What Is Digital Transformation?

Establishing a Common Understanding

Chapter 1

Recognizing Your Stance for the Future

 

In its most simplistic definition, Digital Transformation (DX) is the practice of transforming business with the use of digital technology. Given the reliance upon technology to move modern business forward, the ultimate goal of DX is to enable organizations to proactively recognize opportunities to gain an advantage in their competitive landscape. This often demands considerable rethinking of existing internal practices in favor of new, more innovative ones.

Sometimes confused with “digital disruption,” it’s important to note that DX doesn’t always mean becoming the next Uber or AirBnB to digitally transform for the future. Instead, companies need to be aware of where a likely disruption might come from and be prepared to address it. A DX initiative is often about building ideas for new revenue streams based on business goals for the long-term and insights from within the business.

Companies that Implement DX Often See the Following Results

Increased productivity and operational efficiency

Improved Customer Experience

Flexibility and scalability to support dynamic needs of the business

The Evolution of the IT Department

 

At the heart of these improvements, though, is the evolution of the IT department. IT teams must gain a deep understanding of organizational business objectives, needs and challenges in order to effectively align technologies to drive desired business outcomes. DX can help IT teams make the shift from being utility service providers to being centers of innovation and revenue generation.

Companies engaged in digital transformation most likely understand that what made them successful in the past won’t help them succeed in a digital economy. A digital transformation involves rethinking the company’s value proposition, not just its operations. This means innovating to deliver enhanced products, services, and customer engagement.

Jeanne Ross

Principle Research Scientist, MIT Sloan

DX covers every aspect of a business such as Sales, Marketing, and Human Resources, but the foundation of this transformation is driven by a business-aligned IT strategy. The IT department falls squarely into consideration when business leaders desire to digitally transform their organizations. This means IT teams must have a keen eye for the specific underlying technologies necessary to achieve an effective and efficient business model. As such, the IT department is the linchpin that determines the success of an organization’s DX journey. For this reason, we’ve built this guide. We hope that our definitions, tips and suggestions will help to facilitate your IT team as they drive your organization into this new territory.

Success in Digital Transformation is not about strengthening or bettering your company; it is about exposing new business and growth opportunities. The InterVision DXS team understands that, at the end of the day, digital transformation is all about your business. Contact us today to kickstart your digital transformation journey.

Read InterVision’s blog post

Digital Transformation Starts with an IT Strategy