Digital Transformation: What it is, Main Causes and Impacts

Digital transformation is a change of mindset that companies undergo with the objective of becoming more modern and keeping up with the technological advances that are constantly emerging.

There is no person in the world who has not been impacted by this process. With companies, it’s the same thing.

From the discovery of the wheel, through the Industrial Revolution and arriving in artificial intelligence and the Internet of Things , the truth is that the human species, since its creation, has always promoted very impressive technological advances .

But digital transformation is not just about creating new tools, mechanisms, devices and services that make our lives easier in some way.

The term is widely used in the corporate world when it comes to the demands of a new reality , in which technology advances faster than ever.

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In other words, it is more about the context that surrounds the new modernities than about the technologies themselves.

That’s why implementing digital transformation in a company is not as simple as using new functionality.

Because technological products and services come with a manual and follow a subjective logic.

What we are talking about here is a cultural change , which is a bigger challenge, because it involves the human side as well and has a large number of variables.

To advance knowledge about the challenges of digital transformation in companies and their solutions, check out the topics we have prepared in this article:

  • What is digital transformation?
  • What caused the digital transformation?
  • What is the purpose of digital transformation?
  • How does digital transformation work?
  • The pillars of digital transformation
  • How important is digital transformation?
  • What are the impacts of digital transformation for society?
  • Benefits of Digital Transformation
  • Which generations has the digital transformation most impacted?
  • How to keep up with changes?
  • Main technologies
  • What are the challenges of digital transformation?
  • Applied example of digital transformation.
  • How to apply digital transformation in companies?
  • What are the next digital transformation trends?

Good reading!

What is Digital Transformation?

Digital Transformation: What it is, Main Causes and Impacts
What is Digital Transformation?

It doesn’t matter what product or service you offer – it can be as analog as possible.

What matters is that the processes used in its production and commercialization obey the logic of the digital world .

And what is this logic? Fast changes, instant responses, flexibility and agility.

For you to understand better, we explain below some aspects that we can consider as pillars of the digital transformation :

  • Consumer focus : It has never been easier to understand consumers’ desires and preferences . So, it is essential that this information guide all the company’s work
  • Constant feedback : All companies have made, committed and will make mistakes. As there are now more and better possibilities to get feedback , it is necessary to take advantage of the flaws to qualify the product
  • Faster delivery : All of these processes – from producing, launching the product, getting feedback and correcting directions when necessary – must happen with maximum efficiency
  • Adapting to Change : Deliveries need to be agile because contexts change all the time. Therefore, the company needs to have resilience and, at the same time, the ability to make its processes more flexible.

Did you notice that in none of the aspects we just explained we mention technology?

That’s not to say she shouldn’t be there. On the contrary, it’s the new technologies that make it all so much easier.

That’s why we emphasize, in the opening of the text, that the digital transformation goes beyond using technological solutions in an organization .

The concept implies using technology to implement the digital mindset , made up of the pillars we explained above.

The ultimate goal is to improve the company’s performance, making it leaner, more efficient and more productive, without ever failing to satisfy its target audience.

What caused the Digital Transformation?

Digital Transformation: What it is, Main Causes and Impacts
What caused the Digital Transformation?

If you search further on the subject, you will find many sources that provide a much more simplistic definition of digital transformation.

In some of them, the concept just means the process of using technology to improve a company’s performance . A structural transformation , therefore, and not a cultural one.

Based on this logic, we could simply answer that what brought about the digital transformation was the advance in available technologies.

This is because, with this new reality, it becomes a necessity to seek the adoption of these technologies so as not to be outdone by the competition, which uses them and increases their efficiency.

Not that this logic is wrong. But if it were just that, the only difference from the digital transformation to the processes that companies underwent in previous industrial revolutions would be the connectivity provided by the internet.

In reality, it’s more than that. The main cause is the new global context of the market and society , in which everything is more volatile, uncertain, complex and ambiguous (following the idea of ​​“ VUCA world ”).

One of the reasons for this reality is, of course, the technology that advances faster than ever.

However, it is necessary to understand that this is a more complex phenomenon than just assuming that there is a simple cause and effect relationship between technology and digital transformation.

What is the purpose of digital transformation?

Digital Transformation: What it is, Main Causes and Impacts
What is the purpose of digital transformation?

Digital transformation aims to use technology at the service of companies and society .

With that, we mean that, through new solutions, it is possible to mitigate and solve traditional problems with more practicality, speed and efficiency.

Digital transformation can contribute, for example, to:

  • Make communication faster and more assertive
  • Integrate sectors, making teams more in tune and collaborative
  • Access complete information in a more plural way
  • Automate processes and reduce bureaucracy
  • Favor decision-making through data support
  • Improve customer interaction through more instant channels
  • Facilitate performance analysis thanks to modern management tools.

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