Why Digitalization is not Digital Transformation

different views

Two topics often uses as a synonymous, but different. While this topics are also mixed with in articles it is important to clarify the differences.

There is for sure an overlap of Digitalization and Digital Transformation. Both topics needs each other. Why? See this picture:

Digitalization vs DigitalTransformation

While digitalization is about digital tools and processes, digital transformation focus on the customer, his experience and how to adopt the business model.

To build not just a Customer Experience which is setup by ourself we need digitalization. This helps us to interact directly with the customer and understand him on a 1:1 base. As much as we are digitalized as much we can pay attention on the customer to build a “Customer’s Experience” instead of a “Customer Experience”.

it is that easy as shown in this picture above. This helps us also to find an answer who should be responsible for CX. Sometimes it is hung up in IT and sometimes in Marketing. the customer doesn’t care about internal structures. That’s why CX is an holistic topic in the entire company. So everyone has it’s part in it. IT is focussing on the digitalization while marketing (and others) are focussing on the experience. In a long term vie we need a re-org of the company structures, but this is not important for now.

Everyone in a company is contributing into the Customer Experience.

Corona just push the digitalization in an amazing way. With this we need to raise also our efforts in direction of digital transformation. Companies need to adopt their business model to the new normal and keep the connection to their customer To reach / gain trust and loyalty which is part of CX.

So we see main topics with 4 very important behind. A lot to do. The most important point is not to build the right mindset around this and move forward.

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