What is Digital Transformation?

Digital transformation is the fundamental rethinking of how an organization uses technology, people, and processes to radically change business performance. It goes beyond digitization (converting analog to digital) and digitalization (using digital tools to improve existing processes) to encompass strategic, organizational, and cultural change. Successful digital transformation requires executive sponsorship, a clear strategy, maturity assessment to understand the starting point, prioritized initiatives, change management, and continuous measurement. It is not a one-time project but an ongoing organizational capability. Common failure modes include technology-first approaches (buying tools without strategy), lack of change management, unrealistic timelines, and prioritizing flashy innovations over foundational capabilities.