One only has to look at the press in recent months, and even recent years, to realize that digitalization is ubiquitous in our society: Digitalization of commerce, public services, schools. Digitalization of agriculture, businesses, and of course, our social relationships…
But among all these major projects, transformation plays a predominant role. The latter is gaining increasing importance, mainly in the business world: transformation of the finance function, HR, Supply Chain. CSR transformation, technological transformation… there is even a Ministry of Transformation (and Public Service).
Let’s take a moment to consider these different terminologies: Am I launching a digitalization project or a transformation project? Perhaps both at the same time, after all? But then, is transformation serving digitalization or vice versa? Let’s try to clarify things.
Definition of Digitalization
The word “digitalization” appeared in the 1950s with the emergence of computing, before exploding in the late 2010s, shortly before the Covid-19 crisis. Since then, it has permeated our daily lives.
It is primarily a neologism that appeared in the 1980s, derived from the verb “digitaliser”, itself borrowed from the English “digitalize”.
Its not-so-obvious origin dates back to the 16th century and the Latin « digitus » meaning finger (or toe). Its numerical sense comes from the fact that numbers less than ten were counted on fingers. According to Larousse, digitalization is a process of transforming a company’s services (financial, commercial) through increased use of information technologies.
Digitalization would therefore be a means of achieving transformation.
What about Transformation?
Unsurprisingly, transformation originates from the Latin transformatio: trans- “across,” “beyond,” “on the other side,” -forma: “form”; -atio: “action” or “process.”
Transformation is therefore the action or process on the other side of the form. But Larousse explains it much more simply: it is the change from one form to another.
To continue with neologisms: “it makes sense.” We transform our relationships by digitalizing them, we transform our public services by digitalizing them, or we transform our businesses by digitalizing them.
However, it’s not that simple.
Serving Different Interests
In reality, digitalization and transformation do not serve the same interests and do not have quite the same consequences.
Digitalization often serves economic interests: efficiency, productivity, cost reduction, but also improves communication and collaboration, and provides access to new opportunities of all kinds.
Transformation, on the other hand, has only one objective: to improve a situation.
It is a necessity that responds to a survival issue (or competitiveness issue), whereas digitalization is the investment that enables this transformation, and from which a return is logically expected.
Transformation is a long-term, sustainable, complex process that will eventually take place and apply to a set of processes. Digitalization does not include this notion of duration. It is a process that constantly evolves to improve other processes by integrating new digital technologies.
But then, what is digital transformation?
To believe that in the 21st century, any organizational transformation could not be digital would be a deception. Talking about digital transformation is just a huge pleonasm, to be filed not far from the unshakeable “go up high” and its direct competitor “as of today.” Move along, nothing to see here.
Digitalization and transformation are therefore two concepts often used interchangeably, but it is important to understand their nuances:
Digitalization is a necessary step towards transformation, but it is not sufficient in itself.
Transformation is a deeper change that involves modifying an organization’s processes, structures, and culture. It uses digitalization as a tool to achieve its objectives.
Therefore, digitalization and transformation should not be confused. Digitalization is a tool; transformation is an objective.
In conclusion
To succeed in its transformation, an organization must have a clear vision of its objectives and a strategy to achieve them. It must also be prepared to change its processes, structures, and culture.
Digitalization is a challenge, but it is also an opportunity. By planning and implementing it effectively, organizations can position themselves to succeed in their transformation.
Thus, crossword puzzle enthusiasts, if you come across the words transformation and digitalization in a grid, tell yourselves that you are improving your situation by counting on your fingers!
