THE 3Ds - Digitisation, Digitalisation, and Digital Transformation (DX)

Digitisation, digitalisation, and digital transformation are three methods organisations have been using to evolve their business models, structures, operational practices, and recruitment and employee skillsets. Although it must be noted that the terms digitisation and digitalisation have been used interchangeably within the literature leading to some confusion within the research (1, 2). Over the past two decades advancements in technology as well as the increased availability of and reliance on data to make more informed business decisions has seen organisations rapidly transition from practices?of digitisation to?digitalisation before embarking on a?digital transformation journey. But what do these terms mean??

Digitisation: is the process of converting data from analog to a digital form and is now customary practice in the day-to-day business operations of most organisations as it has been demonstrated to be a key driver of business growth and sustainability (3).

Digitalisation: has been defined as the integration of the analog and digital worlds by leveraging technologies to enhance customer interactions, data availability, and business process (1).

Digital transformation (DX): is more complex as it not only harnesses new digital technologies, it also consistently uses modern technologies as drivers of cultural change laterally and vertically across an organisation (4). In saying that redefining the operational and strategic practices of a whole organisation is a challenging prospect which will call for strong leadership, consistent communication, collaboration and empowerment of organisational leaders across all levels of the business. So where do we start?

Communicate the Vision?

• Senior figures within the organisation must consistently communicate the new strategic vision to improving digital practices within the business to all stakeholders from the board room to entry-level.
• These new practices may impact all aspect of the business from organisational and team structures to operational practices as well as recruitment and staff training practices.
• By holding regular updates on the development, progress, and integration of new digital practices within the organisation key stakeholders are provided with a more in-depth understanding of the evolution of their business.
• An additional benefit of clear and consistent communication from senior leaders can lead to the cross-pollination of knowledge and learnings between different departments and levels of the organisation whilst also fostering a culture of collaboration within the organisation.?

References?

1. Eling, M. and Lehmann, M., 2018. The impact of digitalization on the insurance value chain and the insurability of risks. The Geneva papers on risk and insurance-issues and practice, 43(3), pp.359-396.

2. Reis, J., Amorim, M., Mel?o, N. and Matos, P., 2018, March. Digital transformation: a literature review and guidelines for future research. In World conference on information systems and technologies (pp. 411-421). Springer, Cham.

3. Bleicher, J. and Stanley, H., 2016. DIGITIZATION AS A CATALYST FOR BUSINESS MODEL INNOVATION A THREE-STEP APPROACH TO FACILITATING ECONOMIC SUCCESS. Journal of Business Management, (12).

4. Expert Group on Future Skills Needs, 2018. Digital Transformation: Assessing the Impact of Digitalisation on Ireland's Workforce. Department of Business, Enterprise, and Innovation.