Marketing Director
Zoe-Louise Bell
"Digital Transformation" is one of the most overused phrases in the business world. It’s held up as the key to survival and growth, a magical process that will future-proof your company. But what does it actually mean?
If you feel a little unsure, you're in good company.
Our independent research report, The State of IT for NZ’s SMEs, surveyed over 300 IT decision-makers and found that behind the confident facade, many leaders are quietly confused.
13% of respondents admitted they were "not sure" what digital transformation is.
A further 59% said they only "know a little bit" about it.
That means for nearly three-quarters of NZ SME leaders, one of the most important strategic concepts in modern business is still shrouded in fog. This confusion was most prevalent among non-technical leaders like CEOs and founders—the very people often tasked with setting the company's direction.
Let's cut through the jargon. As our report defines it, "digital transformation is about using technology to make processes, services, and products more efficient."
That’s it. It’s not about buying AI or moving everything to the blockchain. It’s about looking at a frustrating, time-consuming, or inefficient part of your business—whether it's how you talk to customers, how your team collaborates on a project, or how you manage your inventory—and asking: "Can technology make this better?"
Sometimes the answer is a new app. But as our report argues, "Real transformation means making changes to an organisation, reimagining, reskilling, and experimenting. For the most part, it’s not actually about the technology but instead the people."
The danger of the buzzword is that it can lead to paralysis. If you don't understand the goal, it's impossible to start the journey. The data shows that the businesses struggling most with their transformation efforts were also the ones where the leaders were most likely to be unsure of the term.
The first step to success is clarity. Forget the hype and focus on a simple, tangible problem you want to solve. That is the true starting point of any successful transformation.
To get more clear, actionable advice and see the data on how NZ SMEs are navigating their own transformation journeys, download the complete report: The State of IT: New Zealand’s Small and Medium-Sized Business Edition