Digital Transformation vs Business Transformation: The Only Guide you will Ever Need!

Category : Digital Transformation

Blog posted by : Admin / 18 May, 2022

 

Digital Transformation is often talked about as a way for businesses to stay relevant. Stagnation is the worst fear for every organization. With industries evolving every day, businesses too need to transform so they can continue fulfilling their customers’ demands. 

 

Organizations that are averse to adapting to the latest market trends risk being run into oblivion. 

 

Continue reading if you want to know:

1. How to avoid business stagnation?
2. What is digital transformation (with examples)? 
3. What is business transformation (with examples)?
4. Digital Transformation vs Business Transformation: The Differences
5. DT vs. BT Quiz: Take this quiz to find out what your company needs?

 

 

Avoid the Omnipresent Threat of Business Stagnation

 

There are different kinds of transformations business owners could invest in but the two most commonly used terms are digital transformation (DT) and business transformation (BT). Though they have been used interchangeably, they differ from each other.

 

Business transformation manages change on a broader scale in order to bring about a large-scale shift in its people, process and technology. The vision is to shake up the organization so every unit works towards the future vision of the company. 

 

Digital transformation brings about technological change by digitizing organizational processes to streamline workflows, usually by implementing a software solution. 

 

DT often forms a part of a larger business transformation but is also implemented as a standalone strategy, most commonly to transform legacy systems.

 

Digital Transformation vs Business Transformation: Examples

Digital Transformation Examples	Business Transformation Examples
Automating all or some processes Integration of apps, devices and assets   Creating an AI integrated business	Creating a global presence Becoming a tech-savvy company Merging with or acquiring another company

 

BT is more focused on bringing change across the organization while a digital transformation strategy focuses on modernizing processes through digital technology. Both can occur independently of each other but for the most profitable impact, it is advisable to fulfill all your needs for BT as well as DT. 

 

Digital Transformation vs Business Transformation: Differences

	Digital Transformation (DT)	Business Transformation (BT)
1.	Implementation of digital tools	Accomplishes large-scale company goals
But DT can function as a standalone strategy
2.	Change in company processes	Change in people, process, technology
DT strategy should align with company goals
3.	Technological change	Cultural change
DT includes implementation of an automation system
4.	Improved service and productivity	Creating new products and services
DT enhances process workflows
5.	DT includes elements of BT	BT may not include digitization
DT and BT, both may or may not integrate technologies
6.	Provides technology to change processes	Change is brought due to market demands

 

 

Both, BT and DT are critical for the success of a company as they help them adapt with changing demands and lend a competitive edge to create a future-ready business. 

 

 

Disrupt or Be Disrupted!

 

Dynamic customer needs are driving more and more organizations to embrace change and create new value chains. Every unit of an organization needs to be agile to scale with change and remain robust in times of disruptiveness. Before implementing a business or digital transformation strategy, you need to do the following:

1. Assess your current business model, processes and company objectives
2. Analyze your competitors 
3. Study the market and your customers 
4. Create strategies that align with company objectives 
5. Identify what resources, processes and technologies need to be changed 

 

Bring about a change in the traditional company methods either by DT or BT. Consider the example of inventory management. 

 

For a simple digitization process, all documents such as purchase orders, goods received notes and reports can be scanned and uploaded. It allows the user to store, retrieve, track and version control the documents. You would use the digital documents in the same way you would the physical documents. 

 

 

Process Innovation with Artificial Intelligence

 

An AI-integrated digital transformation strategy for inventory management includes elements of BT as well. Instead of creating digitized copies of documents, an ERP software can be implemented to create workflows. Users only need to enter a particular kind of data once in the system. The ERP modules can pull the required data to process it even further. Integration of devices and assets with the ERP system forms a part of BT. 

 

For instance, at the time of delivery of raw materials, instead of entering data into the system, the user can scan the document with an OCR machine and the delivery data will automatically be entered onto the OCR in ERP system. Similar is the process with the integration of a weighbridge machine, wherein data is entered without making any manual entries. 

 

Another aspect of business transformation is the use of artificial intelligence to generate data insights and forecasts for the organization. Advanced features such as predictive analytics and intuitive scheduling enables businesses to make informed and calculated decisions. The forecast reports help an organization develop marketing and sales strategies in line with current market demands. 

 

 

DT vs. BT: What Does Your Organization Need?

 

Remember BT is about changing the way an organization operates and DT is about supplying the technology to facilitate the transformative change. In the end, it is about leveraging technology to gain maximum benefit.

 

To find out whether your business needs a DT or BT, answer the following questions with a simple Yes or No.

 

Digital Transformation vs Business Transformation: Quiz Would you describe your transformation goal as large scale? Would you need to manage change across most departments and/ or offices? Does the transformation require a shift in the cultural perspective? Does the change go beyond the implementation of a digital platform? Does it change the way business is conducted due to evolving market demands?

If you answered Yes to most questions, then the kind of change you are looking for is a business transformation which may or may not include DT, depending on your needs.

 

Stay Ahead of the Curve

It is crucial to figure out the kind of change you need in order to plan for the resources and time required. The change management and implementation plans vary greatly with both kinds of transformations.

Whether you are creating a business or digital transformation strategy, it is a journey that cannot be completed alone. To adopt any change successfully, it is important to create the right mindset first. 

 

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