Digital Transformation

Digital transformation is the change associated with the application of digital technology in all aspects of human society . [1]

Digital transformation may be thought of as the third stage of embracing digital technologies:

Digital competence → digital usage → digital transformation

With use and transformative ability informing digital literacy . The transformation methods used in this method are inherently self-explanatory. [2] In a narrower sense, “digital transformation” may refer to the concept of “going paperless ” and affects Both individual businesses [3] and whole segments of the society, Such As government, [4] mass communications [5] Art, [6] medicine, [7] and science. [8]

Historic development


Main article: Binary number

In 1703 Gottfried Wilhelm von Leibniz explained and envisioned the concept that would be known as “digitalization” in his publication Explanation of the Binary Arithmetic . [9] INITIALLY Developed as a base-2 numerical system, Representing two values: Either a 1 or 0, the system Was further Top Developed and complemented by scholars Such As Boolean (1854), [10] Shannon (1938) [11] and George Stibitz during the 1940s. [12]

Early digital computers

Main article: Computer § Digital computers

Today, Stibitz is considered one of many pioneers of the digital computer, through the development of the first electromechanical computer from its discovery of the automatic computing relays. The first electronic computer was introduced by John Atanasoff in 1939. The process of digitalization thereafter accelerated, with the development of personal computers such as the Simon in 1950, Apple II in 1977 and IBM PC in 1981. [13]

Accelerated change

With the introduction of the World Wide Web , the scope, dimension, scale, speed as well as effects of digitalization fundamentally changed, resulting in the increased pressure on the societal transformation process. [14]

In 2000, digitalization began to be used more widely as a concept and argument for an overall governmental introduction of IT , increased use of internet and IT on all levels. A similar development in the general business climate in order to raise awareness regarding the issue and opportunity. In the EU for instance, an initiative called the Digital Single Market was developed, with recommendations for national digital agendas in the EU, which will gradually and positively contribute to the future societal transformation, with more Basis for e-governance and information society .


The development of a new business model for the development of business processes in the context of the development of business processes, On an internal and external efficiency of IT to name a few.


Digitization is a subprocess of a much greater technological progress (see below): digitization ( the conversion ), digitalization ( the process ) and the digital transformation ( the effect ) that are collectively accelerating the global and societal transformation process. [14]


Main article: Digitizing

In digital, business, trade, industry and media discourses, digitization is defined as “the conversion of analog information into digital form” (ie numeric, binary format). Digitizing is a technically explained as a representation of signals, images, sounds and objects by generating a series of numbers, expressed as a discrete value. [14] The majority of sectors and industries in media, banking and finance, telecoms, medtech and health care have been strongly affected by this conversion of information. [15]


Unlike digitization, digitalization is the actual ‘process’ of the technologically-induced change within these industries. [14] This process has enabled much of the phenomenon today, known as Internet of Things , Industrial Internet , Industry 4.0 , Big data , machine to machine communication , blockchain , cryptocurrencies etc.

The academic discussion surrounding digitalization has been described as a problematic definition of the phenomenon. [16] A common misconception is that digitalization essentially means the use of more IT, in order to enable and take advantage of digital technology and data. This early definition however, has broadly been replaced by the above definition, now linked to holistic views on business and social change, horizontal organizational and business development, as well as IT.

Digital transformation

Finally, digital transformation is described as “the total and overall societal effect of digitalization”. [14] Organizational patterns, cultural barriers, and so forth. [16] [17]

Digitization (the conversion), the digitalization (the process) and the digital transformation (the effect) therefore accelerate and illuminate the already existing and ongoing horizontal and global processes of change in society. [14] [15]

Opportunities and challenges

When planning for digital transformation, organizations must factor in the cultural changes they will face as workers and organizational leaders adjust to adopting and relying on unfamiliar technologies. [18] Digital transformation has created unique marketplace challenges and opportunities, as organizations must contend with nimble competitors who take advantage of the low barrier to entry that technology provides. [19] Additionally, due to the high importance given to technology and the widespread use of it, the implications of digitalization for income, profit and opportunities have a dramatic upside potential. [20]

Other studies

In November 2011, a three-year study conducted by the MIT Center for Digital Business and Capgemini Consulting concluded that only one-third of companies globally have an effective digital transformation program in place. [21]

The study defined an “effective digital transformation program” as one that addressed

  • “The What”: the intensity of digital initiatives within a corporation
  • “The How”: the ability of a company to master transformational change to deliver business results. [21]

A report published in 2013 by Booz & Company warns that the impact of digitization is not uniform. [22] This point out that some sectors and countries have taken to digitization more readily than others. It concludes that “policymakers need to develop digitization plans across sectors that take into consideration the varying impact by level of economic development and sector”.

In 2015, the World Economic Forum and Accenture launched the Digital Transformation Initiative (DTI) to study and research the impact of digitalization. The initiative offers unique insights into the impact of digital technologies on business and wider society over the next decade. DTI research supports collaborations between the public and the private sector. A 2017 interim report claims that digital transformation “could deliver $ 100 trillion in value to business and society over the next decade.” [23]

A-2015 report by MIT Center for Digital Business and Deloitte found that “maturing digital businesses are focused on integrating digital technologies, such as social, mobile, analytics and cloud, in the service of transforming their businesses. Focused on solving discrete business problems with individual digital technologies. ” [24]

In February 2017, a study by McKinsey & Company argued that “On average, industries are less than 40 percent digitized, despite the relatively deep penetration of these technologies in the media, retail, and high tech”. This study also points out the inequality in the penetration of digital change across industries, arguing that in some industries there were core changes due to digitization, in others the impact of this phenomenon was limited to minor or secondary changes. [25]

In July 2017, a survey of 1239 global IT and business professionals was released by the digital performance management company Dynatrace . In this study, the authors of the paper have shown that the majority of respondents in this study have a high degree of confidence in their ability to read and write. To resolve digital performance problems “. [26]

See also

  • Digital revolution
  • Information age
  • Information revolution
  • Information society


  1. Jump up^ Stolterman, Erik; Croon Fors, Anna (2004). “Information Technology and the Good Life”. Information systems research . p. 689. ISBN  1-4020-8094-8 .
  2. Jump up^ Lankshear, Colin; Knobel, Michele (2008). Digital literacies: concepts, policies and practices . p. 173. ISBN  978-1433101694 .
  3. Jump up^ Digital Transformation: The Essentials of e-business Leadership, by Keyur Patel, Mary Pat McCarthy, 2000,ISBN 0-07-136408-0
  4. Jump up^ E-government in Canada: transformation for the digital age By Jeffrey Roy, 2006,ISBN 0-7766-0617-4
  5. Jump up^ Mass Communication And Its Digital Transformation, by Ramanujam, 2009,ISBN 81-313-0039-0
  6. Jump up^ Art & Computers: an exploratory investigation on the digital transformation of art. PH.D. Thesis, published inCyber ​​Flux News, July 1997, and in theEncyclopedia of Postmodernism, Victor E. Taylor, Charles E. Winquist, London and New York, Routledge, 2001.
  7. Jump up^ Digital medicine: implications for healthcare leaders, by Jeff Charles Goldsmith, 2003,ISBN 1-56793-211-8
  8. Jump up^ Digital Transformation By Mark Baker, 2014,ISBN 978-1500448486
  9. Jump up^ von Leibniz, Gottfried (1703). Explanation of Binary Arithmetic, Die Sciences (Thesis). Royal Academy of Sciences.
  10. Jump up^ Boole, George (2009) [1854]. An Investigation of the Laws of Thought on Which are Founded in the Mathematical Theories of Logic and Probabilities . Reprinted with corrections [1958] ed.). New York: Cambridge University Press. Macmillan, Dover Publications. ISBN  978-1-108-00153-3 .
  11. Jump up^ Shannon, CE (1938). A Symbolic Analysis of Relay and Switching Circuits. Trans. IAEA 57 (12): 713-723. Cambridge: Massachusetts Institute of Technology
  12. Jump up^ Tropp, HS, (1993), “Stibitz, George Robert,” in Anthony Ralston and Edwin D. Reilly, eds., Encyclopedia of Computer Science, Third Edition, New York: van Nostrand Rheinhold, 1284-1286.
  13. Jump up^ Cite error: The named referenceVogelsangwas invoked but never defined (see thehelp page).
  14. ^ Jump up to:a b c d e f Khan, Shahyan (2017-06-02). Leadership in the Digital Age – a study on the effects of digitalization on top management leadership(PDF) (Thesis). Stockholm Business School.
  15. ^ Jump up to:a b Cite error: The named reference Collinwas invoked but never defined (see the help page ).
  16. ^ Jump up to:a b Chew, Eng (2015-07-01) [2013]. “Value Co-creation in the Organizations of the Future” (PDF) . IT Leadership in Transition-The Impact of Digitalization on Finish Organizations . ISBN  978-952-60-6243-3 . ISSN  1799-490X .
  17. Jump up^ “What Is Digital Transformation And Why Enterprises Must Embrace It Now?” . Impigertech . Retrieved 12 May 2017 .
  18. Jump up^ Jane McConnell. “The Company Cultures That Help (or Hinder) Digital Transformation” . . Retrieved 2017-01-12 .
  19. Jump up^ Rhys Grossman. “The Industries That Are Being Disrupted the Most by Digital” . . Retrieved 2017-01-12 .
  20. Jump up^ McKinsey, the case for digital reinvention (Feb. 2017). Accessed May13th, 2017.
  21. ^ Jump up to:A b Transformation: A Roadmap for Billion-Dollar Organization (PDF)(Report). Capgemini Consulting. 2011.
  22. Jump up^ “Digitization for economic growth and job creation: Regional and industry perspectives” .
  23. Jump up^ World Economic Forum Digital Transformation Initiative (DTI) website. Accessed May 13th, 2017.
  24. Jump up^ Kane, Gerald; Palmer, Doug; Nguyen Phillips, Anh; Kiron, David; Buckley, Natasha. “Strategy, not Technology, Drives Digital Transformation” . MIT Sloan Management Review . Retrieved 2016-01-18.
  25. Jump up^
  26. Jump up^

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