Creative agency glossaryDigital Marketing and Strategy

Digital Transformation

Digital transformation is the rebuilding of how a business operates, serves its customers and makes decisions around digital tools and data, rather than bolting software onto old habits.

What is digital transformation?

Digital transformation is what happens when a business stops using technology to do the old thing faster and starts using it to do a different thing. A retailer that puts its catalog online has digitized. A retailer that redesigns its stores, inventory, service and marketing around the fact that most customers now meet it on a phone has transformed. The difference is whether the organization changed or only its tools did.

The phrase gets used for everything from a new CRM to a cloud migration, which is why it sounds like consultancy. Underneath, it describes something real: the customer's expectations moved online, and the businesses that have not followed them are running on a model the customer has already left.

Why it matters

Why digital transformation matters

Because the customer has already transformed. They expect to find you by search, judge you by your site and your feed, buy in two taps and get an answer the same day, and they do not grade on a curve for heritage. A brand whose back end cannot keep that promise is making the front end lie. For a marketing team the stakes are direct: a brilliant campaign that lands on a slow site, a checkout that fails on mobile or a service desk that takes a week has spent its budget creating a bad first impression.

It also changes what a brand can know. A business running on connected data can see which campaign produced which sale, which customers are drifting and which product is about to run out. One running on spreadsheets and instinct is guessing, confidently.

In practice

How digital transformation works in practice

  1. 01

    It starts with the customer journey, not the software catalog. Map how people actually find, buy from and return to the business, find the moments where the experience breaks, and work backward to the systems and habits that cause the breaks. The priorities fall out of that map: usually the site, the data that connects marketing to sales, and the tools the team uses to make and ship work.

  2. 02

    Then it is delivered in pieces, each of which has to work on its own. A new e-commerce platform, a shared data layer, a content pipeline that can produce a campaign in a week instead of a quarter. The hard part is never the technology; it is the people who have to change how they work, which is why transformation that is announced from the top and built without the teams who will live in it tends to produce expensive software nobody opens.

At RIOT

Digital transformation at RIOT

We have done our own. Krova, our production software, exists because the way we ran shoots, bids and deliveries needed a tool that did not exist, so we built it. AltSounds, our music video channel, and Muvvoo, our music video database, came from the same instinct: when the process is the product, you make the product. It is why we can talk to brands about transformation from the inside of one.

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Watch out

What people get wrong about digital transformation

Buying it. A platform is not a transformation; it is the beginning of one, and the invoice is the easy part. The other mistake is scoping it as an IT project. The teams that touch the customer, marketing, sales, service and creative, are the ones whose work changes, and if they are not shaping it they will route around it.

Questions

People also ask

What are examples of digital transformation?

A retailer rebuilding its stores and stock around online ordering, a brand connecting its ad platforms to its sales data so it can see what actually sells, a studio replacing email and spreadsheets with a production system, or a service business moving its customer support into a channel people use. The common thread is a changed process, not just a new tool.

How is digital transformation different from digitization?

Digitization turns an existing thing digital: paper forms into web forms, a catalog into a site. Transformation changes how the business works because the digital version makes new things possible. You can digitize without transforming; most companies have.

Where should a brand start with digital transformation?

With the customer journey. Find where the experience breaks between discovering the brand and buying from it again, and fix the systems behind the worst break first. That usually means the site, the data and the tools the team uses to ship work, in that order.

Next to it in the glossary

  1. Digital Marketing KPIsDigital marketing KPIs are the handful of numbers a brand agrees to judge its online marketing by, chosen so that each one connects a channel's activity to a business result.
  2. Digital OutreachDigital outreach is the practice of reaching people directly through online channels, from email and social media to creator partnerships and press, to build relationships and spread a brand's message.
  3. Digital PRDigital PR is public relations aimed at online publications, creators and search engines, earning coverage and links that build a brand's reputation and its visibility at the same time.
  4. Display AdvertisingDisplay advertising is paid visual advertising, in the form of banners, images, animations and video units, placed on websites and apps and targeted by audience and context.
  5. E-commerce MarketingE-commerce marketing is the set of tactics that bring shoppers to an online store, turn them into buyers and bring them back, from paid and organic traffic to product content, email and retention.
  6. Earned Media TacticsEarned media tactics are the ways a brand gets covered, shared and talked about without paying for the placement.

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RIOT is a creative agency and production studio in New York. Strategy, brand, film, photography, design and the campaigns that carry them, made by one team. A few lines is enough to start: we read every brief the same day.

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