Digital Transformation is a strategic endeavor. It involves a major change in the organizational culture, in its goals and objectives, its capabilities and business processes. And yes, at the very end of the road also a change in the supporting IT systems. Digital Transformation is not just about IT.

A business-driven approach

Digital Transformation is never initiated by IT. It is a business driven approach that transforms the way an organization works, thinks, and acts. The business must reorganize their internal (and sometimes external) information household for the transformation to succeed.

Digital Transformation has nothing to do with moving to the cloud, or the SaaS-ization of the application landscape. Perhaps this might be what will need to happen from an IT perspective, should the organization decide on moving forward with its transformation, but it is never a trigger. It is never a primary objective.

Digital Transformation is not about individual organizational facets, but about the collective effort to create more value from information assets.

I’ve co-authored an article with Omar Gawad about Enterprise Architecture and Digital Transformation and the burning question of what comes first. You can read it here.

Tomayto, tomahto

Many people (and organizations) find it difficult to distinguish between digitization and digitalization. In practice, both words are often used interchangeably, needlessly adding to the confusion. The following list highlights and explains the various manifestations of the word.

• Digitization: scan your physical assets to make digital copies; converting the data. In one word: conversion.
• Digitalization: convert parts of your operating model to computerize it; changing the processes and workflows. In one word: adaptation.
• Digital Transformation: convert your business model and value propositions from mostly physical to mostly digital. In one word: creation.

Siloed strategies

When the word digital comes to mind, almost every organization immediately thinks of IT. However, true transformation must come from within the organization. The organization’s strategy plays an important role. Digital Transformation actually means that an organization is changing its business model from the classic version to a more digitally driven version. And yes, this requires IT, but it is far from true that IT takes care of the entire transformation.

The foundation of the transformation is an integrated strategic approach. In today’s dynamic world, it is essential to view it as a holistic, business-driven endeavor where separate IT, data, service, or information strategies are insufficient. Having siloed strategies is not only ineffective, it is downright futile. Why is that? Because Digital Transformation is not about individual organizational facets, but about the collective effort to create more value from information assets.

Without a foundation…

The idea of a separate transformation strategy is like building a house without a solid foundation. Digital Transformation is about creating value through innovative services, a streamlined organization, and better decision making. It is a complex interplay of people, processes, and technology working together to take the organization to new heights.

A fragmented approach where IT, data, services and information go their separate ways is doomed to failure. It’s like trying to play a symphony without a conductor. An integrated approach is the key to success.

The need for digital transformation

Digital Transformation is not just part of the strategy, it is the strategy. A coordinated approach is necessary to achieve the synergy required for successful transformation. In the times we live in, an integrated approach to such a transformation is no longer a choice, but an absolute necessity. It is time to break down silos, unify strategies, and recognize that it is the driving force behind the future relevance and resilience of any organization.

Do you agree with my take on Digital Transformation, or perhaps not at all? Please leave me a comment in the comments section below.