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Digital transformation is the profound transformation of business and organizational activities, processes, competencies and models to fully leverage the changes and opportunities of a mix of digital technologies and their accelerating impact across society in a strategic and prioritized way, with present and future shifts in mind. While digital transformation is predominantly used in a business context, it also impacts other organizations such as governments, public sector agencies and organizations which are involved in tackling societal challenges such as pollution and aging populations by leveraging one or more of these existing and emerging technologies. In some countries, such as Japan, digital transformation even aims to impact all aspects of life with the countrys Society 5. Industry 4. 0 vision in other countries. In the scope of this digital transformation overview, we mainly look at the business dimension. The mentioned development of new competencies revolves around the capacities to be more agile, people oriented, innovative, customer centric, streamlined, efficient and able to induceleverage opportunities to change the status quo and tap into new information and service driven revenues. Digital transformation efforts and strategies are often more urgent and present in markets with a high degree of commoditization. Present and future shifts and changes, leading to the necessity of a faster deployment of a digital transformation strategy, can be induced by several causes, often at the same time, on the levels of customer behavior and expectations, new economic realities, societal shifts e. In practice, end to end customer experience optimization, operational flexibility and innovation, are key drivers of digital transformation, along with the development of new revenue sources and information powered ecosystems of value, leading to business model transformations. Digital transformation is a journey with multiple connected intermediary goals, in the end striving towards continuous optimization across processes, divisions and the business ecosystem of a hyper connected age where building the right bridges in function of that journey is key to succeed. A digital transformation strategy aims to create the capabilities of fully leveraging the possibilities and opportunities of new technologies and their impact faster, better and in more innovative way in the future. A digital transformation journey needs a staged approach with a clear roadmap, involving a variety of stakeholders, beyond silos and internalexternal limitations. This roadmap takes into account that end goals will continue to move as digital transformation de facto is an ongoing journey, as is change and digital innovation. In this online guide we explore the essence of digital transformation as a vision to take this journey, its evolutions and how it is present across various business processes and industries. Digital business transformation a holistic approach. Digital technologies and the ways we use them in our personal lives, work and society have changed the face of business and will continue to do so. This has always been so but the pace at which it is happening is accelerating and faster than the pace of transformation in organizations. Digital transformation is not just about disruption or technology. Digital transformation is probably not the best term to describe the realities it covers. Some prefer to use the term digital business transformation, which is more in line with the business aspect. However, as an umbrella term, digital transformation is also used for changes in meanings that are not about business in the strict sense but about evolutions and changes in, for instance, government and society. Computer Hardware Software And Peopleware Of Computer there. This guide is about mainly about digital business transformation. In other words about transformation in a context of digital business where there is a decentralizing shift of focus towards the edges of the enterprise ecosystem. The customer in the broadest sense external and internal is a leading dimension in this equation with customer experience, worker satisfaction, stakeholder valueoutcomes, partnerships and a clear customer centric approach as components. Technological evolutions and technologies, ranging from the cloud, Big Data, analytics, artificial intelligence and mobilemobility a key game changer to the Io. T and more recent emerging technological realities are 1 enablers of digital transformation andor, 2 causes of digital transformation needs among others as they impact behavior of consumers or reshape entire industries such as manufacturing, andor 3 accelerators of innovation and transformation. Yet, technology is only part of the equation as digital transformation is by definition holistic. Digital transformation and hyper connectedness focus on the edges. Customer and customer experience, purpose and end goals, partners, stakeholders, the last mile of processes and disruption often sit and occur at these edges and are key for digital transformation. Sometimes digital transformation is even narrowed down to customer experience alone but, strictly speaking, this a mistake, leaving out several other aspects. The end goals of the business, customers and stakeholders, however, do drive the agenda. The central role of the organization is to connect the dots and overcome internal silos in all areas in order to reach these different goals as interconnectedness is the norm. In other words although the focus shift towards the edges, the central capabilities are realized in order to work faster and better for and at the edges. This happens for instance at organizational integrated, ecosystems, technological an as a service approach, cloud and agility enablers and at a a cultural level. The movement towards the edges also reflects in technologies and the decentralization of work and business models. From a technology perspective think about how data analysis is moving to the edge, the decentralization of information management, the shifts in security towards the endpoints, the impact of the Internet of Things and much more. Still, it does not mean that strategic decisions move to the edges or that digital transformation is only possibly in organizations with new organizational models. Enterprise wide digital transformation requires leadership, regardless of how it is organized and as long as the holistic approach towards the goals with the edges in mind prevails over internal silos and de facto gaps between reality and perception. In practice we see that pilot projects on the way to a more holistic and enterprise wide approach often happen bottom up, ad hoc or in specific departments. This is normal, typical in early stages but, if not followed through on a broader level, a potential risk for long term success. Atlas Copco Elektronikon Graphic Manual on this page. Digital transformation developing core capabilities across various business areas. Digital business transformation areas. Digital transformation in the integrated and connected sense which it requires can, among, others, touch upon the transformation of Business activitiesfunctions marketing, operations, human resources, administration, customer service, etc. Business processes one or more connected operations, activities and sets to achieve a specific business goal, whereby business process management, business process optimization and business process automation come into the picture.