Digital transformation refers to the process organizations undergo when taking advantage of new digital technologies (such as new communication methods, the internet, AI and data mining, for example) in their businesses. It often results in a modification or restructuring of an organization’s business processes and procedures as well as a new approach to dealing with their customers and the overall market.
The process can disrupt traditional business functions such as sales, customer service and marketing because the digital age provides completely new methods for interacting and engaging with customers. It doesn’t mean that a business simply performs the same way that it used to except now more efficiently. Instead it requires refashioning the way business is done to take advantage of the possibilities that digital technology offers. It can often mean a radical change for organizations that now need to be more flexible and agile to continue competing in the new digital space.