What is Digital Transformation?

Digital transformation (DX) is the transformation of lifestyles and business styles into better ones with the use of digital technology. As smartphones and the internet is spreading widely, and the number of people online is increasing, for 24/7 a day 365 days a year people’s lives become inseparable from the digital world. It is believed that inducing DX in each company’s business model will not only improve marketing effectiveness, streamline operations/reduce costs, but also change the value of people. 

The Definition of Digital Transformation

Digital Transformation (DX) is a concept proposed by Professor Eric Stoltermann of Umeå University in Sweden in 2004.

In short, it is to change the value of life and business style with digital technology. It aims to enrich people’s lives by turn the existing business frameworks and transforming them into better ones.

Digital Transformation is abbreviated as DX. In English, “trans-” is sometimes referred to as “x-“, which means an intersection, and Digital Xformation is omitted and now referred to as DX.

DX is where digital technology replaces the existing value provision process, but it cannot be said exactly what kind of digital technology is required for DX. What is necessary to create services that will bring about new value changes in a manner that suits each business model is a change in the value provision system.

In other words, it can be said that DX for sure is changing the mechanism on value provision. Then, the technology required to change the mechanism is based on the services to be manifested. 

Why Digital Transformation is gaining attention?

Along with time, current technological innovations, including IT technology, so far business processes are flexible in dealing with environmental changes, cost expansion with the rise of personnel costs, there is a sharp gap in various fields, such as work-related personnel, regardless of the company size.

In this era, companies cannot survive simply by improving conventional operations such as “increasing production efficiency, improving processing/providing speed, and reducing costs.” Inducing DX at each company and changing people’s values, businesses that are stuck in a competitive society will lead to the future.