Digitalization was what was implemented during the trend of the 90s and 2000s. It meant transferring analog content and processes into digital formats. Music became MP3s, books became PDFs, forms became online forms. But one thing remained the same: the mindset. People took the analog and tried to transfer it to digital with as little loss as possible. Business models often stayed the same—just digitized.
This phase was important, but it was not transformation.
What is Digital Transformation?
Transformation begins where digitalization ends. It means thinking digitally from the start—without the detour through analog models. It's not about digitizing what exists, but about developing entirely new business models, processes, and ways of thinking that are only possible through digitalization.
An example: Music streaming. Digitalization made it possible to store and transfer music files. But only transformation brought forth Spotify—a business model that isn't based on selling albums, but on access to music as a service. The subscription economy is not a digitized CD sale, but a new paradigm.
Typical Definitions and Academic Perspectives
In university teaching and among many experts, digital transformation is often described as a comprehensive change that affects technology, organization, and society. According to this teaching, technology alone is not enough—it requires new business processes, workforce retraining, and sometimes even complete reorganization. Transformation is therefore not only technological, but also cultural and structural.
Others naturally also point to AI as one of the most effective technologies for changing the way we work, but the real lever lies in redesigning organizations.
Societal Impact
Transformation changes not only companies but also societies. The way people consume content, work, learn, and network is being reimagined. Platforms, AI, automation, and data-driven decisions are not digital copies of analog processes—they are something new.
Conclusion
Many organizations believe they are transformed because they have digitized. But this is a fallacy. Those who only digitize remain trapped in old thinking. Transformation means breaking away from this thinking and going new paths that were not possible before.