In my previous article, I referred to Digital Transformation as the enterprise world catching up with the consumer world from a sophistication stand point. In a nut shell, it is how you take advantage of the technologies consumer world has to realign and transform enterprises to gain competitive advantage.

In this article, I would like to elaborate and define some characteristics of what Digital means for today’s enterprises. In my view, this McKinsey article, captures the highlights. Digital defines a broad range of technologies and applications that enable:

  1. More efficient automation,
  2. Better decision making,
  3. Stronger connectivity with customers and other external stakeholders, and
  4. More advanced data-driven innovations.

These technologies, together with business process redesign, make possible a new way of working that can fundamentally transform an enterprise. It is worth noting that all of the above four points are interlinked. For instance, data driven innovations could result in the remaining three.