For the past several years, digital transformation has been a constant topic of focus in the business community. Much has been written about the risks of digital disruption and the need for digital transformation in the world of digital platforms. But what does digital transformation really mean—and why do so many companies fail to achieve their goals? One of the main problems is that there are actually two types of digital transformation: linear and exponential. Most companies want the results of the exponential transformation, but focus instead on the linear transformation, which is easier to understand and implement.

So what differentiates linear and exponential transformation? Put simply, linear transformation is transformation within the business that improves operations. Exponential transformation transforms the business itself—potentially changing the core business model of the organization.


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