Business Transformation Vs. Digital Transformation: A Thin Line of Difference!
Transformation is today’s buzzword for every industry, meaning it’s time to up capabilities to meet the changing market demands. In a fast-paced environment where opportunities and technology are ever-changing, evolution is key to the success of any brand. It takes constant assessment, adjustment, and progress to stand out from competitors.
But what exactly does it mean to transform? Are business and digital transformations services the same thing? And if not, which is more crucial when it comes to business transformation vs digital transformation trends?
The short answer is that digital business transformation is a part of a larger business transformation, but each has unique subtleties that brands need to embrace.
Two terms that make this word more powerful are Business and Digital. Both fall under ‘demand of the day and the ‘need of the hour’ for almost every organization globally.
What is Business Transformation?
Business Transformation is a change management strategy that aligns people, processes, and technology to the organization’s core business objectives and future vision. Such a transformation naturally drives innovation and paves the way for new business strategies.
Business transformation often refers to major corporate objectives, such as becoming a truly customer-centric firm, gaining strength as a serial acquisition, expanding into a worldwide partner, or becoming an agile corporation.
Business transformation consultant denotes a significant change in the way a company operates business. It entails adjustments to structures, incentives, mindset, processes, habits, core capabilities and technology. Some of the digital transformation technologies include IoT, robotics, artificial intelligence, virtual reality, drones, etc,
What is Digital Transformation?
The goal of digital transformation challenges is to alter how business is conducted using digital transformation tools and platforms. It obviously includes aspects of business transformation, although business transformation might not always be about digital platforms. Digital transformation company guides your business objectives.
Whereas Digital Transformation (DX) is the process of implementing digital initiatives, The focus of enterprise digital transformation consulting is on what businesses can do to become more digitally enabled, including technology for bringing in a new wave of change in the way:
- Business and processes are held
- End-user interacts with the business/product for customer satisfaction
- Culture is developed/built organizational-wide, cross-functionally
The two transformations are different but go hand-in-hand for a successful business process transformation.
How do Digital Transformation and Business Transformation Help?
As tools and integrated systems improve process efficiency and data accessibility, digitization has become the norm. It became synonymous with “business change” since the adoption of digital transformation solutions is always associated with technology implementation, operational effectiveness, and business model optimization, the term has come to mean “business change.” As a result, even minor platform upgrades can result in major IT transformation, requiring user training, data migration, extensive testing across integration bridges, business approval, and potential interruption upon implementation of the new solution.
The best digital technology in the world won’t help with business transformation or digital transformation companies if it isn’t adequately integrated into the larger operations of the business. After all, enhancing an inadequate customer experience with digital channels would only make it worse.
DX and Business Transformation are the two most discussed terms as an effective means to drive business success.
They primarily help in:
- Overcoming emerging market challenges
- Leverage and capitalize on technology potential
- Enhanced business functioning
- Better service delivery
Organizations need both the DX and business transformation in the current scenario of improved regulations, increased globalization, and a dynamically changing technology landscape.
While business transformation consulting typically focuses on business and go-to-market models, digital transformation brings initiatives and technologies to support those efforts.
Why do Transformations fail?
The first and foremost reason behind business failure in implementing transformations is ‘misconception.’ The most common misunderstanding is ‘over-focus’ on technology as the first step.
Undermining the cultural significance, most organizations prefer technology first to understand the existing gaps. But the fact is that technology implementation success only happens on solid fundamentals.
So, the success of these transformations is solely dependent on the following factors:
- Organizational Readiness
- Employee openness and preparedness to change
- Management’s perspective of the company
- Change in marketing and sales strategies
- Change in supply chain management
Business and Digital Transformation Advantages
Many leading global surveys say that successful digital and business transformations promise:
- Better customer experience
- The rise in customer revenues
- Intelligent automation
- Effective decision-making
- Ability to attract new talent
- Improvement in employee morale
- Enhanced web and mobile engagement
- Healthy competition
- Reduced time to market
- Improved thought leadership
Differences Between Business Transformation and Digital Transformation
Business and digital transformations strategies are fundamentally dissimilar from one another. The key variations are shown in the following table:
|Parameters||Business Transformation||Digital Transformation|
|Definition||Business transformation is the initiative to alter the business model in order to make significant changes to the organization.||The goal of digital transformation platform is to use digital capabilities to modify company operations fundamentally.|
|Focus||The primary goal is to transform the company through a new business model. A company’s offerings, values, and identity are frequently fundamentally altered.||The primary goal is to improve the company’s digital capabilities in order to accomplish its stated business goals, resolve issues, and seize opportunities.|
|Sponsor||A business Transformation initiative should be sponsored by the CEO (or an appropriate executive).||A Digital Transformation program should be sponsored by the CTO (or an equivalent).|
|Scope||A business transformation program may include digital transformation.||Ideally, the business model shouldn’t be impacted by digital transformation strategy.|
|Trigger||The few potential triggers for business transformation include the following:
1. Significant changes in client perception, trend, and demand
2. Company offers might not be pertinent
3. Modification in the environment (business, social, and political)
4. Inability to sustain growth long enough to maintain operations
|The few potential triggers for digital transformation services include the following:
1. Utilize technology as it exists to your company’s advantage.
2. Use digitalization to address business issues
3. Enhance its stakeholders’ experience (customers, suppliers, employees)
4. Enhance transparency
5. Enhance business efficiency
Looking for a perfect partner who can help you with the complete transformation? This is where Veritis comes in, the Stevie Award winner. Veritis can help you! We have successfully helped many companies, including Fortune 500 firms, digital transformation framework and at the enterprise level. Today, they can deliver excellence and can adapt to changing trends quickly.
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