Digital transformation

Digital transformation is the process of adoption and implementation of digital technology[1][2][3] by an organization in order to create new or modify existing products, services and operations by the means of translating business processes into a digital format.

The goal for its implementation is to increase value through innovation,[4][5] invention, improved customer experience and efficiency.[1] Focussing on efficiency and costs, the Chartered Institute of Procurement & Supply (CIPS) defines digitalisation as

the practice of redefining models, functions, operations, processes and activities by leveraging technological advancements to build an efficient digital business environment – one where gains (operational and financial) are maximised, and costs and risks are minimised.[6]

CIPS has also observed that "digital capability" can be used to support supply chain transparency and remote working.[6]

This became clear after the COVID-19 pandemic, when many knowledge workers adopted either remote or hybrid working environments.[7]

However, since there are no comprehensive data sets on the digital transformation at the macro level, the overall effect of digital transformation is still too early to comment.[8]