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Digital transformation defined

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What is digital transformation?

Digital transformation refers to infusing technology into all areas of a business – including business processes, customer service and delivery – resulting in fundamental changes to how the business operates and delivers value to customers.

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Implementing digital transformation requires a culture shift, where technology isn't simply seen as a tool but as a mindset and way of doing business – and that's because it's not a one-and-done event but an ongoing effort that adapts and evolves with technology advancements, market changes, and macro-economic shifts to continue to create new value for customers.

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The digital transformation process

Aligning teams and processes

Regardless of exact roles, every product team member has to play a part in ensuring alignment on three things: customer needs, product KPIs and organizational goals.

Digital transformation process graphic outlining customer needs, product KPIs and organizational goals.
To learn more about how to build successful product teams, check out Nerdery’s Digital Product Owner's Handbook.

Research and strategy development

This is one of the most overlooked steps of digital transformation. Sometimes it's because research and strategy resources aren't available or because business owners feel they know their business and customers and no additional insight work is required. But by investing in the upfront strategy work, we are able to eliminate most of the guesswork and increase the time to value.

Effective use of data

Data can be the biggest indicator of measuring success. But it also can provide foresight into your digital transformation journey when used as a strategic tool. To ensure success in this area, start with auditing your internal data ecosystem to ensure your information is accurate and maximally utilized.

Customer experience

Digital transformation is all about improving the customer experience. Part of this is the initial strategy and research work mentioned above, but throughout development (and ongoing maintenance), following UX and CX best practices consistently ensures your products remain relevant over time.

Learn how prioritizing UX helped a global life sciences company triple their e-commerce revenue. 

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Integrating new technologies with existing infrastructures

This means having the right technology to support your product goals and customer needs. Sometimes, yes, that means investing in brand-new customer software, but often it's evaluating and updating your existing systems to ensure they are up to the task of supporting your digital transformation.

Innovating to deliver ongoing value to customers

Digital transformation enables companies to increase productivity, streamline processes, and improve customer experiences. It also allows businesses to reach new markets, reduce costs, and enhance innovation. For example, new technologies such as AI and IoT can enable better decision-making and automating processes to accelerate digital transformation.

Digital transformation is an ongoing process that will require constant adaptation and evolution. Through the right digital technologies and tools, focusing on the customer experience, building cross-functional product teams, continuously evaluating and adjusting, and investing in innovation, companies can successfully implement digital transformation and use it as a growth driver.

Learn more about Nerdery's data + AI services and find out how you can get started.

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Today, digital transformation is not optional; it’s a necessity.

The rapid pace of technological change means that companies that don’t embrace digital will find themselves left behind.

To get the full scope, download Nerdery’s free guide, Dissecting Digital Transformation, and start laying the groundwork for effective digital transformation.

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