March 2017 — Prepared by Zeus Kerravala

ZK Research defines digital transformation as the application of new technologies to create new business processes by leveraging the convergence of people, business and connected things. Digital innovation involves companies creating new products and services as well as transforming business operations, enabling organization to generate more revenue, lower costs and achieve unprecedented levels of efficiency to gain a sustainable competitive advantage in their markets.

Historically, maintaining a competitive lead was based on having the best products, the lowest prices or the smartest people. However, in the digital era, this is no longer the case. Today, market leadership is based on an organization’s ability to recognize shifts in the business landscape and adapt faster than the competition. Businesses that can adapt and respond to new market dynamics will lead their industries; those that cannot will struggle to survive, and many will disappear completely.

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