IN 2021, $ 1.5 trillion was spent globally on digital transformation, and investment in this area is expected to reach $ 6.8 trillion by the end of 2023. 70% of companies have a digital strategy or are currently working on one, while 87% of leaders believe that digital transformation will disrupt their industry. Although digital transformation is the most popular business strategy of the moment, which promises to increase customer efficiency and experience, it has had a success rate of less than 30%, according to a Zippia report published in 2022.
Digital transformation vs. technological transformation
According to Simona Pavelescu, CEO of htss, a company specializing in the development of business software products for health industry, after the COVID pandemic, more and more companies have realized that a certain transformation is needed in the digital area, one that takes into consideration the maturity of the business first, and only later the industry in which it operates. Some companies call it digital transformation, while others label it as IT transformation. In the following lines we wil find out if these two are similar or completely different things.
„I recently read an article that defined Digital Transformation as being “software empowered, and customer driven,” and I truly resonate with the idea. In other terms, digital transformation is a strategic direction / change / transformation of business (must be enabled/supported from the top) and stresses the idea that customer preferences and behaviors must have a big say regarding the organization’s technology. Although the term „digital” makes us think first of technology, in reality, this transformation refers to a change of processes, business model and culture. Technology is the second layer, a facilitator of the elements mentioned above. In other words, if technological transformation is an upgrade of the infrastructure, digital transformation is an umbrella term for structural changes throughout the company,” Simona Pavelescu points out. read the rest here