Digital transformation is the most important priority for CEOs around the world. At least not in this century – the time for businesses to innovate in terms of business models, technology, and respond to customers’ constantly evolving preferences. But digital transformation is still often misunderstood, everyone has a different definition for it. George Westerman – Professor at MIT and author of “Leading Digital” defines digital transformation as: “The use of digital technology to radically improve the performance or reach of a company”. While the definition seems simple, the reality is much more complicated, so there are fundamental myths among digital transformation leaders. In this Tech Town article, we’ll dissect those myths.

Mistake 1: Digital Transformation is Led and Owned by a Chief Digital Officer

CDO does not own digital transformation, neither does CIO, COO or CMO. The fact is that digital transformation is no different from business transformation, but business transformation today defaults to businesses using digital tools and technologies, so that process is called Transformation. number.


The leaders of the business including business owners, chairman of the board of directors, executives, … must have a clear vision of the destination of the business after passing the digital transformation process, and communicate that with the staff.


One of the best examples is General Motors Co.(GM), which set a vision like this: “For over 100 years, GM has always been a leader in the global auto industry. And the next 100 years will be no different.” GM CEO Mary Barra added that GM is transforming like no other, investing $500 million in Lyft to join the platform, electric vehicle program and digital experiences. GM OnStar is what is made to reinvent and transform their business.

Mistake 2: Digital transformation is not related to business metrics

There was a time when companies were racing to create their own “dotcoms,” which is a fashionable trend in the business world. Now, almost all CEOs are looking to go digital, either because of great “PR value,” or because analysts want them to. However, those are the wrong reasons to go digital. The problem of digital transformation must produce results that affect real metrics such as: revenue, profit, cost, customer interaction, retention or return – of course, results. positive results. If we are trying to convert numbers and don’t know what and how much to change, then the problem of converting numbers is not worth doing.

Mistake 3: Digital transformation is only about digital, not IT

In the field of technology, front-end (website, app, store, …) and back-end (customer relationship management system (CRM), enterprise resource planning (ERP)) and payment systems) must always be in sync with each other. There’s no reason to build an e-commerce platform that isn’t seamlessly integrated with the delivery service at the back end. It is the most fundamental part of the digital transformation process, which is also a common source of difficulties for businesses. While digital is not necessarily Information Technology, IT is the backbone of all digital execution.

Mistake 4: Digital Transformation is the same as Digitization

This is perhaps the biggest myth that needs to be explained in detail. Both Digitization and Digital Transformation are important, but they are not the same thing.


Digitization is doing what makes a process better, faster, cheaper using digital tools and technologies. Essentially, digitization is about efficiency and cost savings, inside and out. There is an urgent need for smooth operation, predictability, and making data accessible and reliable. Digitization is an important condition for scaling and increasing operational efficiency, but it has not yet turned a business into a digital one.


To become a digital business, leaders need to implement Digital Enterprise Transformation. Digital transformation is a customer-centric value proposition, which is how technology and digital can enhance an organization’s resources and assets to create value for customers. Digital services are specific solutions that provide digital value to the company. The key benefits of digital transformation are revenue growth, profit margins, customer loyalty and the ability to attract top talent (which is the premise of sustainable development). In terms of business model, customer experience, people, culture, talent and targeted delivery will create customer value.


Take the example of a taxi service in India – Meru. Digitization will make it run faster, cheaper, more efficient. However, digital transformation will help Meru move to a different business model like Uber or Ola – A completely different customer value proposition.

Mistake 5: Digital transformation can happen quickly

Digital transformation will be a long and difficult journey, with ups and downs, doubts and disruptions along the way. The required quality of a leader on the digital transformation journey is not excellence, intelligence, decisiveness or errorlessness, but it is unceasing patience. The world famous artist Michelangelo once said: “Genius is eternal patience”.


One of the companies that has “eternal patience” and has paid off is Burberry. They have undergone an unprecedented digital transformation, for the first time in the “luxury” industry, they have become an end-to-end digital company and increased brand value for customers. young customers in the US, Europe and China. Burberry got it right, and there were some mistakes, but the bottom line is that they’ve been doing the digital transformation for nine years. Most importantly, Burberry’s CEO and Creative Director Angela Arhendt and Christopher Bailey have stuck together throughout the process.


Digital transformation is already happening all around us. If your business is still not prepared for a major disruption or a complete change (like the effects of the covid-19 pandemic), today is the best time to go digital. But before diving into the wheel of digital transformation, understand the common myths above to make wise decisions. And above all, when businesses need the right digital transformation direction from experienced experts, Tech Town is ready to help you.


Tech Town is a technology company from Vietnam, with representative offices in the United States, Japan, Canada, the Netherlands,… As a reputable digital transformation consultant, specializing in implementing projects develop custom software with the application of the most modern technology techniques such as AI, Machine Learning, Blockchain… For more than 4 years of operation, Tech Town has become a trusted digital transformation consulting partner. by startups and enterprises from many countries around the world such as the US, Canada, the Netherlands, Japan, the UK and other developed countries.


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