I’m not one to overly debate semantics, but I believe that digital transformation and business transformation have some fundamental differences. Also, if you follow my methodologies on digital transformation, then change management evolves into what I call transformational change.

Business Transformation versus Digital Transformation

Let’s peruse one of the definitions of business transformation. In Wikipedia, business transformation is about, “Making fundamental changes in how business is conducted to help cope with shifts in the market environment,” and, “top management and other senior stakeholders use the opportunity to address these causes in ways that fundamentally alter the paradigm of the organization.”

In that respect, digital transformation is a form of business transformation. But using my definition of digital transformation, “Digital transformation about looking at the business strategy through the lens of technical capabilities and how that changes how you are operating and generating revenues,” you can see that digital has additional factors. It signifies a shift in strategy, not only because markets are changing, but because there are fundamental industry changes driven by technology, data, and experiences.

If leaders only consider markets and new operating models without looking at their business through a digital lens (discussed in my book, Driving Digital), then they may steer the ship in the direction of how markets operate today. A digital transformation must anticipate where markets will be today and in years to come – driven by explosive changes in technology, data / AI/ analytics capabilities, and evolving user experience expectations. Organizations can have a better chance of avoiding disruption by putting these factors front and center to there strategy, and that’s why digital transformation is different than business transformation.

Driving Digital’s Transformational Change