Digital Transformation: What Is It Really?

 

                            Image by vectorjuice on Freepik

The IT world is really very good at spinning up buzz words. It almost feels as if some there is hidden part of Madison Avenue that is dedicated to generating geekspeak. One of the latest buzzwords that you probably can’t go a day without hearing it mentioned at least once is digital transformation. If I had a dollar for every time someone asked me what digital transformation is I wouldn’t be writing this blog article right now, I would be sitting on a beach in Mexico sipping a margarita. All kidding aside, let’s dig into what this now ubiquitous phrase actually means.

Definition

Okay, so this is the hard part because digital transformation is one of those phrases that gets used for a lot of different things which makes defining it sometimes almost as hard as nailing Jell-O to a wall. If you really stop to think about it though, digital transformation has been around, at least in theory, since the mid-1970s when the predictions of the paperless office started. Interestingly enough, we still haven’t accomplished the paperless office, but we have coined a new term that aims to accomplish that and more.

So, let me talk about what digital transformation is from my experience. Just for context, I am a CIO in the healthcare industry with experience working with large group practices. When I think about digital transformation, my first thoughts go to those things in the business that aren’t digital such as paper based forms that someone has to fill out, manual processes that require an employee to do something or touch a record (electronic or paper) for which that touch really doesn’t add any control or value, reminder phone calls, collaboration or communication processes that involve sending files to a bunch of different people and then having to somehow process those changes back into a master file, etc. These are the types of processes that are ripe for being transformed in some way to a digital process.

Practical Application

My first order of business when someone asks me how they should apply digital transformation to their organization is to ask them about what kinds of paper they are still passing around and storing. These are often the processes where you are going to save the most time and money moving to a digital process. Think about going to a new doctor for the first time and they hand you that packet of papers to fill out that feels like you are closing on a new house. With the right technology in place, that process can be digitized through the use of electronic forms which are much easier for the patient to fill out, send the information directly to the system that needs it without any manual data entry, and eliminates having to either scan or store the original paper document. The savings with this simple process are enormous and the improvement in the overall patient/customer experience is huge. It used to be that organizations doing these things were forward thinking. Now, if you are not doing this or at least considering it, you are probably way behind your competition.

That was a pretty specific example but consider processes such as how you onboard your new employees. How much paper are you generating through this process that has to be processed in some very expensive way? Or think about your expense reimbursement process. Does someone still have to fill out a form (usually in Excel) and print this out and apply a wet signature to it and interoffice it to the accounting department? If so, that process probably often costs as much or more than the amount of the reimbursement being generated. This, in my opinion, is where digital transformation shines. It is an opportunity to take a look at the most mundane, inefficient processes in your organization and determining whether there is a way of applying technology to those processes to make them faster and cheaper.

Small Wins Matter

While grand projects like intranets or document management systems are also part of digital transformation and usually tend to get most of the coverage we hear about, starting with smaller, impactful projects can offer immediate returns. These quick wins can build momentum and justify those larger initiatives later.

In summary, digital transformation is about identifying inefficient processes in your organization and applying technology to make them faster, cheaper, and more efficient. Start small, think big, and watch your organization thrive.