THE 3Ds - Digitisation, Digitalisation, and Digital Transformation (DX) (2024)

THE 3Ds - Digitisation, Digitalisation, and Digital Transformation (DX) (1)

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Brian Doyle THE 3Ds - Digitisation, Digitalisation, and Digital Transformation (DX) (2)

Brian Doyle

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Published Jun 13, 2023

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Digitisation, digitalisation, and digital transformation are three methods organisations have been using to evolve their business models, structures, operational practices, and recruitment and employee skillsets. Although it must be noted that the terms digitisation and digitalisation have been used interchangeably within the literature leading to some confusion within the research (1, 2). Over the past two decades advancements in technology as well as the increased availability of and reliance on data to make more informed business decisions has seen organisations rapidly transition from practicesof digitisation todigitalisation before embarking on adigital transformation journey. But what do these terms mean?

Digitisation: is the process of converting data from analog to a digital form and is now customary practice in the day-to-day business operations of most organisations as it has been demonstrated to be a key driver of business growth and sustainability (3).

Digitalisation: has been defined as the integration of the analog and digital worlds by leveraging technologies to enhance customer interactions, data availability, and business process (1).

Digital transformation (DX): is more complex as it not only harnesses new digital technologies, it also consistently uses modern technologies as drivers of cultural change laterally and vertically across an organisation (4). In saying that redefining the operational and strategic practices of a whole organisation is a challenging prospect which will call for strong leadership, consistent communication, collaboration and empowerment of organisational leaders across all levels of the business. So where do we start?

Communicate the Vision

  • Senior figures within the organisation must consistently communicate the new strategic vision to improving digital practices within the business to all stakeholders from the board room to entry-level.
  • These new practices may impact all aspect of the business from organisational and team structures to operational practices as well as recruitment and staff training practices.
  • By holding regular updates on the development, progress, and integration of new digital practices within the organisation key stakeholders are provided with a more in-depth understanding of the evolution of their business.
  • An additional benefit of clear and consistent communication from senior leaders can lead to the cross-pollination of knowledge and learnings between different departments and levels of the organisation whilst also fostering a culture of collaboration within the organisation.

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References

1.Eling, M. and Lehmann, M., 2018. The impact of digitalization on the insurance value chain and the insurability of risks. The Geneva papers on risk and insurance-issues and practice, 43(3), pp.359-396.

2.Reis, J., Amorim, M., Melão, N. and Matos, P., 2018, March. Digital transformation: a literature review and guidelines for future research. In World conference on information systems and technologies (pp. 411-421). Springer, Cham.

3.Bleicher, J. and Stanley, H., 2016. DIGITIZATION AS A CATALYST FOR BUSINESS MODEL INNOVATION A THREE-STEP APPROACH TO FACILITATING ECONOMIC SUCCESS. Journal of Business Management, (12).

4.Expert Group on Future Skills Needs, 2018. Digital Transformation: Assessing the Impact of Digitalisation on Ireland's Workforce. Department of Business, Enterprise, and Innovation.

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THE 3Ds - Digitisation, Digitalisation, and Digital Transformation (DX) (2024)

FAQs

What is DX in digital transformation? ›

Digital transformation (DX) is a strategy of enabling business innovation predicated on the incorporation of digital technologies into your operational process, products, solutions, and customer interactions.

What are the 3 D's of digital transformation? ›

THE 3Ds - Digitisation, Digitalisation, and Digital Transformation (DX)

What is the digital transformation DX strategy? ›

A digital transformation strategy is a detailed plan for using digital solutions to improve the physical aspects of your business across engineering, manufacturing, and service. Digital transformation (DX) is, in and of itself, a broad business strategy.

What is digitization, digitalization, and digital transformation? ›

While all three processes leverage technology, they differ in scope, impact level, and end goals, specifically: Scope: Digitization focuses on data conversion. Digitalization is about improving processes with digital solutions, while digital transformation is leveraging tech for a total organizational overhaul.

What does DX stand for? ›

Diagnosis (Dx) is the process of information gathering and clinical reasoning to determine a patient's health problem.

What is the concept of DX? ›

The differential dx represents an infinitely small change in the variable x. The idea of an infinitely small or infinitely slow change is, intuitively, extremely useful, and there are a number of ways to make the notion mathematically precise.

What are the 5 pillars of digital transformation? ›

5 Pillars of Successful Digital Transformation
  • People.
  • Technology.
  • Culture of Change.
  • Sense of Community.
  • Continuity (understanding DT is a journey)

What are the 4 P's of digital transformation? ›

Product, Price, Promotion and Place, the marketer's mainstay, are still current and required in today's environment. However, each of these Ps sits somewhat precariously on processes and technologies that cross departmental lines and ownership/responsibility.

What is DX framework? ›

Forrester's DX framework mainly focuses on customer experience and expectations. It emphasizes a customer-centric approach and integrates digital capabilities across the organization to drive value. Some of its key values include: Seamless, personalized digital customer experiences across touchpoints.

What is DX roadmap? ›

A DX roadmap indicates the starting point and defines the major activities -- and the many steps within each of those activities -- an organization needs to take to digitally transform itself.

Is DX or DT for digital transformation? ›

DT focuses on improving efficiency, managing digital assets, and creating new monetization strategies. DX exploits new technologies to add value and services for stakeholders by adapting to the ever-changing circ*mstances in the business world.

What is an example of digitization digitalization? ›

While digitization focuses on converting and recording data, digitalization is all about developing processes and changing workflows to improve manual systems. An example of this would be using digitized customer data from different sources to automatically generate insights from their behaviour.

Which comes first, digitization or digitalization? ›

Digitization is the first step in digital transformation, which must occur before digitalization is possible. In turn, digitalization is necessary before digital transformation is possible.

What is an example of digital transformation? ›

NIKE's Digital Transformation through SNKRS App

Using machine learning and recommendation algorithms, it uses advanced technologies. One of the company's mobile applications helps choose the best shoe based on a leg scan. A 13-point map of the feet is created by scanning the feet.

What does DX stand for in digital experience? ›

Digital experience (DX) is the collected responses a user or customer has when interacting with a brand. This includes digital experience platforms such as the company website, apps, social media, and chatbots.

What does DX mean in development? ›

Developer experience is the overall feeling developers get when they use a technical product in their workflows. One might say, it's akin to UX but from a developer's perspective. Developers are often called internal customers, so DX is the sum of their interactions and feelings as they work towards a goal.

What does DX mean design? ›

Developer experience or DX refers to how developers experience your software in the context of their development efforts.

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