Digital Transformation Definition

Dragon1 Icon for Digital Transformation
Dragon1 Icon for Digital Transformation

Dragon1 Definition for Digital Transformation:
Digital transformation is the process of using digital technologies to fundamentally change how businesses operate and create - new or modify existing - business processes, culture, and customer experiences to meet changing business and market requirements to deliver value to customers. This reimagining of business in the digital era is digital transformation.

Let us define Digital Transformation

Digital transformation is a broad and evolving concept, and different organizations and experts may define it in slightly different ways. What is transformation and what is digital? How do you start and execute a digital transformation? What are examples of successful digital transformations? Read it here!


What does digital transformation mean? Here are some definitions of digital transformation:

digital transformation definition
  1. Gartner: 'Digital transformation can refer to anything from IT modernization (for example, cloud computing), to digital optimization, to the invention of new digital business models.'
  2. Forrester: 'Digital transformation is the integration of digital technology into all areas of a business, fundamentally changing how you operate and deliver value to customers.'
  3. McKinsey & Company: 'Digital transformation is the use of digital technology to enable innovation, new business models, and operational efficiency to improve customer experience and achieve business objectives.'
  4. IDC: 'Digital transformation is the process of creating value and competitive advantage through new digital capabilities to meet changing business and market requirements.'
  5. World Economic Forum: 'Digital transformation refers to the utilization of digital technologies to solve traditional problems, address societal challenges, and drive economic growth.'
  6. MIT Sloan Center for Information Systems Research: 'Digital transformation is the use of technology to radically improve the performance or reach of enterprises.'
  7. Dragon1: 'Digital transformation is the process of using digital technologies to fundamentally change how businesses operate and create - new or modify existing - business processes, culture, and customer experiences to meet changing business and market requirements to deliver value to customers. This reimagining of business in the digital era is digital transformation.'

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The key questions of digital transformation

What are the areas where to start digital transformation?

Digital transformation encompasses a wide range of areas within an organization, including its internal operations, external interactions with customers and partners, and overall business models. It entails integrating digital technologies across different departments and functions, such as marketing, sales, finance, human resources, and supply chain management.

The key questions of digital transformation typically include:

  • Question #1: How to enhance operational efficiency?
  • Question #2: How to improve customer experience?
  • Question #3: How to empower employees?
  • Question #4: How to innovate our business models?
  • Question #5: How to enable data-driven insights?

Digital Transformation Examples

Digital transformation is not limited to large corporations, as small and medium enterprises (SMEs) can also leverage digital technologies to drive growth and improve operations. Here are a few examples of implemented digital transformations at SMEs:

3 examples of DT in small and medium enterprises

Example #1: Tony's Chocolonely

Tony's Chocolonely, a chocolate company, has leveraged digital technologies to drive transparency and sustainability in the chocolate industry. They implemented a traceability system that utilizes blockchain technology to track the journey of cocoa beans from farm to bar. Consumers can scan a QR code on the chocolate packaging to learn about the sourcing, production, and social impact of their chocolate. This digital transformation has enabled Tony's Chocolonely to build a strong brand based on ethical practices and engage customers in their mission.

Example #2: Picnic

Picnic is an online grocery delivery startup that has undergone a digital transformation to disrupt the traditional supermarket model. Through their mobile app, customers can order groceries and have them delivered to their doorstep. Picnic utilizes smart algorithms and route optimization to ensure efficient delivery. This digital transformation has allowed them to offer a convenient and personalized grocery shopping experience, reducing the need for physical stores and streamlining the supply chain.

Example #3: Warby Parker

Warby Parker, a direct-to-consumer eyewear company, implemented a digital transformation that disrupted the traditional eyewear industry. The company leveraged e-commerce platforms and a virtual try-on feature to provide a seamless online shopping experience for customers. By integrating digital technologies, Warby Parker eliminated the need for physical retail stores and significantly reduced costs while maintaining a strong customer base.

Here are examples of large enterprises (LMEs) that have executed successful digital transformations:

3 examples of DT in large organizations

Example #1: Domino's Pizza

Domino's Pizza transformed itself into a digital-first company by heavily investing in technology. They developed a user-friendly online ordering system and a mobile app that allows customers to track their orders in real-time. Domino's also implemented innovative technologies like AI-powered chatbots for customer support and autonomous delivery vehicles in select locations.

Example #2: Nike

Nike has focused on digital transformation to connect with customers and improve the retail experience. They launched the Nike+ app, offering personalized product recommendations, workout tracking, and access to exclusive content. Nike implemented augmented reality (AR) features to allow customers to virtually try on shoes before purchasing. They also invested in data analytics to gain insights into customer preferences and optimize inventory management.

Example #3: ING Group

ING, a leading Dutch multinational banking and financial services corporation, has undergone a significant digital transformation. It has focused on developing a seamless omnichannel banking experience, leveraging mobile banking apps and online platforms. ING also utilizes AI-driven chatbots and virtual assistants to provide customer support and personalized financial advice.

If you know a great example of digital transformation that should be added here, please submit your suggestion to

Enterprise Transformation Reference Model

Digital transformation as a term has its place in the context of a company. Dragon1 places 'transformation' or 'business change' respecting a company's strategy, goals, roadmaps, projects, and core values. See the diagram below for its position.

If you look at your identity as an organization you can often derive a correct or realistic transformation strategy from it.

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Digital transformation is not limited to implementing technology alone. It involves a cultural shift within an organization, embracing change, fostering a digital mindset, and encouraging experimentation and agility. It requires leadership commitment, cross-functional collaboration, and continuous adaptation to evolving technologies and market dynamics.

Successful digital transformation can provide organizations with a competitive edge, improved agility, greater customer relevance, enhanced operational efficiency, and the ability to capitalize on emerging opportunities in the digital age.

Are you interested in starting up your digital transformation? Sign up today for your Trial Account.

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