Whas is Digital Transformation ?

Satrajit Bhattacharya, Head IT, Future Group | Tuesday, 14 June 2022, 13:24 IST

Digital transformation is the process of using digital technologies to create new — or modify existing — business processes, culture, and customer experiences to meet changing business and market requirements. This reimagining of business in the digital age is digital transformation.


Not so long ago, businesses kept records on paper. Whether handwritten in ledgers or typed into documents, business data was analogue. If you wanted to gather or share information, you dealt with physical documents — papers and binders, xeroxes, and faxes.

Then computers went mainstream, and most businesses started converting all of those ink-on-paper records to digital computer files. This is called digitisation: the process of converting information from analogy to digital.

The process of using digitised information to make established ways of working simpler and more efficient is called digitalisation. Note the word established in that definition: Digitalisation isn’t about changing how you do business, or creating new types of businesses. It’s about keeping on keeping on, but faster and better now that your data is instantly accessible and not trapped in a file cabinet somewhere in a dusty archive.

Think of customer service, whether in retail, field ops, or a call centre. Digitalisation changed service forever by making customer records easily and quickly retrievable via computer. The basic methodology of customer service didn’t change, but the process of fielding an inquiry, looking up the relevant data, and offering a resolution became much more efficient when searching paper ledgers was replaced by entering a few keystrokes on a computer screen or mobile device.

While every digital transformation initiative will have its own specific goals, the main purpose of any digital transformation is to improve your current processes. Digital transformation is important because companies must evolve to remain competitive in their industry. If you aren’t evolving, you’re falling behind. Some of the key benefits of digital transformation are 

  • Increases productivity while reducing labour costs — Using technology to work more efficiently is one of the most impactful ways to transform your business. 
  • Improves the customer experience — Techy customers want a great experience through multiple touchpoints — mobile apps, social media, email, live chat, etc. Digital transformations are the driving force behind improved customer experiences.
  • Drives innovation, keeping you ahead of your competition – Your competitors are looking into digital transformation regardless of whether or not you are.

Simple Examples of Digital Changeovers around us …

Job Function

Digital Transformation


Spreadsheets to a Cloud CRM


In-person training to online e-learning.

Customer support

Call support centre to online knowledge bases and self-support portals.


Digital Transformation


Virtual visits,  telemedicine, and patient portals


Online check-in, amenity booking tools


Virtual quotes and online claims process


Loyalty cards, e-commerce stores

In prevailing pandemic age, lockdown and social distancing started, it was digital transformation – and the IT departments that carried out the work – that helped businesses carry on functioning as normally as possible in the most challenging of conditions. CIOs and their IT teams had to spin-up technology solutions to the challenges that their businesses faced overnight.

Digital transformation strategies were fast-forwarded at breakneck speed. Executive teams, that might once have hesitated over the implementation of a multi-year investment in video-conferencing and collaborative technologies, tasked their IT departments with establishing remote-working strategies in days or even hours.

So to conclude, digital transformation is pivotal to business transformation. It’s a transformation that’s being driven by the basic desire to make work better for everyone, from employees to customers. Digital innovations in marketing, sales, and service built closer customer relationships and empower employees across all industries.