrates new technology and new applications into your existing infrastructure. Thus, fundamentally changing how it operates. But transformation does not happen with technology alone. It needs adjustments in the processes. Furthermore, it also requires changes in the culture of an organization. Hence, because it does not matter how functional and efficient your applications and infrastructure are if old bottlenecks still slow you down.

Digital Transformation Explained

Digital transformation is essential to all kinds of businesses. Small scale to big business enterprises today adopt digital technology. This is because technology has made almost everything digital. However, the meaning of digital transformation is not that clear to everybody.

In layman’s language, digital transformation means the use of modern technology to run your business. In other words, business enterprises do away with old and traditional processes and adopt new ones. It cannot be denied that almost everything today is dependent on modern technology, from simple home appliances to more complex industrial types of machinery and computers. You can seldom see paperwork in offices today. Almost everything is done with the help of computers.

However, how it looks and is applied depends on the nature and size of the business that uses it. So there is no exact explanation as to what it is, except that it makes use of modern technology.

Stages for a Purposeful Digital Transformation

Digital transformation has several stages. These stages serve as guides so a company or business can be purposeful but at the same time, advantageous.

Business as Usual

Business organizations operate with a familiar legacy perspective of customers, processes, metrics, business models, and technology. They believe that it remains the solution to digital relevance.

Present and Active

Experimentation drives digital literacy and creativity throughout the organization. Hence, aiming to improve and also to amplify specific touch points and processes.


Making experimentation intentional. Thus, to drive bolder initiatives. Likewise, to seek executive support for new resources and technology.


Recognize the strength in collaboration. Hence, as their research, work, and shared insights contribute to new strategic road maps that plan for transforming digitally.


The formation of a dedicated digitally knowledgeable team to guide strategy and operations based on business and customer-centered goals.

Innovative and Adaptive

Digital transformation is a way of business. It is also a new environment. Hence, culture is established to identify and act upon technology and market trends in the pilot and, eventually, at scale.

Wrapping Up

The world is ever-changing, and one of the reasons is modern technology. Digital transformation is a product of advanced technology. The term might sound complicated. Well, it might be, in a way. But with proper understanding and knowledge, it can “transform” business for the better.




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