For much of my career, I have been brought in to solve critical problems. These have included leading responses to customer crises, solving business process issues, and turning around dysfunctional lines of business. My approach is simple: see the problem, assess the problem, fix the problem.
Many of these issues have involved business transformation. For the sake of discussion, I have viewed business transformation as rethinking business models, optimizing processes, and leveraging technology to enhance efficiency, competitiveness, and customer satisfaction.
Traditional Business Transformation
Conventional thinking behind business transformation frames it as a structured, defined process. It typically includes formal change management initiatives (if done correctly) and has a clear end. Internally, this might involve major initiatives like an IT upgrade or a new CRM system. On a broader scale, one might think of “whole business” transformation, such as IBM shifting from hardware to services or GE moving from selling aircraft engines to selling propulsion as a service.
The Role of Technology in Transformation
Over time, technology has increasingly played a key role in these transformations—often in an enabling capacity. So much so that I now cannot imagine a “business” transformation that is not also digital in nature.
Consider a medium-sized engineering business with a global reseller channel. Their entire sales system, both direct and indirect, was based on one Excel workbook with two supporting workbooks. There were no backups (though copies abounded). It worked, but it wasn’t scalable, nor could it answer key questions like: What are we selling? To whom? And for how much? To improve the system with scalability in mind, the implementation of a CRM with supporting processes was necessary.
The Shift to Digital Transformation
This brings us to digital transformation. I view digital transformation as the integration of digital technologies into every area of a business, fundamentally changing how it operates and delivers value to both customers and the business. Digital transformation involves leveraging data, automation, and innovative tech solutions to improve processes, enhance customer experiences, and drive new growth opportunities. Importantly, digital transformation is an ongoing, never-ending process. (Read more: The Power of Digital Transformation: Unlocking Business Growth and Efficiency)
The Merging of Business and Digital Transformation
Over time, the distinction between business transformation and digital transformation has blurred, to the point where they are now essentially two sides of the same coin. Historically, business transformation may have been seen as a strategic overhaul of models, processes, or structures—often driven by internal needs or market shifts. However, in today’s digital-first world, technology is no longer just a support or enabler; it’s the foundation of almost every transformation.
Looking Ahead: Integrated and Continuous Change
Integrated Change: Moving forward, every business transformation will inherently be digital. Businesses cannot separate operational improvements from the technologies that drive them. Whether it’s automating processes, analyzing data, or improving customer interaction, digital tools are integral.
Continuous Transformation: A critical shift in thinking is recognizing that transformation is no longer a project with a clear beginning and end. Digital transformation, and by extension business transformation, is an ongoing, iterative process. As new technologies emerge and customer expectations evolve, businesses must continuously adapt. This real-time adaptability is the new norm. (See: Has Business Transformation Become Obsolete?)
The Role of Data and Unified Strategy
Data-Driven Decisions: With the rise of big data, AI, and machine learning, businesses now make decisions based on real-time data insights. The constant flow of information allows companies to tweak, optimize, and reimagine their processes and strategies in ways that were never possible with traditional business transformation.. (Big topic, read CIO’s 3 things to get right with data management for gen AI projects)
Unified Strategy: Future business transformations will revolve around digital strategies. Rather than viewing technology as a tool or enabler, organizations will build their entire transformation roadmaps around digital ecosystems. This convergence requires leadership to develop strategies that integrate both business goals and digital innovation from the outset.
Wrapping This Up
The merging of business transformation with digital transformation signals that we are only at the beginning of a continuously evolving journey. The digital-first approach has become the backbone of every major business shift, with technology no longer playing just an enabling role but serving as the foundation for innovation.
As businesses move forward, the boundaries between operational improvements and digital strategy will continue to blur, requiring a mindset of ongoing adaptability. Leaders will need to adopt an integrated strategy where business goals and digital ecosystems are intertwined from the outset to stay competitive in this fast-paced environment.
Looking ahead, the rapid evolution of emerging technologies like AI, big data, and automation will make the future of business transformation even more exciting. These advancements are opening doors to unprecedented possibilities, providing businesses with new ways to optimize processes, deliver value, and drive growth. As these technologies continue to mature, businesses will need to stay agile, embracing continuous transformation as the new norm. We are standing on the edge of an era filled with opportunity, and those ready to harness the power of these innovations will shape the future of business.