It seems everyone is talking about digital transformation. But what it is?

Long Definition: Digital transformation is the shift from a legacy approach to encouraging new ways of working and thinking using digital, social and mobile technologies to improve the experience of your employees, customers, suppliers, partners and stakeholders.

In plain English: Digital transformation is the innovative use of technology to improve a business. This includes leveraging software to streamline processes, increase productivity and enhance every relationship within your business—customers, employees, vendors, partners. That's it!

All of us have experienced legacy, rigid and structured technology based business systems, mostly built around repeatable steps—like a produt line view of business. Core processes, like receiving invoices, paying vendors or concerns over inventory have to be done, but technology has exploded over the last few years and has changed how we work.

We now live in a world of instant communication and feedback. The supply chain has changed forever and those that do not innovate, evolve and literally "transform" eventually become extinct. Stark examples of companies that were disrupted and did not evolve include Kodak, Blockbuster and Blackberry. And this list will grow longer unfortunately.

Opportunities & Challenges

Digital transformation can extend the reach of your company, improve decision-making processes and accelerate development of new products and services. However, the rapid adoption of technology can disrupt traditional business models and wreak havoc.

Digital transformation can be the most daunting challenge in change management, impacting all levels of an organization. Leaders must ensure that technology-enabled change ignites productivity  and releases significant competitive advantages. Leaders need to understand where and how the fundamentals of their current operations can be affected by agile new technology or unproven business models.