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Digital transformation vs. business transformation: Both are critical to brands’ success

Digital transformation

Evolution is key to any brand’s success, especially in a fast-paced world where technology and opportunities are constantly changing. Standing apart from competitors requires continual evaluation, pivoting, and growth.

But what does it really mean to transform? Is a digital transformation the same as a business transformation? And if not, when it comes to digital transformation vs. business transformation, which is more important?

The short answer is that digital transformation is one component of a broader business transformation – but each have their own nuances that are important for brands to embrace.

Business transformation typically describes large-scale company goals: for example, becoming an agile enterprise, building muscle as a serial acquirer, growing into a global partner, or being truly customer-centric. Business transformation implies a large-scale shift in how a company operates; it involves changes in mindset, structures, incentives, habits, core capabilities, processes, and technology.

Digital transformation, on the other hand, can be part of a broader business transformation but can also be a stand-alone initiative within a company’s existing framework. Digital transformation focuses specifically on what companies can do to become more digitally enabled and typically includes activities like:

Still, it’s difficult to focus solely on one type of transformation these days. Digital transformation inherently involves technology, but it also entails critical elements of business transformation.

Digital transformation initiatives: Alignment is important

When it comes to business transformation and digital transformation, the greatest digital technology in the world won’t help a company if it’s not integrated well into the broader business operations. After all, adding digital channels to an already-poor customer experience will just result in more bad experiences.

Businesses looking to transform in some way typically have two main motivations: there’s a strategic business challenge they want to overcome, like going direct to consumer or increasing market share; or they’re under pressure to reduce the cost to acquire or cost to serve, and their current technology options are too limiting.

Too often, companies make the mistake of not aligning the strategic and the tactical goals, or they lack alignment between the business and IT. Working with an experienced business and digital transformation partner like TTEC Digital can help.

Digital transformation often starts within a company’s IT group, since it’s most familiar with the technology needs. But TTEC guides clients through an important part of the process, ensuring any digital transformation is holistic, synchronized with the business and customer strategy, and will work within the company’s culture and organization.

At TTEC, our goal is to drive alignment and impact as fast as possible, but we’re also interested in the long term efficacy of solutions. Businesses that are going to invest time and money into digital transformation should do all they can to ensure it will succeed and accomplish the broader interest of the business

Digital transformation for business: Rethink old habits

It can be tempting for companies embarking on digital transformation to rely on traditional metrics when evaluating its success – but they shouldn’t. It doesn’t make sense to evaluate new technology or processes by older standards.

Brands shouldn’t measure the efficacy of chatbots, for instance, the same way they would associates. Bots and associates may both be important parts of a CX strategy, but they represent very different channels and shouldn’t be judged the same way.

When assessing results – and beyond – digital transformation and business transformation both require new ways of thinking, which can be challenging at first. It’s not enough to have the right technology, or even the right people and processes; brands need to embrace a new way of thinking and have a solid framework for moving forward.

Working with an experienced partner can help brands break out of their traditional mindset and realize what innovation is possible. Once companies take a comprehensive look at how transformation will alter all aspects of their business – customer experience, employee experience, operations, process and bottom lines – they’re truly ready to embark on meaningful transformation.

If you are looking for advice or would like to talk with a transformation expert, connect with our digital transformation consulting experts.

More business transformation and digital transformation resources

We hope you enjoyed this article looking at the similarities and differences between digital transformation and business transformation. To explore these topics in even more detail, here is a collection of additional reports, best practices, and strategies.

ttec journal

CCW market study on the state of contact center technology, featuring TTEC : Contact center technology is evolving and improving. But there are still challenges to overcome, along with opportunities to seize. Get this market study for exclusive research and insights about the state of the technology landscape and how contact centers can use innovative tools and strategies to take customer and agent experiences to new heights.

Five Essential Steps to Customer-Centric Digital Transformation: Regardless of your product or service, your company likely interacts with customers and prospective customers every day. Shouldn't your customers be the focus of your business strategy? But the cultural shift of moving from channel-centric to customer-centric business processes can feel like a mammoth undertaking. Don't worry! In this Contact Center Digital Transformation Strategy Guide, our technology transformation consulting team explains the five key steps to build digital solutions and business models that improve customer satisfaction, reduce cost, and increase revenue.

The Ultimate CX Digital Transformation Workbook: Achieving digital transformation success in the contact center starts with a tactical cloud migration plan – one that has business and technology goals aligned. Our management consulting team has designed a 7-point digital planning and business processes workbook to help facilitate more productive CX transformation discussions between IT and business decision makers within organizations to drive business outcomes.

Customer Experience Digital Transformation Ecosystem: When applying digital transformation to your tech stack, it should help create connected, contextual conversations. Historically, digital business transformation is challenging because of the numerous technologies, processes, and systems in place. Rather than deploy disparate technologies that create siloes, a better approach is to leverage a holistic, cohesive CX ecosystem built with innovative digital tools.  This approach to digitizing business allows your company to orchestrate, integrate, automate, and operate amazing digital-first customer experiences.

Digital Transformation Maturity Across the Enterprise: A recent report, “The State of Digital Transformation,” echoes what business leaders of every stripe are realizing: digital is pervasive. Firms are under pressure to adapt or create new business models, processes, and operations that reflect the fast, personalized, and convenient services that people have come to expect from a digital economy. Indeed, technology transformation initiatives are maturing into enterprise-wide movements that have an impact on all companies offerings.

Digital Transformation or Bust: Retailers and others are battling to adapt to an economy where flexibility and proactivity win the day. In this article, our digital transformation consultants outline the top 10 objectives retailers and other companies must pursue in order to achieve operational efficiency and stay ahead of the competition.

Contact Center of the Future: Digital Transformation Best Practices: Customer demands are higher than ever. Whether speaking with an associate directly or utilizing automated self-service, they expect all channels to be connected in real time. Meanwhile, artificial intelligent, machine learning, robotic process automation, and social media are just some of the new interactions that are drastically changing customer and employee experiences in the contact center. That is why the contact center of the future is not a siloed, multichannel call center, but a cloud based omnichannel contact center that provides a data driven 360-degree view of the entire customer journey. In this short video discover how to enable digital transformation and achieve the contact center of the future... today.