What does "digital transformation" actually mean?

Digital transformation refers to people using information technology to transform their own enterprises. People replace non-digital or manual workflow by promoting digital workflow, or replace old information technology with newer information technology.

The progress of digital transformation in different regions is different. According to the statistics of McKinsey Global Institute's industry digitalization index in 20 16 years, the digitalization potential in Europe is 12%, and that in the United States is 18%. In Europe, the digital potential of Germany is 10%, and that of Britain is 17%, which is similar to that of the United States.

An example of digital transformation is the use of cloud computing. This reduces the dependence on user-owned hardware and increases the dependence on subscription-based cloud services. Some of these digital solutions enhance the functions of traditional software products (for example, Microsoft Office compared with Office 365), while others are completely cloud-based (for example, Google Docs).

Because service companies get regular (usually monthly) recurring income from subscriptions, they can provide funds for sustainable development with low risk (most software companies in history have to invest enough new functions and benefits in advance to encourage users to upgrade), and often provide more frequent updates in the form of agile software development internally.

This subscription mode also reduces software piracy, which is a big benefit for suppliers.

Ethnicity

With the introduction of the World Wide Web, the scope, dimension, scale, speed and effect of digitalization have undergone fundamental changes, which has brought greater pressure to the process of social transformation. Companies including Dell quickly used the World Wide Web from 1996 to 1997 to subvert traditional PC manufacturing companies such as IBM by selling products directly to consumers instead of through dealer networks or hobby stores. They browsed the websites.

In 2000, digitalization began to be more widely used as the concept and argument for the government to fully introduce information technology, which increased the use of the Internet and information technology at all levels.

In order to improve the understanding of problems and opportunities, similar development has been started in the general business environment. For example, in the European Union, an initiative called "Digital Single Market" was formulated and suggestions were made for the European Union's national digital agenda, which should gradually and actively promote the future social transformation, e-government and a more modern information society based on community, structure and creation.

Therefore, the debate around digitalization is becoming more and more important in political, commercial and social issues, which is related to the political work of community development, the new changes in actual business methods, the effective opportunities for organizations in operation and business process development, and internal influences. And its external efficiency. The digital transformation of 20 18 manufacturing industry is expected to create more than $370 billion in global value in the next four years.