What Does Digital Transformation Mean?
Digital transformation (DX) is the use of digital technology and data analytics to make data-driven decisions, improve operational efficiency, streamline work and gain (or retain) a competitive edge in business.
Digital transformation projects explore ways that technology can be used to streamline workflows and make business processes more agile. The most successful DX initiatives are able to effectively use structured, semi-structured and unstructured data to improve internal operations and customer experience (CXM).
Technologies associated with digital transformation include cloud computing, big data analytics, artificial intelligence (AI), blockchain, machine learning (ML), the Internet of Things (IoT) and 5G.
Techopedia Explains Digital Transformation
Digital transformation is a term most often associated in the business world where companies are striving to keep up with changing business environments brought about by customer demand and technology.
Digital tools and technology are changing how people interact, and in turn this changes how people do business.
For example, you cannot sell a car or a house over the phone; there are simply too many factors to consider that require visual evidence. But this type of transaction can be done in a digital manner through online interaction or online merchant tools.
The seller can post pictures for every aspect of the item on a website or even have a real-time video conference with the buyer in which the buyer is given a visual tour of the item.
In a more business-related aspect, digital transformation refers to how a company has or is transforming its core business processes using digital technology in order to gain competitive advantage and gain differentiation in its market segment.
It refers to the streamlining of business process through digital computer applications and hardware to achieve collaboration and interaction between its partners as well as provide greater customer value.