Digital Transformation Platform - Kissflow

What Is Digital Transformation? How It Works in 2025 - New Pillar

Written by Team Kissflow | Jul 25, 2025 11:49:42 AM

What is digital transformation?

Digital transformation refers to integrating digital technologies into every function of a business to enhance how it operates, delivers value, and competes. It’s not only about adopting new tools but also about reshaping business strategies, structures, and customer experiences. This shift enables businesses to optimize operations, respond faster to change, and drive sustained growth. 

It could involve anything from moving your data storage to the cloud to implementing automation technologies or using data analytics for informed decision-making.

Enterprise digital transformation refers to the integration of digital technology into all areas of a business, fundamentally altering how the organization operates and delivers value to customers. This transformation involves adopting innovative tools, processes, and strategies to enhance efficiency, drive innovation, and improve customer satisfaction.

Digital transformation for businesses involves integrating digital technologies to streamline operations, enhance customer experiences, and drive innovation. It enables companies to stay competitive, adapt to market changes, and achieve long-term growth.

A digital transformation leader is an individual who authorizes and manages digital change initiatives. This role demands strategic vision, technical knowledge, and strong leadership. Leaders are crucial in navigating the complexities of digital transformation.

Remember, digital transformation isn't just about technology. It's about reshaping businesses to be agile, innovative, and customer-centric.

 


Think of digital transformation not as a single sprint but as a marathon with multiple laps. It's a journey spanning weeks, months, even years, and it can feel like trying to navigate a labyrinth in the dark. For CIOs and business leaders, grasping the essence of digital transformation, its potential benefits, and its impact is crucial before embarking on this transformative voyage.

Examples of Digital Transformation across industries and departments.

Industry / Department  Example Usecases
Manufacturing  Inventory Management, Warehouse Management, 

Supplier portal management

Banking, Finance, and Insurance  Insurance Claims, Fraud Analysis, Investigation, Loan services
Healthcare Medical care management, Lab Management, Patient lifecycle management
Oil & Gas Approvals processes for property and leasing, Digital e-permit, Environmental approvals
HR Employee Onboarding, Leave Management, Appraisal process
Logistics & Supply Chain Fleet management, Regulatory compliance, Vehicle recall process

 

Check out the 9+ Examples of Digital Transformation for every business usecases in detail.But before taking digital initiatives, understand what is possible with digital transformation. It includes recognizing the capabilities of your technology, team, leadership, budget, and customers.

Why does digital transformation matter?

What is digital transformation process?

The digital transformation process is leveraging technology to fundamentally improve business operations, enhance customer experiences, and achieve greater efficiency. It is about integrating new tools, managing workflows, and creating a culture that fosters innovation.

Digital transformation typically progresses through three stages: digitization, where businesses convert manual processes into digital formats; digitalization, which focuses on optimizing existing workflows with technology; and digital transformation, involving a complete overhaul of how a business operates to achieve strategic goals. Key areas include enhancing customer experiences, automating processes, improving data-driven decision-making, and fostering cross-departmental collaboration​​​.

Digital transformation matters more than ever in today's fast-paced, tech-driven world. Here's why

Companies that have higher digital maturity reported 45 percent [2] higher revenue growth compared to 15 percent for lower maturity companies. According to SAP Center for Business Insights and Oxford Economics, 80 [3] percent of firms that can complete their digital transformation have increased company profits, and 85 percent reported an increase in their market share.

What drives digital transformation? and who?

Digital transformation has several use cases, but certain factors and stakeholders are critical in driving digital transformation. It consists of internal and external factors, including improving efficiency, reducing costs, staying competitive, meeting customer expectations, and driving growth and innovation.

 

The stakeholders who drive digital transformation

Why do digital transformation initiatives fail?

What does a successful digital transformation framework look like?

A digital transformation framework provides a clear roadmap for the organization, helping to define the goals and objectives of the digital transformation effort and how they align with the overall business strategy.

Building a framework is important because


 

Effective strategies for successful digital transformation

Digital transformation strategies can vary widely, depending on an organization's specific goals, industry, and current digital maturity. However, here are some common strategies that many successful digital transformations employ:

How do we measure ROI?


 

Digital Transformation trends and market growth for 2024 and beyond

CIOs’ top areas of increased spending in 2023 [5] include cyber and information security (66 percent), business intelligence/data analytics (55 percent), and cloud platforms (50 percent). However, just 32 percents are increasing investment in artificial intelligence (AI) and 24 percent in hyper-automation.

Twenty-nine percent of CEOs and executives reported a positive impact on growth when they pushed through with digital transformation, while 41 percent noted that their sales and marketing campaigns were positively affected by the change.

Digital transformation drives growth and revenue. From 2020 to 2023, the projected GDP contribution will be 65 percent [6] or around $ 6.8 trillion from direct digital transformation investments.

To overcome the barriers of digital transformation, organizations must implement platforms and technologies that allow them to gather, process, and utilize data effectively and facilitate communication and collaboration with employees and customers. Look for an all-in-one platform that offers you a lot of benefits at the same cost.

The different types of digital transformation and how they’re shaping modern businesses

Digital transformation is more than just technology adoption—it’s a strategic shift that redefines how businesses operate, interact with customers, and drive growth. There are four key types of digital transformation, each playing a crucial role in modernizing enterprises.

How digital transformation is shaping modern businesses

 

 By understanding and leveraging these different types of digital transformation, businesses can future-proof their operations, drive efficiency, and unlock new growth opportunities.

How to choose the right digital transformation platform?

Organizations can ensure that the digital transformation platform or the tools they choose to drive digital transformation successfully have these factors:

How can Kissflow accelerate your digital transformation journey?

Digital transformation is a powerful shift necessary for businesses these days. Despite the challenges and birth pains, it is something that cannot be missed in today’s highly technological and virtual world. Those who can navigate this transformation successfully experience significant growth and are well-positioned to thrive in the years to come.

A comprehensive low-code, no-code work platform like Kissflow not only aids in streamlining digital transformation efforts but improves crucial aspects of work that drive efficiency and productivity.

Kissflow bridges the gap between business and IT teams, putting core functions in the driving seat.

Digital Transformation FAQs

1. What is the meaning of Digital Transformation?

Digital transformation refers to adopting new digital technologies and processes to fundamentally change how an organization operates and delivers value to its customers. It involves integrating digital technology into all areas of a business, resulting in fundamental changes to how the business operates and delivers value to its customers.

2. What are the types of digital transformation?

  • Process Transformation: This involves integrating technologies to reinvent company processes, aiming to boost productivity, improve customer experience, and lower costs.
  • Business Model Transformation: This involves changing traditional business models to stay ahead in the industry. Examples include Netflix's video content distribution and Uber's impact on the taxi industry.
  • Domain Transformation: This involves using technology to transform products and services, even creating non-traditional competitors. An example is Amazon's expansion into cloud computing with AWS.
  • Cultural Transformation: This involves redefining organizational mindsets, skills, and processes to adapt to a highly agile workflow. An example is Experian's shift from equipment focus to data analytics.

3. What’s the difference between digital transformation and business transformation?

Not every business transformation is digital transformation, but every digital transformation is a part of business transformation. Let's look at the key difference between them.

Digital Transformation

Purpose: To fundamentally change how a company operates by leveraging digital capabilities.

Objective: To enhance the company's digital capabilities to achieve its business objectives, address problems, and capitalize on opportunities.

Example: Implementing automation or artificial intelligence to streamline business processes and increase efficiency.

Business Transformation

Purpose: To Make significant changes to an organization's business model to improve its performance, competitiveness, and agility.

Objective: To overhaul the company by implementing a new business model. This process often involves significant changes to the company's products, values, and overall identity.

Example: Introducing a new business model, such as switching from a traditional brick-and-mortar retail model to an online model or introducing a subscription-based model.

4. What’s the difference between digitization, digitalization, and digital transformation?

There is a major misconception that digitization, digitalization, and digital transformation mean the same. But that’s not true. Digitization and digitalization are the first two steps leading to digital transformation.

Digitization refers to converting information, such as text, images, and audio, into a digital format that can be stored, processed, and transmitted electronically. This involves using computers, scanners, and other equipment to capture and convert analog data into a digital form that can be easily stored, shared, and manipulated.

Digitalization refers to using digital technologies to improve a business or organization's efficiency, effectiveness, and competitiveness. This involves integrating digital tools and processes into various aspects of the organization, such as marketing, sales, customer service, and operations. Digitalization can lead to increased productivity, improved communication and collaboration, and enhanced customer experiences.

Digital transformation is the broader process of fundamentally changing how an organization operates and delivers value to customers by leveraging digital technologies. It involves a wide range of activities, including digitization and digitalization, as well as the adoption of new business models, the redesign of organizational structures and processes, and the upskilling of employees.

5. What are the 4 main areas of digital transformation?

Customer experience, operations, products and services, and business model. Learn More here

6. What are the 5 domains of digital transformation?

Customer Experience, operations, products and services, business model, culture, and leadership.

7. What are the 3 main components of digital transformation?

People, processes, and technology

8. What are the 6 core elements of digital transformation?

Strategy, culture, processes, data, technology, and governance. Learn More

9. What are the six stages of digital transformation?

    1. Discovery

    2. Planning

    3. Implementation

    4. Adoption

    5. Optimization

    6. Expansion

10. Why do digital transformations fail?

    1. Lack of leadership support,

    2. Lack of a clear vision and strategy

    3. Insufficient resources

    4. Resistance to change

    5. Complexity

11. How long will my digital transformation take?

The duration of a digital transformation initiative can vary significantly depending on several factors, including the scope of the project, the complexity of the technologies involved, and the resources available. Some projects may be completed in a matter of weeks or months, while others may take several years to implement fully.

12. What are the most important keys to digital transformation success?

    1. Leadership support

    2. Clear goals and objectives

    3. Agile mindset

    4. Investment in technology

    5. Collaboration and communication

    6. Employee buy-in and engagement

    7. Continuous learning and development