DIGITAL TRANSFORMATION

By taking a bionic approach, blending human and technical capabilities, companies can kick their digital transformation into gear—and keep the momentum going.

Digital transformation is the integration of digital technology into all areas of a business, fundamentally changing how you operate and deliver value to customers. It’s also a cultural change that requires organizations to continually challenge the status quo, experiment, and get comfortable with failure.

Many different paths lead to digital transformation and each organization’s journey will be unique. For example, a company might introduce AI or cloud computing to enhance its customer experience. Or it might redesign its supply chain to make better use of machine learning. A company can even make spot-on predictions about the products customers will want in a few months’ time, then shift production to meet demand.

In every case, though, starting a digital transformation journey requires a new mindset. It is a chance to reimagine how companies do things, often from the ground up.

Two concepts related to digital transformation aredigitizationanddigitalization.

Digitizationis the process of translating analog information and data into digital form—for example, scanning a photo or document and storing it on a computer.

Digitalizationis the use of digital technologies to change business processes and projects—such as skilling employees to use new software platforms designed to help launch products faster. While digital transformation might include digitalization efforts, it goes beyond the project level and affects the entire organization.

For most companies, digital transformation requires a shift away from traditional thinking and toward a more collaborative, experimental approach. These new ways of approaching work reveal new solutions which, in turn, can improve customer experience, drive employee innovation and spur company growth at the fundamental level.

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