Debunking Digital Transformation Myths

Question 1?

Digital transformation and digitization are the same thing

Digitization is a change in the form while keeping the essence intact (as is). when you ask someone: “Do you have a change for a dollar,” how much do you get back in coins? One dollar, right? The essence is the same, but the form has changed. You still get value out of change (you could use coins for parking meters, slot machines, vending machines, etc.)

When companies digitize or digitalize their business, they acquire digital equipment such as workstations, printers, scanners, and associated SW programs to perform tasks that were done manually. Paper forms are digitized but the process or the essence remains the same

To implement digitization, companies implement finite and well-defined initiatives. Their focus is on executing a well-defined shift in the way things work.

Transformation doesn’t focus on well-defined shifts in the way companies do business but instead on a portfolio of initiatives that are interdependent or intersecting and cutting across the organization.?

More importantly, the overall goal of transformation is to reinvent the organization and discover a new or revised business model based on a vision for the future.

Example

MP3 is an example of digitization; People used to listen to their music on Walkman or Discman. MP3 “changed” that and introduced “digitization” of music, so people were able to download their music on small gadgets, carry them around and enjoy their music.

iPod, on the other hand, is an exciting story of “transformation.”. Apple transformed the essence of the music industry.?

·??????They created a new business model where a song is an entity that is priced individually and sold. To do this, Apple had to sign agreements with record companies and commit sales numbers.

·??????Apple had to create a store where buyers can browse and buy songs.

·??????They created iTunes SW, where users store their songs for later use.

·??????Users could access their iTunes content from their iPods, iPhones, and personal computers.

A total transformation that created value beyond just changing the form (MP3)

Remember: A snake shedding its skin is a?change. A caterpillar becoming a butterfly is a?transformation.