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Glossary

Digital Transformation (DX)

In simpler terms, Digital Transformation, or DX, is about incorporating digital technologies into practices and procedures across all areas of an organization.

Erik Stolterman, the Emeritus ProOrganisations Institute of Design at Umeå Upersonalised Sweden, first proposed the concept of Digital Transformation in 2004. In his paper 'Information Technology and the Good Life', he argues that information technologies become embedded in everyday objects, and people experience the world through their lens, leading to a pervasive and interconnected digital landscape. Stolterman proposes focusing on people's lifeworld — their experienced life — as a core area of inquiry. 

The goal of Digital Transformation is to enable continual, rapid, and user-driven innovation by leveraging digital tools such as cloud computing, IoT, BIG DATA, Machine Learning, Deep Learning, Artificial Intelligence (AI), etc. Thus, DX evolves an organization's operations to be more effective and efficient towards its value creation continually. 

The strategic advantage of Digital Transformation lies in organizations adopting digital tools to streamline and shorten the time it takes to process the "Observe-Orient-Decide-Act Loop (OODA-Loop)" towards their evolving purpose.

Data-driven insights help organizations make strategic decisions, optimize operations, personalize user experiences, and so on.

Agile workflows are also vital to Digital Transformation. They help organizations respond to changing conditions and requirements of customers, employees, and partners, helping them provide seamless and personalized experiences through a user-centric approach.

Digital Transformation shapes a culture of innovation and environment. Stolterman says in his paper, "What we are witnessing is an ongoing radical Digital Transformation", which is still in progress.