There are five main myths believed about digital transformation. But first, definitions are needed. Digital transformation is distinct from both digitizing and digitalization.
Digitizing means changing something analog or physical, such as an LP recording or a photograph or a paper letter, into an electronic form. The electronic form uses the binary digits of ones and zeroes so that computers can work with these electronic forms of media.
Digitalization means using electronic equipment and software technology to handle those digitized media. For example, once a letter is changed into an email, it can no longer be physically mailed. It must be mailed digitally through computer equipment, from one node to another node.
Digital transformation is the overall ultimate result that happens when a business takes advantage of these digital initiatives for improving its business model. It means that a business is completely accessible for both its products, service, and customer care through digital means.
In today’s business world, digital transformation is a top priority for many CEOs. These are times of rapid change in customer preferences and technology that businesses need to navigate if they want to take advantage of it.
While the definition seems simple, it is much more complex. Like all great concepts, many myths are surrounding this one.
Here are five of them:
Digital Transformation Is Only A Concern For The Chief Digital Officer
The Chief Digital Officer (CDO) does not own digital transformation. Neither does the CIO, or COO, or CEO. Digital Transformation is nothing more than business transformation at its core. Any business change today would use
technology as a tool for progress –therefore making it part of digital transformation. The leader should have a vision of how they can evolve their company by embracing digitization in all areas. Therefore, that person must take charge. But it is the concern of all the business leadership.
Digital Transformation Is Not Related To Business Metrics
It is surprising how many people want to adopt technology because everyone else has, or it looks good in the public eye. These are absolutely the wrong reasons for adopting new technologies. A digital transformation exercise must impact real metrics like revenue and cost. Otherwise, it’s not worth doing at all.
Digital Transformation Is Only About Digital, Not IT
The digital front-end and back-end need to be synchronized. A killer engagement app for smartphones is useless if it isn’t integrated with the Big Iron at the backend. The Big Iron makes up most of the hard work in execution. Digital requires a strong IT backbone.
Digital Transformation And Digitization Are The Same Things
This is probably the greatest myth that needs busting. Both digitization and digital transformation are super important, but they are different things. Digitization is about taking processes and making them better through digital tools with operational excellence in mind. It serves to save costs inside-out. Digital transformation goes outside-in by creating brand new experiences. It utilizes data that is accessible via reliable means, which isn’t always necessary nor expected during digitization alone.
Digital Transformation is Quick
Digital transformation is going to be a long journey. It will have stomach-churning ups and downs, and disruptions along the way. But what is important for company leaders are patience and staying focused on goals despite difficulties they may face.