If you are trying to get your head around the meaning of digital transformation, one of the first steps is distinguishing between a tool and the use of the tool.
It’s obvious that digital transformation must include and be defined by digital tools, data, and experiences. But, a common trap is to restrict the transformation to digital, when in fact,
transformation is not about digital, it’s about business.
That’s why we like to use the term digital business innovation instead of digital transformation to describe what CIOs need to drive now.
Digital business innovation is the use of digital foundations- pillars, processes, and tools- to transform how businesses create value.
The digital opportunities and threats that business leaders face today demand the same aggressive approach to business transformation that past business revolutions required. A hundred years ago, companies were transforming their businesses by switching their power sources from inside their own factories to using external electrical utilities. This transformed manufacturing just as materially as digital business innovation will transform many industries in the coming years.
More recently, business process reengineering and ERP added transformational control and productivity to many enterprises large and small.
At the heart of all of these transformations, companies found better ways to do things that either made existing business models vastly more efficient and profitable or introduced fresh business models that fundamentally changed industries and created new ones.
What makes digital business innovation different is that digital foundations vastly improve our ability to radically reimagine and deliver remarkable user experiences, turn value chains on their heads and
to meet the imperative to create value in wholly new ways.
This requires CIOs, LoBs and other CXOs to innovate collaboratively on new digitally-driven value and supply chains, customer engagement, operations, and smart, connected products.
There’s no time to waste, as companies like Über, Amazon and GE drive fast, profound change in their firms and entire industries.
Digital business innovation cannot happen without an excellent digital business innovator.
Over the years, we have helped many business leaders seize the opportunities created by technology to drive profound change in their organizations and partner ecosystems.
Look for more information on the practical keys to successful digital business innovation in upcoming posts.