Digital transformation
Adoption of digital technology by an organisation / From Wikipedia, the free encyclopedia
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Digital transformation (DT) is the process of adoption and implementation of digital technology[1][2][3] by an organization in order to create new or modify existing products, services and operations by the means of translating business processes into a digital format.
The goal for its implementation is to increase value through innovation,[4][5] invention, improved customer experience and efficiency.[1] Focussing on efficiency and costs, the Chartered Institute of Procurement & Supply (CIPS) defines digitalisation as
the practice of redefining models, functions, operations, processes and activities by leveraging technological advancements to build an efficient digital business environment – one where gains (operational and financial) are maximised, and costs and risks are minimised.[6]
CIPS has also observed that "digital capability" can be used to support supply chain transparency and remote working.[6]
However, since there are no comprehensive data sets on the digital transformation at the macro level, the overall effect of digital transformation is still too early to comment.[7]
A useful incremental approach to transformation called discovery-driven planning (DDP) has been proven to help solve digital challenges, especially for traditional firms. This approach focuses on step-by-step transformation instead of the all-or-nothing approach. A few benefits of DDP are risk mitigation, quick response to changing market conditions, and increased success rate to digital transformations.[8]