The Hidden Dangers of Digital Transformation

Written by Jonny Baber on 22 Sep, 2023

“Digital Transformation” – everyone seems to be doing it. It’s a popular buzzword, but we see many organisations embark on their “digital” transformation journey without really knowing what it is they are trying to achieve.

So, what do we really mean by "Digital Transformation"?

A quick Google search tells us that “digital transformation is the process of using digital technologies to create or modify products, services, operations, culture, or customer experiences” and that the purpose of digital transformation is to “increase value through innovation, invention, efficiency, or customer satisfaction”.

That is all well and good, but what is “digital” in this context?

The truth is that it is often just a label used indiscriminately. It should describe a genuine digital shift (for example, where a company is evolving and creating new business models or new product offerings, not “simply” digitalising or automating an existing process) but the term is more regularly used generically to describe anything executives see as large-scale change. This subsequently creates a problem with many organisations dressing up “digital” to be something grander than it really is, or worse still - hiding behind the word “digital” without any clearly defined outcomes.

This misunderstanding can lead to “digital” for the sake of “digital”, with the intended transformation failing because of mixed messages and poor change adoption. What is left behind can be an organisation that is no better off, or potentially in an even worse state, than it was before embarking on the transformation journey - having spent a small fortune and lost some good people along the way.

Ultimately, it is vital to recognise that transformational change is a deeply human thing and that it is people who determine how quickly change happens, whether it is successful, and whether it lasts. “Digital Transformation” in a literal sense is unavoidable as the pace of technological advancement accelerates, but unless you take the time to fully understand what that means to your organisation, the risk of failure is high.

Let’s connect