Since I first wrote about digital transformation back at the end of 2012, the term has become wildly overhyped. Since CEOs are now at least asking about digital transformation, and every technology vendor now claims expertise in digital transformation, it’s time to burst a few of the myths surrounding digital transformation.
But first, let’s recap (feel free to skip ahead to the first myth):
Why Is Digital Transformation Different From What Came Before?The simple answer is that because of the changes outlined below, the business environment is much more volatile than before, resulting in the need for urgent change:
Technology is evolving new business capabilities.The confluence of rapidly evolving technologies (e.g., mobile internet, social, cloud, mobile, voice, IoT, AR, ML and AI — sometimes referred to as the digital age) creates opportunities for companies to radically change the way they help customers achieve outcomes they value through new technology capabilities.
Myth No. 1: Transformation Means Simply Updating The Website And Building A Mobile AppWhile adding new digital customer or employee experiences can drive significant business improvement, transformation must go deeper. Digital transformation requires new digital business capabilities to help the business deliver customer outcomes in entirely new ways.
In banking, adding mobile check deposit to a mobile banking app enhances the customer experience, but enabling person-to-person mobile payment using a phone number or email address requires a more fundamental shift in thinking. Adding digital wealth management capabilities to help customers automatically manage and optimize their money pushes capabilities even further.
Coming soon: “Myth No. 2: IT . . . ”
(This post originally appeared on the Forrester Research blog, which can be viewed here).