Digital Strategy Vs. Digital Transformation: What's the Difference?
The terms "Digital Strategy" and "Digital Transformation" are often used interchangeably by people not in the know, so it's no wonder that the surrounding conversation can get confusing. They are actually not the same thing. Let us clarify.
What is Digital Strategy?
The key word here is strategy - an informed plan of action - one which revolves around using digital technologies to serve the needs of a particular group of people or business group. Digital strategies can be narrow in scope ("Let's use digital channels and app development to market our B2C company to consumers" as part of a digital marketing strategy) or broader ("Let's see how marketing with CRM, automation, monitoring, and other digital technologies can be more efficient and effective").
What is Digital Transformation?
A transformation is a process of (in some cases, drastic) change; therefore "Digital Transformation" simply means using the latest digital technologies and best practices to essentially build a brand new (and improved!) organisation, sometimes "from scratch". Technologies could include A.I., Content Management Systems, analytics, robotics, sensors, etc. and the best practices could be related to Business Process Management, continue innovation, etc. Ideally, one of the end results is allowing your personnel to focus on meaningful business evolution and to spend less time and attention on bureaucratic tasks.
Can You Have a Digital Transformation Strategy?
Of course. This would be the plan of action you develop in order to affect digital transformation. Planning out a digital transformation usually involves collaboration, communication, intelligent assessments, and innovative ideas and options. A strategy is absolutely required if you want to undertake a successful digital transformation. So, like the European Commission, you can absolutely have a digital strategy for a digital transformation.