What is Digital Transformation? Definition and Overview

Some transformations have been ongoing for decades, while others are still in nascent stages. In what ways can technology enable better knowledge sharing and collaboration? How can leaders be trained to communicate better, have greater empathy and earn trust in a remote-work environment?

An investment in your workforce’s tools will feel like a direct investment in them. This can increase satisfaction and, therefore, employee retention. With eSign software, they can securely sign, send and track paperwork electronically near instantaneously, saving them hours of valuable time. Know who needs to be on board to make meaningful progress and align those leaders with a unifying goal. The ongoing involvement of these leaders and collaboration in executing the initiative can expedite work. It’s also essential to equip all departments and business units equally.

Determine your digital maturity

People are the essential ingredient in achieving digital transformation. It is paramount to remember that culture and people represent one of the six most important pillars for a successful endeavor; without proper focus, your aspirations will come to naught. Digital transformation is a new venture for insurance companies, having only kicked off in the past couple of years. According to Gartner, CIOs in the insurance industry invest 56% of their budgets on modernizing legacy applications, reflecting the industry’s preference for upgrading rather than replacing legacy systems.

what is digital transformation

Our study in the high-tech and software segment found that 89% of partners are looking for new sources of growth and operational effectiveness. A clear vision, an integrated approach and a focus on value are key to any transformation. Having the right transformation strategy and workplace—typically called a transformation office—is critical for all stakeholders.

Build your transformation roadmap

Digital transformation also changes the landscape for customer communication. Don’t forget to include your team’s accomplishments as part of your progress tracking. Take charge of digital transformation with Whafix’s digital adoption platform. Southwest failed to keep its IT software and infrastructure modernized, and it cost the company millions in revenue, an enormous about of negative PR, and ravished the company’s image with its customers. At this point, it’s not about enterprises choosing to transform; it’s more about deciding how to transform. Analyze, Build and Deliver experiences to application users and drive adoption with the Whatfix Digital Adoption Platform.

  • Both home cooking and online grocery shopping — a category that has been generally resistant to getting moved online — will probably stay more popular with consumers than in the past.
  • Hopefully, this comprehensive look at digital transformation from people to processes to platforms leaves you feeling ready for action.
  • As part of the digital function, executives were also tasked with digitizing the entire ecosystem as well as a separate department with a task to build and maintain the resulting ecosystem.
  • Key leaders like the CDO are instrumental in instilling a change mindset and determining how to prioritize actions.
  • It also builds tolerance for the necessary risks that must be undertaken to achieve real digital transformation.
  • It could be as simple as setting up an ecommerce store or focusing on social commerce.

Digital transformation is more than investing in new technology—it’s a decision to change a company’s culture. Hopefully, this comprehensive look at digital transformation from people to processes to platforms leaves you feeling ready for action. There are three primary technologies or drivers of digital change in businesses, including cloud computing, artificial intelligence and mobile applications .

Company details

The challenges that the financial sector face is related to the protection of sensitive information and data. Let’s look at several industries to see the areas of transformation and future trends. In the U.S. consumers spent $870 billion online in 2021, up https://globalcloudteam.com/ 14% from 2020. According to Digital Commerce 360, if the pandemic had not happened, ecommerce sales would not have reached that level until 2023 . You canlook at some of our case studies to see how global companies identify the gaps in their business.

what is digital transformation

Digital transformation is a foundational change in how an organization operates, communicates, and engages with customers. It’s a disruption to the ‘traditional’ way of operating to become more digital. It’s also about cultivating a digital culture and upskilling the people in your company as it takes a team to work through a transformation. Many people make the mistake of thinking of digital transformation as a discrete project. As Forrester suggests,true transformation is a journey, not a destination.

Examples of Digital Transformation by Industry

Which pillar is the right starting point for your company depends on your context, needs, but also your digital maturity. Typically, companies tackle the first pillars we describe near the start of their digital transformation journey, although as they mature they may continually upgrade to add additional pillars. The fifth-generation mobile network comes with such game-changing improvements as ultra-low latency, extremely high speed of data exchange, and the ability to connect up to million IoT devices per square km at once. Thanks to 5G, smart factories will be able to set connections among far more sensors than previously, take advantage of edge computing, and create a high-speed manufacturing environment. 5G will also fuel DT in any area where IoT is involved — such as remote healthcare and connected car technologies. It’s expected that by 2025 there will be 2 billion connected vehicles on the roads globally.

what is digital transformation