Introduction to Digital transformation

Digital transformation refers to the strategic adoption of technology across a business to drive significant change, resulting in greater efficiency, agility, and unlocking new value for employees, customers, and shareholders.

There are multiple ways to achieve digital transformation, and each organization's journey will be different. For instance, a company may use AI or cloud computing to enhance the customer experience, optimize its supply chain with machine learning, or make accurate predictions about customer demand and adjust production accordingly.

Embarking on a digital transformation journey requires a shift in mindset, regardless of the specific path taken. It presents an opportunity to rethink the way companies operate, often requiring a complete overhaul from the ground up.


Digitization and digitalization are two Interrelated concepts related to digital transformation.

Digitization refers to the process of converting analog data or information into digital form, such as scanning a document and storing it on a computer.

Digitalization refers to the use of digital technologies to transform business processes and projects, such as upskilling employees to use new software platforms to improve efficiency. While digitalization is a key part of digital transformation, it is focused on specific projects or processes, whereas digital transformation impacts the entire organization and requires a broader mindset shift.

To achieve digital transformation, most companies need to move away from traditional ways of thinking and adopt a more collaborative and experimental approach.

By doing so, they can discover new solutions that can enhance the customer experience, stimulate employee innovation, and drive fundamental growth for the company.

Why is digital transformation important?

Before the COVID-19 pandemic, digital transformation primarily focused on improving customer experience. However, with the pandemic's arrival, everything changed and accelerated. Today, digital transformation is at the forefront of operational efficiency and innovation for organizations. CEOs recognize the opportunity and feel the pressure to make changes happen in shorter waves than ever before.

According to the latest survey, accelerated digital transformation, including cloud and data, is the top priority for CEOs to discuss with the board since the pandemic hit. Research shows that companies leading in enterprise technology are growing twice as fast as others, and by increasing their tech investments, they are now growing five times faster.

These leaders leverage cloud technologies, including AI, to outperform their competitors. They adopt innovative technologies faster and reinvest more frequently, directing their IT budgets towards innovation. The benefits of these investments include increased revenue and growth and the ability to stay ahead of the curve.

Companies leading in enterprise technology are growing twice as fast as others, and by increasing their tech investments, they are now growing five times faster

Digital transformation strategy

To drive significant change in an organization, a well-defined plan is necessary. There are typically five key areas that companies must address, often simultaneously.

Business operations realignment
The second area is business operations realignment, which includes transforming business processes and adopting new ways of working for agility and experimentation.

Adoption of new practices for agility and experimentation
The third area is adoption of new practices for agility and experimentation, which involves introducing new ways of working coupled with modern engineering capabilities to meet customer expectations and drive innovation.

People change management
The fifth and final area is people change management, which involves building a digitally skilled workforce, fostering a culture aligned on new technologies, and addressing new challenges and opportunities presented by technology in the workplace. By addressing these five areas, companies can drive sustainable change and achieve successful digital transformation.

Technology core for sustainable change
The fourth area is a technology core for sustainable change, which entails staying nimble and flexible to catalyze innovation and form ecosystem partnerships that drive speed and scale.

Business strategy transformation
The first area is business strategy transformation, which involves putting technology at the core of business strategy to reduce operating expenses and inefficiency, and to achieve future ambitions.

Enabling digital transformation

Cultivate your partner ecosystem
According to our study in the high-tech and software industry, 89% of partners are seeking new opportunities for growth and operational efficiency.

Think of it as business transformation
Prioritizing customers is crucial during any transformation, and companies should begin by identifying areas where customers may be experiencing difficulties or obstacles, such as in equipment sales, parts, service, or other aspects of the business. Many companies are undertaking significant transformations as they adapt to changing market conditions and seek to reinvent themselves.

Fund it as an investment
Digital transformation requires a strategic and step-by-step approach when it comes to funding. In the short term, companies can start by assessing digital opportunities and requirements across the customer journey, and then choose a specific challenge that aligns with their investment goals and desired outcomes. This approach can help organizations to optimize their technology investments, self-fund innovation, and eliminate barriers to change.

Break down barriers to change
Focusing on customer challenges can facilitate the breakdown of functional silos as it often requires collaboration between multiple departments to share information and find solutions that prioritize a positive customer experience.

Encouraging experimentation and fostering a culture of innovation are crucial steps in promoting agility during a transformation