Digital transformation is the adoption of

digital technology Digital technology may refer to: * Application of digital electronics * Any significant piece of knowledge from information technology Information technology (IT) is the use of computers to create, process, store, retrieve, and exchange a ...

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 entit ...

, invention, customer experience or efficiency.

History

Digitization is the process of converting

analog Analog or analogue may refer to: Computing and electronics * Analog signal, in which information is encoded in a continuous variable ** Analog device, an apparatus that operates on analog signals *** Analog electronics, circuits which use analog ...

information into digital form using an

analog-to-digital converter In electronics, an analog-to-digital converter (ADC, A/D, or A-to-D) is a system that converts an analog signal, such as a sound picked up by a microphone or light entering a digital camera, into a digital signal. An ADC may also provide ...

, 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, pub ...

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 European, or Europeans, or Europeneans, may refer to: In general * ''European'', an adjective referring to something of, from, or related to Europe ** Ethnic groups in Europe ** Demographics of Europe ** European cuisine, the cuisines of Europe ...

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 identif ...

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 COVID-19 pandemic in Hubei, identified in Wuhan, China, in December ...

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.

References

{{Authority control Business planning Digital technology

History

See also

References