Digital transformation is the coordinated digitalization change efforts at scale, diffused through the operating model and all aspects of the business, including people, processes, technologies, and metrics. The goal of this is to bring meaningful outcomes to the organization.

1. HOW TO BECOME A
DIGITAL
TRANSFORMATION
EXPERT IN 6 SIMPLE
STEPS?
WHY IT IS IMPORTANT IN TODAY'S TIME?
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2. m*04/10
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What is Digital?
The term digital is used in many ways these days, but
what does it really mean? There are a variety of terms
related to this that are noted, such as digitization,
digitalization, digital transformation. Are these the same
thing? Let us offer some definitions, as well as examples
of each.
Digitization
Digitization is the conversion of analog or physical information to a
digital format. Think of it as converting atoms to bits, creating
digital opportunities in the process. Think of paper instruction
manuals.
Converting those from physical paper to a digital format represents
digitization.
Digital Transformation
Digital transformation is the coordinated digitalization change
efforts at scale, diffused through the operating model and all
aspects of the business, including people, processes, technologies,
and metrics. The goal of this is to bring meaningful outcomes to
the organization.
Digitalization
Digitalization is the use of digital technologies and digitally-enabled
approaches to enable or improve business models and processes.
Think of this as the process of exploiting digital opportunities. For
example, using smart glasses to provide mechanics with line of
sight digital instructions can improve efficiency and reduce errors.
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3. 02
The Digital Revolution
To understand this let's start with a story:
1. The best performing stock of the 1980s in the U.S. stock market was Circuit
City. The company had revolutionized customer experience in the consumer
electronic space.
2. The centerpiece of the company's success was superior customer service. In
the 1990s, the company used its financial power to start other companies,
including a technology firm.
3. Only eight years later, the company was liquidated. What happened? In the
1990s, when Circuit City was starting other companies, Best Buy, its biggest
competitor in the consumer electronic space started the Geek Squad, creating
even better customer service through in-home installation.
4. In the 2000s, Amazon entered the consumer electronic space and Circuit City
did not catch the digital train at all. Seemingly out of nowhere, there was a
retailer with no stores and no easy way to speak to a live person who
understood our preferences so well. In roughly 20 years, the former leader in
the retail industry, Circuit City, went from good, to great, to gone.
5. The mighty are falling even faster now, as the average tenure of the S&P 500,
which was 61 years in 1958, is less than 16 years today. Also, the average
Fortune 500 business takes roughly 20 years to reach a billion dollar
evaluation. Uber, WhatsApp, Snapchat, Oculus Rift, each took less than four.
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4. 03
Why Digital
Transformation?
Digital transformation may seem like a new buzzword for an old topic. Digital
transformation is a leading force in business today. In some cases this is driven by so-
called digital native organizations wreaking havoc on older companies in an industry.
In some cases those older companies are seizing the opportunity before the change is
forced upon them. Whether it's based upon employing a shrewd offense or cautious
defense, this change will impact all companies.
But what is digital really? Who should own it within the enterprise? What processes
and technologies are necessary to bring it to life. Let's try to answer some of these
questions in the coming sections.
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5. 04
COMPONENTS OF DIGITAL
TRANSFORMATION
FROM THE STORY ABOVE IT'S CLEAR THAT DIGITAL IMMIGRANT ORGANIZATIONS, THOSE
WHO WERE BORN PRIOR TO THE DIGITAL AGE, NEED TO THINK MORE LIKE THE DIGITAL
NATIVE COMPANIES, LIKE THE ONES I'VE JUST MENTIONED.
DIGITAL TRANSFORMATION REQUIRES FOUR THINGS.
Culture Modern Solutions
Innovation Transformation
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Culture
05
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This requires hiring for and encouraging learning agility
among your employees. New technologies and techniques
emerge much faster than in the past. The technology that
one is comfortable with today may be obsolete tomorrow.
Will your employees be willing to retrain on the more
modern technologies and techniques?
Modern Solutions
Second, it's necessary to use modern solutions, such as
Cloud and mobile-enabled technology rather than
mainframe technology of the past.
This internal component of digital transformation is often
an afterthought. But not taking these first steps can mean
that you'll be a victim of your own success, unable to reap
the rewards that higher demand might bring.
Innovation
It's necessary to develop or hone an edge-based
innovation function. This entails developing or recasting
an existing research and development arm. Seeking new
business opportunities that exploit digital technologies at
the edge of current product or service offerings, or
perhaps in adjacent spaces to the current offerings.
Transformation
Fourth, the rest of the business should think further about
how digital opportunities can transform the core business.
An eye toward better customer experience through digital
channels should be paramount, as customers expect
easier, intuitive, and compelling digital experiences when
they become more sophisticated.

7. Example of Digital
Transformation
Integration of various digitalization initiatives, such
as augmented reality guided instructions, 3D printed
tools that have Internet of Things-enabled sensors
connected with them can result in the fundamental
transformation of the manufacturing process.
For example, New York Times which started as a
newspaper print company has reoriented itself as a
digital first organization, having increased digital
subscriptions 418% between 2011 and 2016. And the
company's on track to hit $800,000,000 in digital
revenue by 2020.
By clearly delineating different digital concepts, the
New York Times was able to formulate a digital
transformation strategy to respond to digitization in
its industry more effectively than any other
publication.
As you can see, there's a
logical sequence from
digitization, to digitalization,
to digital transformation.
It's important to understand
the differences,
communicate them
effectively, and chart the
progress you and your team
are making.
m*04/10
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8. stages of digital
transformation
Digitally active companies take advantage of the transactional, digital or e-commerce
solutions to increase revenue. Combined with a basic level of analytics and operational
improvements such as the introduction of agile development methods, organizations in
this tier are beginning to utilize the peripheral advantages of a digital organization.
These organizations develop metrics or key performance indicators to gauge their
progress or lack thereof as well and use that as the basis of further improvements.
Digitally competitive organizations push the envelop on how digital solutions and
processes can be utilized to not only drive revenue but also to help forecast future
needs and respond quickly to identified gaps.
Only a few organizations in the world are truly digitally mature. And those are the likes
of Google, Amazon, and Facebook. They're requiring droves of artificial intelligence
talent from around the globe to fuel their growth. You need not have as a goal to
become a digitally mature organization but it is useful to understand some of the
differentiating factors in growing as a digital organization so you know what to shoot
for as the company advances. Greater levels of maturity are likely to translate to
greater levels of value.
07
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9. Steps for Digital
Transformation
01
FIRST, CREATE A MANDATE FOR
CHANGE. HIGHLIGHT THE CURRENT
STATUS OF TECHNOLOGY, THE RISKS
OF NOT MODERNIZING, AND THEN
PAINT THE FUTURE PICTURE WITH
RELEVANT ADVANTAGES NOTED.
02
SECOND, DEVELOP MORE LOOSELY
COUPLED TECHNOLOGIES SO THAT
CHANGES TO ONE PLATFORM CAN BE
MADE INDEPENDENT OF OTHERS. THIS
INCLUDES USING MICROSERVICES
AND CONTAINER TECHNOLOGIES.
03
THIRD, DEVELOP A CLOUD-FIRST
STRATEGY. CLOUD TECHNOLOGY IS
MORE FLEXIBLE, SCALING UP AND BACK
AS NEEDED. IT IS ALSO MORE
VARIABLIZED FROM A COST
STRUCTURE, WHICH MEANS PAYING
FOR THE TECHNOLOGY YOU USE
RATHER THAN BUYING MORE THAN YOU
NEED.
04
FOURTH, LEVERAGE ENTERPRISE
ARCHITECTURE, APPLYING
ARCHITECTURE PRINCIPLES AND
PRACTICES TO DOCUMENT AND REFINE
THE BUSINESS INFORMATION, PROCESS,
AND TECHNOLOGY CHANGES
NECESSARY TO EXECUTE STRATEGY.
05
FIFTH, RETIRE OLD TECHNOLOGY. MANY
COMPANIES ARE GREAT AT
INTRODUCING THE NEW, AND THEY'RE
OFTEN POOR AT ELIMINATING THE OLD
AND REDUNDANT.
06
LASTLY, STANDARDIZE AS MUCH
TECHNOLOGY AS POSSIBLE. EVEN IF
YOU HAVE DIFFERENT BUSINESS UNITS,
IT IS ALWAYS BEST TO ADAPT THE
COMMON CORE TECHNOLOGY FOR THE
OVERALL ORGANIZATION.
08
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10. HOW TO PLAN FOR DIGITAL
TRANSFORMATION?
You've probably gotten the sense that the pace of change in
the new digital world is faster than ever. That's true, and it
will only get faster. How does planning work under those
circumstances? Does a three or ten year plan that some
companies prefer still apply? Does it mean the plans should
be investigated more frequently? The answer is both.
It's true that shorter strategic planning cycles are necessary.
For instance, the plan you set a year ago might be partially
moot if, for example, the technology or processes that are
being implemented as a result of the strategy are rendered
obsolete by new technologies or processes.
09
There are four steps that we would advise
undertaking.
1. Investigate the art of the possible regarding
innovative new technologies.
2. Work with customers to develop new plans on
how digital technology will enhance customer
experience.
3. Identify outgrowths of the current strategic plan.
4. And finally, refresh your plans frequently.
Companies fail to create the future not because
they fail to predict it, but because they fail to
imagine it. It is creativity and curiosity they lack, not
perspicuity. Experimentation, together with solid
strategic planning is the winning recipe.
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DIGITAL TECHNOLOGIES TO BECOME
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