Digital Transformation – Let’s not overcomplicate it! Part 2

The consulting industry loves to overwhelm. This was the topic of my previous post. Consulting as an industry uses the concept of Digital Transformation to overwhelm their clients and convince them that the complexity of the mere definition means the subject is far too complex to accomplish without extensive outside (i.e. consulting) assistance. In the last post, I began the discussion of Digital Transformation and my industry’s ability to make it more complicated than necessary. Now I will dive into the specifics of my simplified explanation from the previous post.

Digital Transformation is the use of modern computer tools to create transactional visibility across an entire company for the purpose of improving business performance. 

The factors that will impact a company’s ability to create transactional visibility involve many aspects of the company such as the leadership philosophy, the internal processes, the underlying systems, and the willingness to create visibility (willingness being the most important ingredient in this recipe for success).

The heart of Digital Transformation is visibility of transactions. Let me explain in more detail by sharing a bit of business history.

Transactions are the events within a business that create value. Similar to how “plays” are transactions in football to create or prevent “scores,” there are transactions within every company to create value. In the case of a classic manufacturing company, the most significant transactions are: