Digital Transformation

Digital transformation redesigns customer propositions, operations and organizational capabilities through coordinated use of digital technology, data and new ways of working.

Entry type: Knowledge article

Field: Technology and Transformation

Last reviewed: 24 August 2026

Definition

Digital transformation is a material organizational change enabled by digital technology and data, involving business outcomes, operating-model redesign, architecture, implementation, governance and workforce adoption.

In this entry

Dimensions
Lifecycle
Important distinctions
Governance and value
Related concepts
Sources

Dimensions

Business

Customer experience
Digital products
Channel and revenue model
Process redesign

Technology and data

Cloud and platforms
Applications and integration
Data and analytics
Cybersecurity and resilience

Organization

Product operating model
Skills and workforce
Governance and funding
Change and adoption

Lifecycle

Outcome: define the economic, customer or risk result.
Baseline: assess processes, systems, data, costs and capabilities.
Target architecture: connect business design to technology and data choices.
Delivery: build, configure, migrate and redesign work.
Adoption: operate securely, measure outcomes and improve continuously.

Important distinctions

Concept	Meaning	Scope
Digitization	Converting information into digital form	Narrow and technical
Digitalization	Using digital tools to improve activities	May be incremental
IT modernization	Renewing systems and infrastructure	Technology-centered
Digital transformation	Changing organizational capability and economics	Business, technology and people

Governance and value

Business owners remain accountable for outcomes; technology teams own architecture and reliable delivery. Funding should connect releases to measurable value without sacrificing security, data quality or resilience. Adoption and operating cost matter as much as launch.