Due to the fact that digital transformation will be different for each company, it is difficult to find a definition that applies to everyone. However, in general, we define digital transformation as the integration of digital technology in all parts of a business. The result involves fundamental changes in the way the company operates, but also in the way it provides value to customers. Beyond that, it is a cultural change that requires organizations to constantly challenge the status quo and experiment frequently. This sometimes means moving away from the long-running business processes on which companies are built and moving to new practices that are still evolving.
The digital transformation closes the gap between what digital customers already expect and what analogue companies really offer.
Digital transformation involves changing of management style, different way of thinking, encouraging innovation and new business models, integrating of digital assets and increased use of technology to improve the experience of employees, customers, stakeholders, suppliers, partners.
Definition 3 (wikipedia)
Although vague, it touches on how the effects of digitalization extend beyond business to society as a whole: “Digital transformation is the change associated with the application of digital technology in all aspects of human society.”
Why Digital Transformation is very important ?
A business needs to start implementing its digital strategy for a number of reasons. But by far, the most likely reason is that of survival in a business world that is rapidly transforming due to economic and cultural changes.
Companies that want to succeed need to understand that they need to merge technology with strategy. Business leaders have largely taken the message – and are giving it priority. Business executives recognize digitalization as a long-term investment.
Global spending on technologies and services that allow digital transformation will reach $ 1.97 trillion by 2022, according to IDC. This spending will increase steadily, achieving a five-year complex annual growth rate of 16.7% between 2017 and 2022. To date, 30% of companies worldwide have allocated budget capital equal to at least 10% of their revenue to feed their digital strategies.