The term “digital transformation” has become more widespread in recent times, and the use of this concept has become prevalent in various sectors, whether they are technological, educational, commercial, medical, industrial, agricultural, or other sectors. Do we need to engage in digital transformation and use this term just as a race to adopt technology or a modern trend, or is there real value that we should prepare for and benefit from to truly have a digital transformation that reflects on improving the quality of life and harnessing it to change traditional business models and contribute to building the digital economy.
It should be noted here that digital transformation is not an end in itself but a means, and it is a very important empowerment factor. Transformation in each sector forms a pillar of the digital economy. We will not achieve a strong digital economy without readiness, work, and responsibility from everyone, whether individuals at the personal readiness level for developing digital skills; or companies and institutions at the level of changing business models, developing human resources, thinking of innovative projects, improving service levels, or at the governmental level by establishing and implementing supportive policies for digital transformation. Harmony among the three parties (individuals, companies, governments) is the key to success in digital transformation and building a solid foundation for the digital economy.
It should be clarified that there is a fundamental difference between “change” and “transformation”, where change is suitable for producing a better version of the past and is required to maintain and update the system, while transformation creates a new future without constraints from the past and opens up a wide space for innovation. A transformation project also requires a fundamental transformation in several areas from various aspects of all companies and institutions. Companies must step out of their comfort zone to keep up with competition and progress; otherwise, they become vulnerable to risks and losing opportunities to survive in a constantly changing and competitive world. There is no industry, trade, service, company, or sector immune to competition and disruption due to entering the digital world.
Significant progress in the development of communications and information technology has brought about radical changes in lifestyles in various fields, at the individual, societal, and economic levels, leading to a change in the methods and means of executing economic activities. This has produced a new type of economy called the digital economy. The shift to the digital economy has positive effects on all levels and is considered a driver and a source of national income in many countries. It creates a fertile environment for investment, attracting foreign currency, and boosting the country’s economy. The digital economy evolves at a tremendous rate and is the most important engine for innovation, high competitiveness, and significant growth. It contributes to changing our lives in limitless areas, starting from the way we shop, communicate, learn, work, and in other areas such as healthcare, industry, and agriculture.
Furthermore, in the digital economy, traditional industries are reshaped and new business models are created, enhancing the quality of products and services provided to customers. The digital economy offers vast opportunities for various projects and provides a fertile ground for small, medium, and large companies to develop and grow their businesses. The digital economy also serves as a wide gateway for innovation, removing geographical, temporal, structural, and institutional barriers.
By Engineer: Belal Khalid Al-Hafnawi
Specialized in the Communications, Information Technology, and Digital Transformation sector
How to Keep Up with Digital Transformation Part One
