Without a workable definition, it will be hard for any telcos or enterprises to figure out whether their “digital transformation” efforts and spending have had any positive effect.
“Digital transformation” frequently is assumed to be an enterprise or telco objective, without specifying what that means. Colloquially, many assume it simply means converting manual processes to automated processes, or substituting digital technology for existing processes. Quite often, that is a meaningful practical definition.
In other cases digital transformation applies mostly to the customer-facing operations (sales, activation, support, fulfillment). Others emphasize the creation of new services and revenues beyond data transport. In that sense, it is a euphemism for “moving up the stack” or “taking on new roles within the value chain.”
The point is that DX is such a broad term as to be almost devoid of meaning, unless we speak concretely about the particular process, function or outcome we are trying to change.
With the caveat that a business model embraces all operations that any enterprise or organization must support to make money, digital transformation in its widest sense means new revenue models. In itself, that is about as broad a concept as that of the “business model,” which is all the processes any entity has to undertake to identify a customer problem, create its solution, deliver the solution and create a sustainable revenue model.
“Digital transformation is the process of using digital technologies to create new--or modify existing--business processes, culture, and customer experiences to meet changing business and market requirements, says Salesforce. As you would expect, Salesforce focuses on all customer operations.
Clothes also tend to put the focus on customer-facing operations. “the realignment of, or new investment in, technology and business models to more effectively engage digital customers at every touchpoint in the customer experience lifecycle,” says Altimeter Group.
In principle, according to the TMForum, DX can apply to almost any process conducted by an organization. So it might be best to envision digital transformation as a layer cake or continuum, where processes are changed little by little, starting with customer-facing operations in many cases, but ending up with creation of wholly-new or different products and revenue streams.
That means DX will happen in stages, over time, from easiest to hardest processes, as would be the case for most information technology projects, changing operational processes one at a time.
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