Is “digital transformation” a redundant concept?
In recent years, the term “digital transformation” has become ubiquitous with organisations of all sizes across all segments, each striving to embrace technology to stay competitive.
Perhaps it’s time to welcome the new era of “organisational evolution”
However, I feel it’s worth exploring whether the concept of digital transformation is redundant in the fast-paced and ever-evolving landscapes that we currently operate in.
Below are some of the reasons why some could argue that digital transformation is an overused and perhaps even unnecessary term.
The constant evolution of technology
One of the primary arguments against the relevance of digital transformation lies in the relentless pace and evolution of technology. What we consider cutting-edge today may become outdated in a matter of months. This continuous cycle of innovation makes the idea of a one-time (and long lifecycle) transformation obsolete. Instead, businesses should be focussed on continuously adapting to new and emerging technologies.
Integration as the norm
The initial emphasis on digital transformation stemmed from the need to move from traditional to digital processes. However, as digitalisation has become the norm, the concept of transformation loses its distinctive edge. In today’s environment, organisations are expected to seamlessly integrate digital technologies into their operations as a standard practice rather than undergoing a distinct transformation.
Holistic business transformation
I have argued in previous articles and posts that focusing solely on “digital” transformation hugely oversimplifies the complex changes businesses are required to make. True transformation involves a holistic approach, encompassing some critical elements such as cultural shifts and organisational restructuring. People (employees and customers) and shareholder value need to be at the heart of true transformation. Labelling it as digital transformation often limits the scope of necessary changes, undermining the broader aspects of an organisational evolution.
Digital as a business enabler, not a goal
The fixation on digital transformation often places the emphasis on technology itself rather than its purpose. The goal of any business is not merely to become digital but to leverage digital tools to enhance efficiency, improve customer experiences and drive innovation. Overemphasising the digital aspect may distract from the strategic goals that technology should enable.
Inherent risks and challenges
Embarking on a digital transformation journey is not without its challenges. Many organisations face difficulties in overcoming legacy systems, resistance to change and areas like cybersecurity and data concerns. The term “digital transformation” might carry a negative connotation for those who have experienced failed or stalled initiatives, contributing to the perception that it is a redundant concept.
In summary
While the term “digital transformation” has played a crucial role in highlighting the importance of embracing technology in business, it may be time to reconsider its usage.
The dynamism of the digital landscape, the integration of technology as a standard practice and the need for a more comprehensive approach to business evolution all contribute to the argument that the concept of digital transformation is becoming redundant.
Instead, organisations should focus on continuous adaptation, putting people at their core and embracing technological advancements as a part of their ongoing journey towards innovation and excellence.
Perhaps it is time to move on from “digital transformation” and welcome the new era of “organisational evolution”.
About the author
Richard Jeffreys is the founder of CX ALL, a customer experience advisory company.
Richard has over 35 years of global leadership experience in banking and fintech, living and working in the US, Europe and Asia. He is passionate about customer and employee satisfaction and their correlation to sustainable commercial value.
Follow Richard on LinkedIn.
It probably is because large banks are still so far behind that it isn’t worth tracking. Here’s an example:
Customer uses a bank app that contains name, address, bank details, email address.
Customer needs to dispute a transaction on account. Are the app details above used to populate the dispute? No, customer has to fill them all out again in an app form. Is this form used to dispute the transaction? No, customer is emailed another pdf form. Is the information above used to populate the pdf form? No, customer has to fill them all out again.
It’s the current day equivalent of setting up a webpage with a company name and phone number then expecting the work to just roll in.