There are a lot of terms being used to describe digital transformation. Below are a definition, approaches, statistics and insights.
Digital transformation refers to the changes associated with the application of digital technology in all aspects of human society. Digital transformation may be thought as the third stage of embracing digital technologies: digital competence → digital literacy→ digital transformation. The latter stage means that digital usages inherently enable new types of innovation and creativity in a particular domain, rather than simply enhance and support the traditional methods. (Wikipedia)
Consultancies like Cap Gemini who has teamed with the MIT Center for Digital Business focus on a model that looks at a firm’s customer experience, operational process, business model and underlying capabilities.
IBM is also working with companies to develop a cohesive strategy for integrating digital and physical elements to successfully transform their business models. The focus is two-fold: -1) reshaping their customer value propositions, and -2) reconfiguring operating models using digital technologies for greater customer and partner interaction and collaboration. Similar to Cap Gemini, the focus then shifts to building the capabilities that allow progress along both dimensions.
Digital transformation statistics speak to the need for corporate change. According to SantokuPartners:
27% of senior executives rate digital transformation as now being a matter of survival.
Over 90% of companies lack suitable digital skills.
66% of all marketers think companies won’t succeed unless they have a digital marketing approach.
Globally, 77% of CIOs agree they need to be aligned with CMOs.
Only 46% of organizations are currently investing in development of digital skills.
87% of companies feel that digital transformation is a competitive opportunity.
It is imperative that firms develop employee skill sets across data, user experience / design and development and social media.
Digital disruption requires a disciplined approach to achieve results.
The pace of innovation and competition will lead to more personalized interactions.