One issue perhaps many of us have is the fuzziness of the term “digital transformation.” It is never clear what precisely that means. One definition used by the Economist Intelligence Unit is that DX “is the process of using digital technologies to support capabilities to create new business models.”
Some might note that this still is rather vague, as a “business model” includes everything required to “make a profit.” That includes the value proposition, products, infrastructure, customers, competitors, marketing and distribution. In other words, the business model is more than the revenue model. The business model includes all the other elements and decisions required to identify a customer need and fill it.
source: Harvard Business Review
Unfortunately, DX therefore includes all applications of technology to any part of the business model, which might be useful in some ways, but frustratingly imprecise in other ways. And emphasis can shift very quickly, that being the case.
According to the EIU, prior to the Covid pandemic, enterprise priorities focused on applied technology to improve efficiency, among other objectives. During the pandemic, emphasis shifted to supporting remote work. Post pandemic, cloud computing is seen as the top priority, among others.
source: Economist Information Unit
Digital transformation is the stated rationale for almost any applied technology these days. It helps modestly to refine the definition to emphasize “new business models.” We might operationalize that further by arguing DX is about “new revenue models.”
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