Digital Transformation is one of the most important buzzwords for 2017 and 2018, but most workers inside the tech industry can’t define it - let me help.

Digital Transformation is a 3-step process but each step depends on the one before it. You’ll need to understand them from the beginning though.

1. Digitization: This is the work of turning physical work products into digital products. Examples of this would be like using emails instead of memos, tracking assembly lines using software instead of writing down metrics, recording music to MP3 instead of 8 track, and sending tax paperwork via PDF instead of mailed paper forms.
2. Digitalization: This is the work of changing your business processes based on the above.  Taking your now-digital data and changing process to better accomplish your core business practices.  Examples of this would be to automate assembly line optimizations and part requisitions and allowing your tax software users to speed up tax filing by using your online system which compiles their data from multiple sources.
3. Digital Transformation: This is the entirely new paradigms that can only emerge once the business is sufficiently digitized, digitalized, and emerging opportunities can be captured. These paradigms shifts are typically social-scale changes and industry resetting. Historical examples of this might be the entire music industry shifting to digital sales or the demise of local video rental stores. The changes in social interactions or dating and the way one goes about looking for employment.

You might notice that a lot of the things typically considered digital transformation might not seem to be the kinds of things that a single small company could foster, yet it has become one of the most sought after goals in IT Management over the past few years. 

My opinion on this is optimistic.  I believe digital transformation is only limited, at this point, by imagination.  Plain and simple.  It takes some real understanding of current business, some real unchained thinking, some real guts to propose the unthinkable, and then some real support from the business to pursue the things that will be the game changers tomorrow.

Further reading:

https://www.coresystems.net/blog/difference-between-digitization-digitalization-and-digital-transformation

https://sloanreview.mit.edu/article/dont-confuse-digital-with-digitization

http://www.enterpriseitworld.com/index.php/digitization-digitalization-and-digital-transformation-whats-the-difference-and-why-you-should-care/

https://www.coursera.org/learn/digital-competition-financial-services/lecture/sMS5u/beyond-digitization-digitalization