“It” is digital transformation. Personally, I don’t get it, because:
- If “digital” means “computerized,” we’ve all been “digitally transformed” a bunch of times since the 1960s. (Think mainframe, minicomputer, client-server, Web, and now mobile, social, cloud and Big Data.)
- And as for transformation, as I’ve argued repeatedly, this is meaningless jargon unless you say what you’re transforming yourself from and to. Much of the time, “transformation” is just a fancy word for saying “better” or “cheaper.”
Go With the Flow, Bob
Rather than fight the tide, maybe I should accept that “digital transformation” is popular because it speaks to what my clients are trying to tell their prospects. Let’s try riding the wave instead, based on several of the definitions floating around out there:
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Note that, while there are common themes across definitions, how much room there is for differentiation based on each specific definition, and the specific strengths you bring to the market.
Breakthrough! Transformation Defined
By making its definition very specific (“The realignment of, or new investment in, technology and business models to more effectively engage digital customers at every touchpoint in the customer experience lifecycle” the Altimeter Group was able to craft a customer survey that uncovered specific, rather than vague, implementation issues.
The “process,” rather than technical issues, uncovered (below) seem to make digital transformation an easier pitch for consultants than hardware or software-centric players, unless they can describe specifically how their skills in areas such as Big Data or business intelligence help organizations better understand today’s mobile and socially-connected customers.
Even One Word Can Help
All this is well and good if you and your prospect agree on a definition for digital transformation. If you don’t bother defining it, or define it only vaguely, you’re inviting your customers to misunderstand what you’re offering.
nJust changing one word – “digital transformation” to “IT transformation” – means you’re talking about, as Accenture puts it, the need to “…identify which IT capabilities are most critical to the success of the overall enterprise, and shape an IT organization and capability that supports the business cost-effectively.”
That’s what most of my clients mean by “transformation” and it usually boils down to reducing costs through things like virtualization, data center consolidation, and training lower-level or lower-cost offshore staff to handle more complex support requests. That’s all well and good, but it doesn’t deliver the unified customer experience and universal market insights “digital” transformation implies.
Does any of this clear up all this transformation talk or just make it confusing in a new way?