week 5 - digital transformation Flashcards
what is digital transformation?
process of integrating digital technology into all aspects of a business, changing how it operates + delivers value to customers.
requires orgs to challenge their existing states + experiment.
what are the benefits of digital transformation?
- improved efficiency + productivity
- improved new products + services
- enhanced customer experience
- cost saving + revenue growth
- competitive advantage
what are the differences between digital innovation + transformation?
digital transformation: broad, uses existing tech, affects entire org, long term, involves people.
digital innovation: focused on specifics, focuses on disruptive tech to introduce something new, affects specific areas, short term, creative + new ideas.
why do we do digital transformation (key drivers)
- the lack of face to face interaction, leading to the need for virtual interaction + engagement
- pre-covid tech does not cover this gap
- supply chain transformation
- the need for business sustainability.
what is strategic digital transformation?
long term approach to integrating digital tech’s into a business to achieve specific strategic goals.
what may strategic digital transformation do?
- high-level digital transformation direction.
- may result in process transformation of business activities.
- may require change in business model + value proposition.
- may result in change in organisational structure + culture.
- orgs may diversify into new markets and add new businesses to their products.
what are some examples of strategic digital transformation?
- amazon diversifying from retail to it by offering cloud services
- home depot enhancing online shop experience, providing quality products + resources through a seamless process.
what are the different types of digital transformation?
- business process
- business model
- business domain
- cultural/organisational
what is a business process digital transformation?
the process of changing how a company operates by integrating digital tech’s into existing workflows + systems, aiming to improve efficiency, productivity through data analysis and new digital tools.
what is business model digital transformation?
change in how companies operate + deliver value to customers by rethinking the core structure of the business to adapt to the digital landscape.
what is business domain digital transformation?
a company leveraging digi tech’s to expand into a new market or industry sector.
what is cultural digital transformation?
shift within an org where the company culture embraces + integrates digital technologies.
what are the challenges of digital transformation?
- resistance from customers (b2c)
- it business alignment = leadership becomes more involved in it
- long term change in mind
how does transformation happen?
- planned (deliberate, regulatory change, new policy)
- technological disruption (tech as a driver of change)
- emergent (change as a crisis response).
what are the stages of the strategic alignment model?
internal: organisation infrastructure + processes, IS infrastructure + processes
external: business strategy (scope, competence, governance), IT strategy.
what is meant by disruption?
a process where a smaller company with fewer resources is able to successfully challenge established incumbent businesses. An innovation that disrupts current practices, care processes, business models + organisational structures.
what are the 3 enables of disruption?
- simplifying tech
- business model innovation
- disruptive value network
what is meant by change?
ongoing improvisations in day to day practices by situated actors.
what is meant by emergent change?
IS is only partly planned, incremental/continuous management, focus on facilitating vs designing for org change, from design-implement-use to in-use design, interesting side effects.
what is the process of generic digital technology?
not a fixed destination with a static state, no single path as strategy, methods + tech deployed must be tailored to the unique vision and values of each org.
Digitise information- digitisation
Organise information - digitisation
Automate processes - digitalisation
Streamline processes - digitalisation
Transform the institution - digital transformation
what are the objectives of digital transformation?
to help create a highly dynamic organisation with institutional capacity for agility, resilience, rapid innovation + growth.
what is digitisation?
changing from physical form to digital form.
what is digitalisation?
using digital technologies + info to transform individual institutional operations.
what are the building blocks to the digital transformation process?
- they play a role in the creation + reinforcement of disruptions in society.
- these trigger strategic responses from parts of orgs that use digi techs.
- they use digi techs to alter the value creation paths once relied on to remain competitive.
- now they must implement structural changes + overcome barriers hindering transformation.
- these changes have positive images for orgs, individuals + society.
