What term refers to the fundamental change in how an organization operates through the integration of digital technology?

The term that best describes the fundamental change in how an organization operates through the integration of digital technology is digital transformation. This concept encapsulates more than just the adoption of new technologies; it involves a holistic rethinking of business processes, corporate culture, and customer engagement strategies driven by technology advancements. Digital transformation fundamentally alters the way organizations function and deliver value to their customers.

The focus of digital transformation is on driving operational efficiencies and improving service delivery by leveraging digital tools. This can include automating processes, utilizing data analytics for better decision-making, and fostering a more agile and responsive business environment that meets modern customer expectations. The transformative aspect emphasizes systemic and cultural shifts rather than mere upgrades or temporary changes.

In contrast, the other terms refer to narrower concepts. Digital innovation refers to the creation of new or improved products, services, or processes that leverage digital technology but does not necessarily encompass a broader organizational change. Data management focuses specifically on how data is collected, stored, and analyzed rather than on the overall integration of technology into operations. Technology adoption pertains to the process of integrating new technology into an organization, but it does not imply the extensive reorganization and cultural change required for true transformation.