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The Digital Transformation: A Strategic Shift in How Organizations Evolve

We live in an era where digital technology is deeply embedded in all aspects of life. Digital, however, is not confined solely to IT. It encompasses a wide range of technologies that are now inseparable from daily business operations. Just 15 years ago, technology and management were largely distinct domains within organizations, but the landscape has dramatically changed. Digital transformation has moved from being a buzzword in management circles to a fundamental reality of modern business. Today, companies and individuals are immersed in technology, and it is no longer just a tool – it is the foundation upon which companies must build their strategies and business models.

This change is already happening, according to digital transformation expert Aldis Greitāns. Although the phrase “digital transformation” is frequently used, it’s important to understand that it refers to a comprehensive improvement of an organization’s operations rather than only the adoption of new technology. The shift involves reimagining the entire company to match with a digitally driven approach, rather than only adding technology as an afterthought. Businesses need to adjust to this new environment by integrating digital technologies into every aspect of their operations.

In today’s world, technology cannot remain the exclusive domain of the Chief Information Officer (CIO) or the IT department. Instead, every employee must be digitally literate. Greitāns suggests that digital and technological skills should be expected across the entire organization. The days of technology being confined to support functions are over – today, digital capabilities must be embedded into the very factory of company culture.

Additionally, businesses need to reconsider their plans from a digital perspective. A company runs the risk of falling behind if its strategy is not based on the reality of modern technology. The ability of a company to incorporate technology into its strategic vision will determine how successful it is in the future. In order to plan for both the present and the future technological developments that will influence it, businesses need to be flexible and able to adjust to new technologies.

Businesses must comprehend how technology may support their objectives, and staff members must be prepared to use these resources creatively. The requirement for digital fluency at all levels is one of the most crucial elements of digital transformation. Programming and other technical talents, according to Greitāns, will no longer be seen as specialist capabilities that a few people possess. Rather, these abilities will become standard capabilities for every worker. Organizations will no longer have to depend only on IT teams for leading technical transformation as digital technologies continue to advance. Instead, workers in every department will help the business grow digitally, from daily operations to innovation.

In the near future, companies will no longer need to consider technology as a separate entity when formulating strategies or business models – it will simply be understood as a natural, integral component of the organizational environment. In this new reality, managers will need to focus on how best to harness the digital skills already available within their teams and consider these competencies when planning for the future.

To be ready for the shift, find out more from the MERIT project experts in our YouTube channel or become a student of the new master’s study program Management of Smart, Resilient, and Interconnected Systems at Riga Technical University.