{"id":5397,"date":"2015-03-30T16:46:42","date_gmt":"2015-03-30T14:46:42","guid":{"rendered":"https:\/\/staging.alainveuve.ch\/why-we-need-to-replace-the-term-digital-transformation\/"},"modified":"2015-03-30T16:46:42","modified_gmt":"2015-03-30T14:46:42","slug":"why-we-need-to-replace-the-term-digital-transformation","status":"publish","type":"post","link":"https:\/\/www.alainveuve.ch\/en\/why-we-need-to-replace-the-term-digital-transformation\/","title":{"rendered":"Why we need to replace the term digital transformation!"},"content":{"rendered":"

Since I published the graphic on digital transformation<\/a> almost a year ago, I have been asked about it countless times and the graph model has been praised several times. “Digital transformation” has become the buzzword par excellence in the last two years. Agencies, consultants and other service providers proclaim loudly that they have been doing nothing else “for the last 10 years”. Little by little, they have all changed their wording on websites and other channels. Today, everyone is transforming something. <\/p>\n

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This is a good thing, because it finally shifts the focus away from isolated solutions and towards a more fundamental, strategic approach. On the other hand, the term “digital transformation” is misleading in a way that is not without danger. This applies to both the “digital” and “transformation” dimensions. Let me explain why. <\/p>\n

Not just “transformation”<\/h3>\n

Many decision-makers have now realized that the transformation of society towards digital has a strong impact on the economy and that there is therefore a need for action.<\/p>\n

Transformation implies a process that has a beginning and an end.<\/p><\/blockquote>\n

In conversations with decision-makers, I often find that this is how it is perceived. In other words, you bridge a gap, transform your company, make yourself fit for the digital transformation and assume that everything will be fine after that. <\/p>\n

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However, the reality is quite different. Technological progress is accelerating exponentially and new technologies are coming onto the market at ever shorter intervals. Of course, not all technologies are immediately and unconditionally accepted by society. But as soon as a technology is used to simplify people’s lives and\/or free them from suffering, it is adopted. Humans are incredibly quick at this. That mankind cannot keep up with technological progress, that he cannot comprehend it, is a short-sighted fairy tale. Such a mindset may apply to individual generations for a certain period of time. However, the history of mankind and technology has shown that people are incredibly quick and flexible when it comes to accepting new things (even radical ones). These things only have to be of concrete use to them. <\/p>\n

You don’t believe that? Let’s do a thought experiment: Imagine you are completely against stem cell research. You reject everything that has to do with it. Unfortunately, your child is now terminally ill and the only hope would be a therapy based on stem cell research. How would you decide? I know you would opt for the therapy. Precisely because we are human. We are entering a philosophical and ethical field of tension here, and I think everyone has to find answers for themselves. <\/p>\n

Decision-makers in companies would therefore do well to understand that what they have now come to know as digital transformation is in fact only the beginning of an era in which the economy will be fundamentally restructured and its players will have to act according to completely different laws.<\/p><\/blockquote>\n

These are fundamental upheavals that will have a profound impact on the way we live, how we make a living and how we act as a community. There will be social and economic losers. This can be tragic for the individual, but it has always been the case. And it will mean a better life for most people. This has always been the case when we look at technological development. Change is always painful at the beginning because it means saying goodbye to ideas, investments and expectations and embracing something new. This ability will be in great demand from company managers in the future. Those who master this will be the winners of this change. <\/p>\n

Not just “digital”<\/h3>\n

Digital implies that the changes in society and therefore in the economy are driven solely by information technologies.<\/p><\/blockquote>\n

This IT development is obvious to everyone, especially with the advent of smartphones and mobile networks. However, progress in other technological areas is just as resounding and, because technology combinations are increasingly being used in products, also much more comprehensive. The progress that has been made in medicine over the past five years is no less significant. But they are not as omnipresent in everyday life. Fortunately, it has to be said. Who wants to deal with illness voluntarily? <\/p>\n

Entrepreneurs who only focus on digitalization will therefore have a revival experience with other technologies that come into their industry. They will be surprised again, as they were 5 years ago with the digital transformation. <\/p>\n

Buzzwords are ridiculous, but they have a purpose<\/h3>\n

Of course, buzzwords are ridiculous and the IT and web industry is a master at constantly propagating new terms. Nevertheless, they are important. In a rapidly changing environment, they ensure that market participants engage with topics. Perhaps only superficially at first. But over time they become more profound. It’s the same with the buzzword “digital transformation”. I think it’s slowly sinking in everywhere that there are technological challenges that need to be tackled. So the buzzword “digital transformation” has done its job. It can be retired with a clear conscience. As you can read above, I am of the opinion that it also needs to be phased out because it is misleading. <\/p>\n

A new buzzword is needed<\/h3>\n

And yet decision-makers must be sensitized to the fact that<\/p>\n

1. that technological improvements are continuing at an unprecedented pace.
\n2. that what has found its way into companies as digital transformation is only the beginning.
\n3. that a constant, intensive change process must be established in every company as a result.
\n4. and that it is the task of company management to curate and promote this change process.<\/p>\n

How could this be put into one or two words? In a way that all congress attendees can understand? “Industry 4.0”, “Enterprise 4.0” and “Technological Revolution” are not it. <\/p>\n

In my opinion, a term that would describe the challenge much better is“perpetual disruption<\/strong>“. On the one hand, it makes it clear that the change process is perpetual and, on the other, that it has a disruptive, far-reaching dimension. Because that is exactly what the future entrepreneurial challenges are all about. <\/p>\n

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