Digital transformation

Digital transformation is the renovation of an institute or organization through the use of digital technology to improve the way it performs and serves its constituents. Digital refers to the use of technology that generates, saves and processes data. The term transformation means fundamental change to an organization's day-to-day business from the types of products and services it produces to how it delivers them. An organization in need of a transformation -- whether a business, government agency, utility or service such as a healthcare provider -- typically responds to a change in the marketplace and consumer demand for a product or service. Simply developing technology alone is not digital transformation but changing an organization to reap the potential of those technologies is digital transformation. One example of a company that has undergone successful digital transformation is Nespresso. The maker of specialty coffee machines, an operating unit of Switzerland-based Nestle Group, deployed a cloud-based customer relationship management system that offers customers multiple channel access to shopping and customer service. They can reach the company whether they use the website or a mobile device or visit a store. A single view of each of its customers (360-degree view) has allowed Nespresso to move into more markets and improve sales.