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CMA Intermediate · Operations Management and Strategic Management · Digital Strategy

A traditional Indian retail chain moves its entire business model online, redesigns processes around customer data, and changes its culture to experiment quickly. This is best called:

This is digital transformation, because the firm is fundamentally changing its business model, processes and culture using digital technology and data. Digitisation merely converts paper records into digital form, and process digitalisation is narrower in scope than changing the whole organisation.

  1. ADigitisation
  2. BDigital transformationCorrect
  3. CDigitalisation of a single process
  4. DOutsourcing

Explanation

Digital transformation is a fundamental rethinking of business model, processes and culture using digital technology. Digitisation only converts analogue information into digital form, and digitalisation of a single process is narrower than reshaping the whole business.

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