Automation
The process of automating work. For example, an ecommerce firm that automates the process of assembling orders at a fulfillment center.Ecommerce
Selling through digital channels such as websites, apps or game environments.Procurement
Procuring products and services through digital channels.Cost Reduction
Cost reduction such as replacing your own IT infrastructure and software with vendor platforms that benefit from far greater economies of scale.Remote Work
The telecommuting tools, training and culture required for employees to work from home, customer locations, business trips and emergency locations.Business Process Outsourcing
Outsourcing entire processes that you don't view as a competitive advantage. For example, outsourcing desktop and mobile help desk and support. This is usually viewed as digital transformation as it usually involves digital integration with a partner.Productivity
Increases in productivity. For example, replacing six systems with inconsistent data with a single system with high quality data.Digital Marketing
A broad term for the use of automation, digital tools and channels for marketing. For example, salespeople who use social media to build relationships with prospects, opportunities and existing customers.Digital Advertising
Reaching target markets and individual customers in the digital environments where they spend time.Self-Service
Providing self-service tools for customers. For example, a tool to pick your actual room when you reserve a hotel.Digital Communication
Communication through digital channels such as a public relations team that engages stakeholders in social media.Visibility & Transparency
Discovering and communicating valuable data to management and external stakeholders. For example, a data center operations team that provides monthly and annual reliability statistics to procurement teams so that they can provide vendors with a scorecard and avoid repurchasing low quality equipment.Data Acquisition
Obtaining data from external sources that may be widely useful. For example, daily price data for a competitor's products by channel.Research
Original competitive and market research. For example, digital surveys to gauge customer perceptions of a brand.Risk Management
Treating a risk with digital platforms. For example, deploying cloud-based cold standbys of key infrastructure as part of business continuity planning.Partner Integration
Integrating with partners to improve processes or revenue. For example, automatically providing full product descriptions and media such as photos and videos to ecommerce partners.Billing & Payments
Digital billing and payments. For example, a utility that integrates with hundreds of banks using a common platform such that customer bills automatically appear in the bill payments section of banking websites and apps.Products & Services
Marketing digital versions of products and services. For example, an app that integrates with a pair of running shoes to collect and communicate performance data.Notes
Digital transformation originally meant the process of replacing paper and manual processes with digital equivalents. This has become a dated view as firms that have long abandoned paper view digital transformation as a move to new platforms, approaches and markets.| Overview: Digital Transformation Strategy | ||
Type | ||
Definition | A plan to modernize a business to leverage new possibilities offered by digital technologies. | |
Related Concepts | ||
