‘Digital Transformation’ is More Than Conducting More Online Meetings
“The difference between transformation and change is that after a transformation there is no residue of the past.” — Sadhguru
Digital Transformation is a process to fundamentally shift the way organizations make money and operate using digital technology. If your organization is not undergoing or considering a fundamental shift in the way products or services are offered then you might be embracing digitalization but not a digital transformation in the intended use of the term.
Many organizations internally have switched from in-person meetings to online Zoom calls due to physical distancing required by the COVID-19 epidemic. Others are externally engaging their members, customers, and constituents more online now. As a result, some organizations claim they have finally succeeded at the much-desired goal of digital transformation (and lucky for them at low-cost and with few trade-offs). But what most of these organizations should be celebrating is their embrace of the internet. This is not the same thing as digital transformation.
Examples of true digital transformation,
- The automobile industry investing in self-driving cars and considering a shift from selling individuals cars to more of a subscription-based payment model (i.e. robotaxis).
- The healthcare industry using big data analytics and genetic testing to diagnose illnesses earlier and revolutionizing preventative medicine.
- An advocacy organization using machine learning and narrative testing to appeal to new audiences to expand the reach and impact of their mission.
All of these examples are about new shifts in direction or strategy made available thanks to digital technology. This is not the same thing as moving in the same direction and strategy but being forced to conduct more business online because of COVID-19. If you are considering strategic shifts which, implies reallocated resources and careful consideration of trade-offs, then you might be on the path to a true digital transformation.
For more information on this theme check out Chapter 2 in Thomas M. Siebel’s book, “Digital Transformation: Survive and Thrive in an Era of Mass Extinction”.
