Pablo Frindt, Chief Digital Officer, with over 19 years of experience in the Financial industry and Digital Transformation, invites us to discuss and reflect on what Digital Transformation is.
It all starts with a very simple question: what is a transformation process in a company? (let’s leave out the digital part).
A statement that generally generates consensus to start the conversation is: “it is a significant, directed change with a specific business objective, which impacts the way the company operates to improve its performance, adapt to market demands, and endure”.
This change, like many that occur in organizations, can be generated internally by the company or may emerge with the help of external consultants; but the objective of the transformation will always be to ensure that the company can compete successfully in its business environment.
Regardless of sectors or specializations, the current business ecosystem drives organizations to consider factors such as innovation, operational efficiency, variable profitability, and overall, a changing and evolving environment.
Now let’s return to the concept of “digital transformation” and see how they relate and what sets them apart. We agree that business transformation requires a “specific business objective” or strategic initiative to change the way the company operates and that as a result, the changes will impact organizational structure, internal processes, business model, and culture.
On the other hand, digital transformation often focuses on the incorporation of technology into the company to improve efficiency, productivity, and/or customer experience. Digital transformation can also involve the adoption of enterprise management software, process automation, data analysis, or even the implementation of digital sales channels.
I invite you to reflect on some conclusions – which I am sure you are already making – regarding the differences:
In terms of focus: business transformation focuses on the business in general, while digital transformation specifically focuses on technology.
In terms of scope: business transformation may involve changes in all aspects of the business, while digital transformation usually focuses on the adoption of technology.
We invite you to continue delving into this topic under the theme “Is there a difference between business transformation and digital transformation?” in the following article or in our ebook:
