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The Contemporary Marketing Management Glossary

Digital Transformation

Short Definition

The strategic integration of digital technologies into all areas of an organization, fundamentally changing how it operates, creates value, and engages with stakeholders.

Context

Digital Transformation (DT) emerged as a key concept in management and innovation theory during the 2010s, influenced by the diffusion of cloud computing, social media, mobile technologies, and big data analytics. Scholars such as Erik Brynjolfsson, Andrew McAfee, and George Westerman (MIT Sloan School) framed DT as a socio-technical revolution—one that redefines leadership, culture, and value creation. It connects closely to theories of dynamic capabilities (Teece, 2007) and organizational agility, marking a shift from digitization (technology adoption) to transformation (strategic renewal).

Extended Definition

Digital Transformation refers to the continuous process through which organizations leverage digital tools and data to redesign business models, enhance customer experiences, and improve efficiency. It extends beyond technology implementation to include cultural and structural change—requiring new mindsets, leadership models, and competencies.

A successful DT initiative aligns technology with purpose, people, and processes, fostering innovation while ensuring ethical and sustainable use of digital resources.

In marketing and management, DT enables real-time data access, personalization, remote collaboration, and new forms of stakeholder engagement. It serves as the foundation for concepts like Data-Driven Decision Making, Artificial Intelligence adoption, and Digital Leadership.

Contemporary Example

Companies such as Siemens, Unilever, and Salesforce use digital transformation to integrate AI-driven analytics, automate supply chains, and co-create value with customers through digital platforms. In the public sector, DT enhances transparency and citizen participation through open data and e-government solutions.

See also

Part of chapter: Glossary