What is digital transformation?

A digital transformation is any strategic initiative that applies data science and marketing technology to solve fundamental problems. The goal is to reinvent the business in ways that put customers first, taking advantage of the power of digital technology to create seamless interactions with them. By their very definition, businesses' digital transformations are far-reaching efforts that will change how you think about people, processes, and even company culture.

Why digital transformation is the new business imperative

Digital transformation initiatives apply the power of data science and marketing technology to shape your business around new possibilities. Strategic by design, these projects touch all aspects of the organization, from the C-Suite to content authors and customer service teams. They are experimental and iterative, revealing insights that lead to better decisions every step of the way. Whether you embark on a digital transformation to survive industry disruption, build a more engaged community, or drive online sales, a thoughtful and informed approach will yield the best long-term results.

Digital transformation vs Business transformation

Any type of transformation involves foundational change for the organization. However, when companies undertake a business transformation initiative, the scope may be much broader, involving finance, culture, core values, and underlying processes. By comparison, digital transformations focus specifically on using new technology to make the business digital-first, so it can better compete in the marketplace. Digital transformations typically are led by the CMO, in partnership with the executive team. In fact, 40% of CMOs are primarily responsible for creating the business case for customer experience investments, according to “The Business Case for Digital Investment,” an Econsultancy report for Sitecore. Business transformations, on the other hand, may be led by various other leaders in the organization.