Digital transformation is more than a change in technology these days. It helps redesign the functions of a company to be more efficient and innovative. It’s a continuous event as technology changes and new processes are introduced, enhancing the experience of employees and customers. According to, the projected annual growth rate for the digital transformation market from 2020 to 2025 is 16.5%, a growth from $469.8 billion to $1,009.8 billion. This article is for anyone considering their own transformation or looking to learn more about what digital transformation is. You will learn how it evolved throughout the years, and how it affects an organization.

History of Digital Transformation

Digital Transformation began with a focus on improving technology back in the late 1990s and mid-2000s. As stated by Forbes, digital transformation began with Systems of Records (SOR). SOR stored information using internal data and was readily available for employees. However, the data was not accessible to everyone in the company, causing data isolation between departments. What came next was Systems of Collaboration, which let the data be shared more easily. After Systems of Collaboration came Systems of Engagement, shifting how information was used. It allowed organizations to get insight from their data. Lastly, Systems of Productivity and Outcomes were introduced. This innovation digitized productivity and outcomes to optimize efficiency within an organization. Today, digital transformation is used in every industry, including retail, non-profits, and government agencies. However, some industries have been quicker to transform than others.

About the Technology

In a digital transformation, the technology is cloud-based and mobile-enabled, meaning they’re accessible via multiple devices as well as inside the office and remotely. There’s also smart technology, that includes software that helps with efficiency, and integration software that keeps applications on the same page. In today’s digital age, organizations have and store a significant amount of data, more than we ever did before. This data can be harnessed and used by the people of an organization to make smarter, better-informed decisions thanks to the progression in technology. This becomes one reason why digital transformation is increasingly important to modern organizations.

Where People Come In

Digital transformation supports the practices of the people in an organization with Experience Design. Additionally, people need to assist in the digital adoption of new technology and systems. Oftentimes a digital transformation results in a cultural shift, organizations will have to adapt to the changes and the way people interact within a company.

Evolution of Processes

The evolution starts with standardizing your organization’s processes, so they are similar across different departments. Afterward, see what can be changed and improved upon. Lastly, include automation to allow people to focus on value-added areas rather than repetitive tasks

How a Transformation Affects Data

Digital transformation helps people in an organization use their data for better decision-making. The data follows privacy requirements for protection. There’s also Data Governance, making sure the data is used and shared responsibly.

This post was written Collaborative Solutions, they are an exhibitor on the HRTech247 Workday Partners floor in the Partners Hall here.