The Myth of Digital Transformation
Thamer Shaker
CEO | Transformational Executive Leader | Board Member | Founder of MYSAN Consulting | Author of 11 Best-Selling Books |
A CEO, who had decided to undergo a digital transformation process, shared his excitement with me. "We've just finished purchasing the largest accounting system with full integration for all our internal operating systems," he said. As one of the expert in the field, senior executive and consultants responsible for leading the transformation process, I knew there would be challenges ahead. The CEO was determined to build a fully integrated digital environment and implement the strongest systems, no matter the cost, and that's where the disaster lies. There's a stark difference between digitization and digital transformation.
In today's digital age, many organizations are adopting new technologies and processes to improve their operations and stay competitive. However, there's often confusion between the terms digitization and digital transformation. The distinction is essential to understand when undergoing a digital transformation process, as failure to differentiate between the two can lead to costly mistakes.
Digitization involves converting analog information into a digital format. It refers to the process of scanning paper documents and converting them into digital files, or creating digital versions of physical products and services. Digitization is a necessary step for organizations to take in today's digital landscape, as it helps to streamline operations, increase efficiency, and reduce costs.
On the other hand, digital transformation is a strategic process that goes beyond digitization. It involves the integration of digital technologies into every aspect of an organization's operations, fundamentally changing how the organization operates and delivers value to its customers. Digital transformation is about rethinking business models, processes, and customer experiences to leverage the full potential of digital technologies.
While digitization is a crucial step towards digital transformation, it is not sufficient on its own. Simply converting paper documents to digital files won't fundamentally change how an organization operates. Digital transformation requires a comprehensive approach that involves a complete reimagining of how an organization delivers value to its customers, employees, and stakeholders.
In the case of the CEO who had just purchased a large accounting system with full integration for all their internal operating systems, it's important to note that this is a digitization effort, not a digital transformation. While it's a necessary step, it's not sufficient on its own to achieve a comprehensive digital transformation. To achieve digital transformation, the CEO would need to rethink their business model, processes, and customer experiences and leverage the full potential of digital technologies to create new opportunities for growth and innovation.
In conclusion, digitization and digital transformation are two distinct processes that organizations must understand to achieve success in today's digital landscape. While digitization is a necessary step, it's not enough to achieve a comprehensive digital transformation. To achieve true digital transformation, organizations must rethink their business models, processes, and customer experiences to leverage the full potential of digital technologies.?#ThamerShaker #????_????
COO at Tanzifco Co.(Kuwait) + ISSA/CMI Certified Professional Trainer + Cialdini Institute Certified Ethical Influence Practitioner + Speaker
1 年Absolutely right
Associate Director - Delivery Services
1 年While digitization is a crucial enabler, true transformation goes beyond digitization or any technology implementation. It involves cultural change, rethinking business models, and embracing new ways of working.
Senior Project Manager | Digital Transformation | ERP Implementation | IT Strategist | Empowering businesses to achieve seamless project execution ????
1 年Digitization and digital transformation are two distinct processes that organizations undertake to adapt to the digital age.?In summary, while digitization is an essential step in the digital landscape, digital transformation goes beyond it. Digital transformation is a strategic and comprehensive effort to reimagine business models and leverage digital technologies across the organization. It involves holistic changes and has a broader impact on the organization's operations and value delivery.
Digital Transformation | Banking Strategist | Leadership | Fintech | Cash Management | Product Development | Business Management | Sales | Business Processes | Partnership Management | Engagement & Corporate Excellence
1 年It is not a myth but also not new, it is the same automation revolution, then internet revolution, and now the digitization revolution. Sounds familiar!!! All these big disturbances needed to rethink the business model and associated processes. Also, to consider the new capabilities these revolutions bring to the table. In all these revolutions, the repeated problem is the disengagement of business management to these big changes. They see it IT issues, not business issue. Or in best scenario, assign a coordinator from business side to work with IT. This is why we see huge digital departments under IT sectors to change the business. How come!!! The real digital transformation starts by involving and engaging the business owners (top management) in the game. Make them understand the threats, opportunities, and the new capabilities and possibilities. Make them initiate, lead, and own the change. Only then real and genuine transformation will happen.
HR advisor
1 年Your absolutely right ??????????