Chapter 4

Process of transformation
 Digital Transformation
• Digital transformation is the process of using digital
technologies to create new — or modify existing — business
processes, culture, and customer experiences to meet
changing business and market requirements. 
• This reimagining of business in the digital age is digital
transformation.
• It transcends traditional roles like sales, marketing, and
customer service. Instead, digital transformation begins and
ends with how you think about, and engage with, customers.
•  As we move from paper to spreadsheets to smart
applications for managing our business, we have the chance
to re-imagine how we do business — how we engage our
customers — with digital technology on our side.
What’s the difference
between digitization,
digitalization, and
digital
transformation?
Digitization is the move from analog to digital.

• Not so long ago, businesses kept records on paper.

Whether handwritten in ledgers or typed into
documents, business data was analog. If you wanted
to gather or share information, you dealt with
physical documents — papers and binders, xeroxes,
and faxes.
• Then computers went mainstream, and most
businesses started converting all of those ink-on-
paper records to digital computer files. This is called
digitization: the process of converting information
from analog to digital.
 Digitalization is using digital data to simplify how you work.

• The process of using digitized information to make

established ways of working simpler and more
efficient is called digitalization.
• Note the word established in that definition:
Digitalization isn’t about changing how you do
business, or creating new types of businesses.
• It’s about keeping on keeping on, but faster and
better now that your data is instantly accessible
and not trapped in a file cabinet somewhere in a
dusty archive.
 Digital transformation adds value to every customer interaction.

• Digital transformation is changing the way business

gets done and, in some cases, creating entirely new
classes of businesses.
• With digital transformation, companies are taking a
step back and revisiting everything they do, from
internal systems to customer interactions both online
and in person.
• They’re asking big questions like “Can we change our
processes in a way that will enable better decision-
making, game-changing efficiencies, or a better
customer experience with more personalization?”
 Process of Transformation
• Modernization
• Globalization
• Migration
• E-governance
• E-commerce
 Modernization
• Modernization, in social science, refers to the transition from a
traditional, rural, agrarian society to a secular, urban, industrial
society.
• Modernization encompasses profound economic, social,
political, and cultural changes, but the process of
industrialization is at its core.
• The modernization syndrome includes urbanization, the
application of science and technology, rapidly increasing
occupational specialization, rising bureaucratization, and rising
educational levels.
• However, the motivating force behind the process is the fact that
industrialization is a way to escape the poverty and helplessness
of subsistence agriculture. Industrialization makes it possible to
enormously increase a society's wealth.
 Globalization 
• Globalization is the word used to describe the
growing interdependence of the world’s
economies, cultures, and populations, brought
about by cross-border trade in goods and services,
technology, and flows of investment, people, and
information.
• Countries have built economic partnerships to
facilitate these movements over many centuries. 
 Migration
• Migration is a way to move from one place to another in order to
live and work.
• Movement of people from their home to another city, state or
country for a job, shelter or some other reasons is called migration.
• In the twenty first century, international migration touches the lives
of more people than ever before. With more than 160 million
people estimated to be living outside their country of birth, almost
no country is untouched by international migration or is immune to
its effects.
• With poverty, political repression, human rights abuses, and conflict
pushing into more and more people out of their home countries.
• while economic opportunities, political freedom, physical safety,
and security pull both highly skilled and unskilled workers into new
lands, it is believed that the pace of international migration is
unlikely to slow in future.
 E-governance
• E-Governance is the implementation of ICT. The ICT stands for Information
and Communication Technology in the government department.
• Likewise, the central E-Governance is to make government services efficient,
accessible and convenient.
• The use of E-governance is to overcome the boundaries. That is of a
traditional paper-based system.
• It is the enhancement of current government. And it also helps to provide
better government services to the citizen.
• Hence, E-governance delivers SMART government.
– S- Simple
– M-Moral
– A-Accessible
– RT-Responsive Government
• The E-Governance is not only a website on the internet. E-governance is
providing governmental services that are accessible through the internet.
• It refers to any government process or function that is out online in digital
form.
 E-governance

• Similarly, E-governance is the involvement of digital

democracy, online service delivery. Likewise, it is also as
online citizen participation.
• An ordinary citizen gets the government facility
through the internet. E-governance is the network that
includes government, public, and business
organizations.
• E-Governance is of 4 types depending on the specific
types of services.
– Government-to-Citizen(G2C)
– Government-to-business (G2B)
– Government-to-Government (G2G)
– Government-to-Employee (G2E)
 E-commerce

• E-commerce, also known as electronic commerce or

internet commerce, refers to the buying and selling
of goods or services using the internet, and the
transfer of money and data to execute these
transactions.
• E-commerce is often used to refer to the sale of
physical products online, but it can also describe
any kind of commercial transaction that is facilitated
through the internet.
 E-commerce
• E-commerce is a popular term for electronic commerce
or even internet commerce.
• The name is self-explanatory, it is the meeting of buyers
and sellers on the internet.
• This involves the transaction of goods and services, the
transfer of funds and the exchange of data.
• Types of e-commerce Models:
– Business-to-business (B2B) 
– Business-to-consumer (B2C)
– Consumer-to-consumer (C2C)
– Consumer-to-business (C2B)
– Business-to-administration (B2A)
– Consumer-to-administration (C2A)
 Assignment
• Clarify the differences between e-Government & e-
Governance.
• Discuss in brief about M-commerce and F-commerce.
• Case Study:
– E-Governance in Nepal: Progress, Challenges and
Possibilities.