The only logical conclusion to the path of successful digital transformation should be an “eternal” dominant position in the market due to applied innovations. This will be the digital transformation of Step 5.

Accurately defining digital transformation helps cut off the annoying ads of technology vendors and consultants who are trying to shove their offerings out as genuine "digital transformation." The five-step transformation model makes it easy to distinguish between growth stages and final stages.

Stage 1 - "Foundation"
This is the stage during which enterprises actively automate internal processes (such as sales, manufacturing, or finance) using software such as SAP, Oracle, Salesforce, or similar platforms. This process is more automation than transformation, but it provides the digital foundation needed for future transformation. Process automation using digital platforms is essential to transform manual labor into data.

Stage 2 - "Isolation"
During this stage, individual services (functional departments) or divisions begin to use disruptive technologies to create new business models.

For example, a manufacturing division is making strides in using the Internet of Things, which leads to significant changes in manufacturing or in the management of the enterprise's logistics.

The bottom line is that such efforts remain isolated within the framework of one service or department, and there is no overall strategy that drives the transformation of the company as a whole.

Stage 3 - "Partial Synchronized Transformation"
The owner or CEO of a company realizes the disruptive power of digital transformation and paints a picture of the company's digital future.

With the transition to the third stage, the entire organization begins to row towards a common goal. But the enterprise has not yet fully transitioned to a digital basis or a new business model, and a flexible, innovative culture is not yet firmly established.

A good example is the digital transformation of General Electric, which ultimately stalled at this stage. CEO Jeff Immelt outlined his vision for the digital future of the industry, with the entire corporation moving towards a unified digital strategy. However, the new digital business model never matured - and therefore failed to take deep roots.

Stage 4 - "Perfect Synchronization"
Refers to the point at which a digital platform, or a new business model spread across the entire enterprise, is fully entrenched.

But this is a one-time transformation. This is just one change in technology (or business model), and far from disruptive. The only way to survive the threats posed by the demolition of the old system is to build digital capacity and make a flexible, innovative culture a permanent feature of the entire enterprise.

Step 5 - "Embedded in DNA"
The stage at which the transformation becomes permanent. You manage to consistently maintain a leading position, set the tone for the entire industry, because your company is disciplined enough to relentlessly innovate and set industry trends. You are not just a market leader, you are a disciplined innovator.

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