Generally Nodes has been met by an overriding excitement about digital from enterprises throughout the last couples of years. We believe this is a great indication of the mindset when it comes to the imminent digital change – people know why it is important and seem ready to embrace the change.
It is worth noting however that we have found a lack of clarity about what digital actually means. Some view it as the upgraded term for what their IT function does. Others focus on digital marketing and sales. While this is a very common challenge in companies these days, companies will have to create a clear and shared understanding to ensure an efficient response to the digital transformation taking place in society.
Digitalisation has never been about updating a company’s website or launching a new mobile app. Digitalisation basically involves an overhaul of your entire business – it requires a cultural change, new skills, investments and the courage to step outside the box of a company’s past history. Digitalisation involves how a company interacts with its customers, how it maintains its quest for excellence, and how it approaches innovation.
Here is how we define digitisation, digitalisation and digital transformation:
Digitisation:
The actual conversion of analog information into digital form.
Digitalisation:
The actual process undertaken to convert analog information into digital form.
Digital transformation:
The actual effect caused by digitalisation, e.g. financial, strategic, organisational, cultural, etc.
Overall
As digital – digitization (the conversion), digitalization (the process) and the digital transformation (the effect) – takes place globally, to benefit most businesses are encouraged to take notice of how digital affects their strengths and weaknesses, as well as their opportunities and threats, and develop a solid strategy in response.
To succeed, businesses must embrace digital in a holistic sense and accept that digital will permeate, like traditional economics, all functions in their organisation.
When seen in a holistic view it becomes very clear that people are at the center of digital transformation, not technology per se. This is of paramount importance to recognize when creating digital strategy.
Indlægget Digital Explained blev først udgivet på Nodes UK.
