Digital Transformation Requires Fundamentally Revising the Business Model

Many organizations are going about digital transformation the wrong way: they don’t recognize that it means fundamentally revisiting your business model from a customer-first perspective. Common approaches, like setting up innovation teams or labs, aren’t capable of tackling the fundamental, organization-wide shift in mindset that needs to happen. Indeed, many organizations look simply to digitize their existing practices; but, this is not sufficient for real transformation. Real transformation means reexamining how the organization creates value and why, not just digitizing what the organization already does.


Related

Citations

Gupta, Sunil. Driving Digital Strategy: A Guide to Reimagining Your Business. Boston, Massachusetts: Harvard Business Review Press, 2018.

Leinwand, Paul, and Mahadeva Matt Mani. “Digitizing Isn’t the Same as Digital Transformation.” Harvard Business Review, March 26, 2021. https://hbr.org/2021/03/digitizing-isnt-the-same-as-digital-transformation.


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