Whether we’ve been delighted or bruised by the experience, we’re all deeply familiar with the term “digital transformation.” It’s used freely in our world and has become shorthand for progress, ambition and modernization. Yet so many businesses lack a clear understanding of what it truly means or even if they really need it.
Digital change is not a one-size-fits-all concept, and if we make space for nuance, we’ll see it’s actually part of a non-linear spectrum with three distinct components: transformation, acceleration and optimization. Businesses can and should move fluidly across these modes based on changing goals, market dynamics or internal maturity. The problem is that everything gets blindly tagged as “transformation,” which shuts down more tailored conversations before they’ve even begun.
When every ambition is dressed up this way, it becomes challenging to be honest about what kind of change is actually needed, or is even possible. Some organizations absolutely need to overhaul entire systems and ways of operating (transformation). But others should leverage existing and new infrastructure to continuously and rapidly evolve experiences for customers (acceleration). Others need to fine-tune what they’ve already built to drive incremental benefits (optimization).
Each of these goals is valid, but they require different approaches, investments and mindsets. Treating them as the same does no one any favors. And to complicate matters, both “accelerating” and “optimizing” digital operations might produce results that end up being “transformative” — you just won’t know without making space to understand the uniqueness of the three different elements.
This might be easily dubbed a crisis of definitions, but it’s much more than semantic. It’s shaping strategy, influencing procurement decisions and putting enormous pressure on teams to deliver against goals that may never have been clearly articulated. Worse still, it leads to a pattern where businesses invest heavily in technology, often brilliant, often expensive, without understanding how it will create meaningful value for customers or growth for the company. The result is usually underwhelming returns, frustrated leadership and a growing sense that real transformation is always just out of reach.
When I suggested that a digital transformation project might have bruised some readers, this is what I meant — and in my experience, it’s worryingly common.
If we want to change that, we need to reframe the conversation. Not every business needs to transform in the way we think, and even those that do don’t need to do it all at once. What they do need is a clear view of where they are, where they’re trying to go and what kind of change is most appropriate in that moment. Only then can technology be used with precision and intent.
How to rethink the approach
Part of the problem lies in how these initiatives begin. Too many strategies start too far downstream, with a focus on platforms, licensing and delivery partners, rather than with the customer or the business problem.
In some cases, a contract has already been signed before the organization has fully defined what it wants to achieve. It’s a high-stakes game of retrofitting, often driven by a tech-first mindset that assumes implementation is the hard part. In reality, that is knowing what to build, why you’re creating it and how you’ll measure whether it’s worked.
Even when the ambition is clear, transformation is vulnerable to disruption. Leadership changes, budget shifts and unexpected external pressures can derail the most carefully planned strategies. Meanwhile, the teams responsible for delivery are often overburdened with short-term tasks, leaving little room for creative, longer-term thinking essential for these projects.
That’s where more businesses are beginning to rethink their approach. “Acceleration” and “optimization” may not carry the same weight as “transformation,” but they can deliver meaningful, measurable progress. In fact, focusing on more minor, faster changes — if they’re the right ones — can create the space and momentum to tackle larger, more complex shifts eventually.
Crucially, this kind of incremental change isn’t about doing less. It’s about doing the right things in the correct order. A strong prioritization framework, built around both business and customer value, is essential. It helps teams move with confidence, even in uncertainty. It also supports accountability, not just for what’s built, but for how it performs.
But what’s really needed now is a shift in language to allow for greater nuance and an expanded perspective. Digital transformation is no longer the destination. The real goal is experience transformation — changing how customers interact with your business, and how you show up for them when it matters most. That might involve a full-scale rebuild. But more often, it means being deliberate, focused and flexible, with an eye always on what’s valuable to the people you serve. Considered under those terms, you’ll find it’s not always necessary to invest in a full-scale digital transformation actually to be transformative.
Opinions expressed by SmartBrief contributors are their own.
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