As an initiative within your organization, digital transformation pushes you to clarify what you want to improve and which processes could be enhanced with technology. A key element of this process is having a Digital Strategy. Digital Strategy focuses on exactly how new technology can change your business processes or business model. This distinction can be subtle, but it is important: digital transformation covers everything from thinking about how technology impacts the customer experience, your operational processes, your business models and even your organization’s culture, while digital strategy focuses on new technology itself and how it can “digitize” a business.
Traditionally, IT Strategy has often played the role of both digital transformation and digital strategy. But while IT strategy aims to determine which technologies to invest in in order to help meet business objectives, it’s usually done within a certain amount of isolation from the rest of the business. In contrast, the digital strategy looks to change business processes themselves from one form of technology to another, better option. This approach works with and beyond IT strategy to more comprehensively identify the connections between technology and your business objectives.