In conversations with business leaders, I often find that they still do not fully understand what digital business transformation truly is. This misunderstanding is the root cause of why companies continue to struggle—not just with execution, but with realizing the true business benefits and impact.
I hope this brief definition of what digital transformation IS and IS NOT will be helpful to CEOs and executives in shaping their strategic approach.
What Digital Transformation IS – or Should Be:
- A company’s response to new business dynamics in the digital economy, aimed at securing its future position and leveraging new opportunities.
- A fundamental shift in how an organization delivers value to customers through new business models.
- A human-centered transformation, prioritizing customer experience (CX) and employee experience (EX).
- A comprehensive change in perception, thinking, decision-making, operations, and organizational culture.
At its core, digital transformation is business transformation, designed to ensure adaptation and competitiveness in the evolving digital economy.
What Digital Transformation is NOT:
- Simply following technology trends.
- Just the adoption of digital technologies.
- Merely a cost optimization initiative.
- Isolated digital projects within specific business units.
Why Digital Transformation Should Not Be Left Only to IT
If digital transformation is fundamentally about business evolution, why do so many executives leave it primarily or entirely to IT?
If leadership continues to view digital transformation as just an IT strategy, they risk reducing it to fragmented digital initiatives rather than embracing it as a strategic business shift that drives long-term success.