What is Digital Transformation and Why is it important?

What is Digital Transformation and Why is it important? | Digital Transformation | Emeritus

Digital transformation has become mandatory for businesses to succeed in today’s market. It is a multifaceted process that helps improve business efficiency and agility, enhance customer experience, and unlock value for different business entities.

In this article, you’ll learn:

  • What is digital transformation?
  • What is the significance of digital transformation?
  • What is a digital transformation strategy?
  • How to enable digital transformation in business?

What is Digital Transformation?

Digital transformation refers to IT modernisation, digital optimisation, reinvention of business processes, and the adaption of digital marketing methods to reach a wider audience.

Simply put, it is the process of integrating digital technologies and solutions into every business area.

Benefits of digital transformation in business

  • Improves efficiency of business operations
  • Enables large-scale automation
  • Reduces human errors
  • Cost-efficient

Important elements of digital transformation

Digital transformation is a strategic transition that requires companies to focus on three foundational elements to attain success.


Digital transformation digitises business processes by employing modern technologies.
The transition leads to the implementation of robotics, AI, machine learning, deep learning tools and techniques in all areas of business and computerisation of data collection process.


There are various advanced-level analytical and technological changes that a business goes through during digital transformation. These changes lead to demand for data scientists and analysts with expert-level knowledge to handle modern technologies and perform complex business tasks.


In a digital world, humans react differently. So, companies must make behavioural changes in the organisation for a smooth transition. They should also ensure that everyone understands and values the need to modernise business processes.

Why is digital transformation necessary?

Here are some points that highlight the importance of digital transformation:

Transforms customer experience

Digital transformation is critical in enhancing customer experience. Being in sync with the latest technology helps brands align with customer requirements, leading to increased customer satisfaction and experience.

Here are some factors that have led to enhanced customer experience:

  • Instant service
  • Seamless omnichannel experience
  • Personalised customer experience

Activates new channels of communication

Digital transformation in business creates new channels of communication. Emails, mobile applications, chatbots, and social media are modern digital communication channels activated in transitioning companies.

Harnessing the full power of these types of digital marketing and modern channels will prove to be a game changer. It will help you enhance customer experience, increase revenue, and build a loyal customer base.

1. Improved innovation and agility

Digital transformation innovates businesses by modernising business processes, introducing advanced technologies, and implementing new high-value and agile workflows.
Continuous innovation helps businesses gain a competitive edge over others and be more aware of new trends and opportunities that can be exploited to remain at the top.

2. Automates business processes

Implementing modern technologies like AI and machine learning creates intelligent workflows that simplify operating models, increase productivity, and enable employees to make better decisions faster.

3. Protects against disruption

Digital transformation helps companies implement technologies and best practices for faster product creation, enhanced customer experience, and agile business models. These technologies are competent enough to respond quickly to the shift in market trends, customer expectations, and competitors’ strategies.

What are the drivers of digital transformation?

Customer expectation has been the prime driver of digital transformation. Besides that, changing market trends and evolving competitor strategies are also drivers of digital transformation.

Digital transformation Strategy

To drive significant changes in companies, it is essential to have a concrete plan in place. A digital transformation strategy is a business strategy that reshapes the way your business processes work.
A digital transformation strategy is a detailed map that guides you through digital transformation.

Here are two principles to consider while developing a digital transformation strategy

  • Start considering factors that can enhance your target customer’s experience, and create a positive and growth-oriented work environment.
  • Determine how the change will affect the operation of the company.

How to enable digital transformation in your company?

Here are some tips on enabling digital transformation in your company.

  • Consider it as a business transformation to enhance customer experience, increase productivity, and embark on a journey towards automation
  • Have a clear vision about how to enable transformation and which is the right transformational strategy for your organisation
  • Fund digital transformation as an investment to sustain in the market for an extended time.

Interested in digital transformation, digital marketing or IT modernisation? Explore Emeritus India’s certificate programmes offered in association with reputed institutes like IIM, IIT, and ISB.

Our advanced digital transformation courses will equip you with the latest digital tools and techniques to help you develop innovative strategies.

About the Author

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