Digital adoption vs. digital shift – are these two terms different? And if so, why does that difference matter?
In today’s business world, terms and concepts related to digital technology have proliferated.
However, not all terms are created equal. Some are used more frequently, some have established meanings, and others are used rarely, if at all.
Below, we’ll explore the meaning of each term, how they are used in the business world, and whether one is better than the other.
Digital Adoption vs. Digital Shift vs. Digital Transformation
Here are the basic differences between these two terms:
Digital adoption refers to the state where users are leveraging technology to its fullest extent and using it for its intended purpose. In a business context, this matters because user productivity and software ROI depend directly on how well users can adopt a product.
Digital shift, like digital transformation, implies a change. The term “shift” has connotations related to mental, attitudinal, or cultural shifts. It may, therefore, be more useful when discussing the cultural implications of digital changes in an organization.
There is also another important term that we should not omit, which is digital transformation.
Digital transformation is the most widely used term of the three. It refers to the use of digital technology to improve or make radical changes to a business. This term has become very popular in recent years, and although its meaning may differ slightly from source to source, it is a crucial concept to understand.
Of the three, digital shift is the least clearly defined, which means that it will be the least useful in a business context.
How to Make the Shift to Digital-First Business Models
In today’s era, every business must adopt digital tools, mindsets, and business models.
Since we are still in the midst of the digital revolution, however, there can be confusion around exactly how to do that.
Even digital transformation, the most commonly used term of the three covered above, has a somewhat ambiguous meaning.
However, there are core ideas, processes, and strategies that most in the business community can agree upon.
When making the shift to digital, there are a few key areas that must be transformed.
A few of the most common include:
Digital Tools and Technology
Every company must adopt new technology and tools in order to stay competitive in today’s business world.
This is easier said than done, however, since the adoption of new tools also requires:
- New workflows and business processes
- New employee skills
- Shifts in attitudes and mindsets
- Changes to business models, operations, and strategy
In fact, many have suggested that digital transformation is more about people than it is about technology.
While this is true to an extent, the bottom line is that technology is the core driver of digital disruption, innovation, and change – without first implementing new tools, it is impossible to make changes to mindsets, culture, or attitudes.
Digital Strategy and Business Strategy
Technology-driven innovation has become the launchpad for many of today’s most successful businesses.
The list of technology-driven businesses is very long, and includes the likes of Apple, Netflix, Amazon, and Google, among many others.
Digital technology, in other words, is a competitive differentiator in the modern business environment.
Companies that want to stay competitive, or even become leaders in their industries, must incorporate digital technology into their core business strategies.
This does not mean that every company must become a technology company.
It does, however, mean that every company should be able to adopt and leverage technology to its fullest extent.
Business Operations and Processes
Business performance has always been a top concern for every business.
Organizational effectiveness, after all, directly affects top- and bottom-line returns, as well as an organization’s ability to compete in the marketplace.
Correctly applied, digital technology can drive massive performance improvements.
Data and analytics, for instance, can offer deep insights wherever they are applied. Those insights can then be used to make better decisions, improve efficiency, avoid errors, and much more.
Using technology to improve business processes is not only advantageous in the modern era, it is often necessary. After all, when the majority of companies invest in technology, those that don’t will be at a severe competitive disadvantage.
The Customer Experience
Many business professionals focus heavily on the customer experience when investing in digital transformation.
Some even suggest that customers themselves are the main drivers of digital transformation.
After all, customers are the lifeblood of every business and their needs often dictate business strategy and the direction of digital initiatives.
Even initiatives aimed at improving other areas of the business, such as efficiency and performance improvements, ultimately aim to provide more value to the customer.
The Workplace and the Workforce
Employees power the digital workplace, which, in turn, powers the modern business.
Most digital initiatives ultimately involve some change to the workplace, since employees are the ones who make use of a company’s technology.
Digital changes to the workplace can include employee training programs, changes to workflows, the implementation of new software, and much more.
All of these, of course, are designed to support the other types of initiatives covered above, such as improvements to the customer experience, business processes, or organizational strategy.