Digital transformation is the adoption of
digital technology by an organization to digitize non-digital products, services or operations. The goal for its implementation is to increase value through
innovation
Innovation is the practical implementation of ideas that result in the introduction of new goods or services or improvement in offering goods or services. ISO TC 279 in the standard ISO 56000:2020 defines innovation as "a new or changed enti ...
, invention, customer experience or efficiency.
History
Digitization is the process of converting
analog information into digital form using an
analog-to-digital converter, such as in an image
scanner or for digital audio recordings. As usage of the
internet
The Internet (or internet) is the global system of interconnected computer networks that uses the Internet protocol suite (TCP/IP) to communicate between networks and devices. It is a '' network of networks'' that consists of private, p ...
has increased since the 1990s, the usage of digitization has also increased. Digital transformation, however, is broader than just the digitization of existing processes. Digital transformation entails considering how products, processes and organizations can be changed through the use of new, digital technologies. A 2019 review proposes a definition of digital transformation as "a process that aims to improve an entity by triggering significant changes to its properties through combinations of information, computing, communication, and connectivity technologies."
Digital transformation can be seen as a socio-technical programme.
Adopting digital technology can bring benefits to a business,
however, some company cultures can struggle with the changes required by digital transformation.
A 2015 report stated that maturing digital companies were using
cloud
In meteorology, a cloud is an aerosol consisting of a visible mass of miniature liquid droplets, frozen crystals, or other particles suspended in the atmosphere of a planetary body or similar space. Water or various other chemicals may ...
hosting, social media, mobile devices and data analytics, while other companies were using individual technologies for specific problems. By 2017, one study found that less than 40% of industries had become digitized (although usage was high in the media, retail and technology industries).
As of 2020, 37% of
European companies and 27% of American companies had not embraced digital technology.
Over the period of 2017-2020, 70% of European municipalities have increased their spending on digital technologies.
In a 2021 survey, 55% of European companies stated the
COVID-19 pandemic
The COVID-19 pandemic, also known as the coronavirus pandemic, is an ongoing global pandemic of coronavirus disease 2019 (COVID-19) caused by severe acute respiratory syndrome coronavirus 2 (SARS-CoV-2). The novel virus was first identi ...
has increased the demand for digitalization, and 46% of companies reported that they have grown more digital.
Half of these companies anticipate an increase in the usage of digital technologies in the future, with a greater proportion being companies that have previously used digital technology.
A lack of digital infrastructure was viewed as a key barrier to investment by 16% of EU businesses, compared to 5% in the US.
In a survey conducted in 2021, 89% of African banks polled claimed that the
COVID-19
Coronavirus disease 2019 (COVID-19) is a contagious disease caused by a virus, the severe acute respiratory syndrome coronavirus 2 (SARS-CoV-2). The first known case was identified in Wuhan, China, in December 2019. The disease quick ...
pandemic has hastened the digital transformation of their internal operations.
Digital transformation gives enterprises new vitality. Now, economic consequences are a major concern for digital transformation.
In 2022, 53% of businesses in EU reported taking action or making investments in becoming more digital.
71% of companies in the US reported using at least one advanced digital technology, similar to the average usage of 69% across EU organizations.
However, since there are no comprehensive data sets on the digital transformation at the macro level, the overall effect of digital transformation is still too early to comment.
See also
*
E-learning
*
Electronic medical record
An electronic health record (EHR) is the systematized collection of patient and population electronically stored health information in a digital format. These records can be shared across different health care settings. Records are shared thro ...
*
Government Digital Service
*
Online shopping
Online shopping is a form of electronic commerce which allows consumers to directly buy goods or services from a seller over the Internet using a web browser or a mobile app. Consumers find a product of interest by visiting the website of t ...
*
Supply chain
*
Real Estate
Real estate is property consisting of land and the buildings on it, along with its natural resources such as crops, minerals or water; immovable property of this nature; an interest vested in this (also) an item of real property, (more genera ...
References
{{Authority control
Business planning
Digital technology