What is digital transformation? | IBM

Digital transformation takes a customer-driven, digital-first approach to all aspects of a business, from its business models to customer experiences to processes and operations. It uses AI, automation, hybrid cloud and other digital technologies to leverage data and drive intelligent workflows, faster and smarter decision-making, and real-time response to market disruptions. And ultimately, it changes customer expectations and creates new business opportunities.

While many organizations have undertaken a digital transformation in response to a single competitive threat or market shift, it has never been about making a one-time fix. According to MIT Sloan Management Review (link resides outside of ibm.com), “Digital Transformation is better thought of as continual adaptation to a constantly changing environment.” Its goal is to build a technical and operational foundation, to evolve and respond in the best possible way to unpredictable and ever-changing customer expectations, market conditions and local or global events.

It’s also worth noting that while digital transformation is something that businesses undertake, the effect goes well beyond business. As one expert at Red Hat® puts it, “Better living through software—that’s what digital transformation is (link resides outside of ibm.com). How’s that for a definition?” It’s a solid definition, particularly if you think that ‘better living’ includes working and playing in a world that promises new opportunities, more convenience and greater resilience to change.

Digital transformation is why so many areas of business and life are fundamentally different from those of 20 years ago. It’s also why we are now living in the digital age to one degree or another.