Available @ https://www.linkedin.
com/pulse/enterprise-digital-transformation-sudipta-mukherjee/
Theory of Enterprise Digital Transformation
Sudipta Mukherjee
B.Sc. (Electronics Engg.), PGDM (International Business)
Abstract: ‘Digital’ is the buzz word & widely
spoken in today’s Information Technology world.
Industry professionals have also joined their hands to
share ideas to become ‘Digital’. The objective of this
paper is to present a theory of ‘Digital’ and its
transformation model that can be applied within
Information Technology practice as well as other
Industry practices at Enterprise level. Through this
paper Author would like to share a perspective of
standardized definition, framework for its
transformation and lastly, an example to showcase the
transformation model. This theory can be customized
to create strategic framework based on specific need.
Intended audience of this paper would be Information
Technology professionals; however, real beneficiary
would be industry professionals who actually
implement and consume the ‘Digital’. Author has
attempted to provide coverage of thought process
towards this idea, thus becomes Theory. The
approach discussed in this paper has been applied in
several occasions & found to be useful during
solution consulting engagements.
Introduction: With the invention of
‘Semiconductor Technology, Modern World has
entered into ‘Digital’ [1] era; the era that solely
depends on 0 and 1 theory. However, Author was
searching for an answer of a question, “What is
Digital?” in specific context. Through discussion with
several Individuals and referring to Papers available
in the Internet, it was found that, there is no single
answer to this question. Concept of ‘Digital’ [2] [3]
[4] [5] is either highly perception based or based on
experience in a field of service; thus, not consistent.
However, one thing is clear that, it is actually a form
of ‘Service’. In this context, this paper refers to
‘Digital Services’ through the ’Digital’ keyword and,
it does not refer to ‘Semiconductor Technology’.
In general, any transformation requires two views –
Current State & Future State. The beauty of a
Page 1 of 8
transformation solution lies within the design of
actions that are required while moving from current
state to future state. Thus, this requires clear
definition of each states, measurement mechanisms,
benchmarks and framework of actions.
Author is presenting this theory, the strength of which
is the flexibility of tailoring based on specific need to
maximize the outcome.
What is Digital: Before we discuss about ‘Digital
Services’, let’s touch upon few fundamental
characteristics of services – (1) it is produced &
consumed at the same time; there is no question of
storing like a physical goods; (2) measurement of
quality varies based on large number of parameters
while keeping the definition of quality same
(Conformance to the Standards); (3) considering the
theory of marketing (level of products – Basic /
Generic, Expected, Augmented & Potential) [31], it
can have various forms based on the ingredient
supplied while production.
The ‘Digital Services’ is the form of services that take
care of three things – (1) Integration of People; (2)
Integration of Information; (3) Change Management
Integration of
People
Change Integration of
Management Information
(1) Integration of People refers to developing
customer centric culture by consolidation &
convergence of pieces & number of services
components towards one common goal. Some of
the parameters to be considered – identification
of all stakeholder who are directly or indirectly
 involved in production of services, their
understanding of customers & expectations; and
synchronization & harmonization of actions
towards one single outcome.
(2) Integration of Information refers to
management of data from accessibility & speed
point of view through a level of human touch.
(3) Finally, Change Management refers to
management of actions that are data driven, risk
managed and improving on continuous basis.
So, the definition of ‘Digital Services’ can be derived
as follows …
A Service that showcase Customer Centric Culture,
makes the right information available at right time
through human touch, connected ecosystems,
agility, & accessible from anyplace; and manage the
changes through facts and constraints using a set of
control parameters.
This definition, basically, tries to answer few
questions…
(1) Are we working seamlessly towards one common
goal? Does every stakeholder have sense about
this & committed to it?
(2) How can we remove human interventions /
perception while producing a service, free up
human time for faster innovations and create
intellectual assets for the society?
(3) How can we make right information available at
right time and right place?
(4) How can we act proactively, faster & predictable?
(5) How can we make systematic change that inherits
positive influencers on continuous basis for better
& better outcome?
Digital Metrics: As quoted in previous section, the
perception quality of service varies based on multiple
factors. Quality Assurance make it easy for us to
define & measure this using a set of metrics. These
metrics can be found within the definition of ‘Digital
Services’ and they are summarized below…
(1) Customer Centric Culture refer to level of
understanding of customer expectation,
production of services and integration of all
stakeholders towards common goal. It is a
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connected ecosystem where Customer is the focal
point.
(2) Zero Touch Process refers to level of automation
applied in a value chain and contribution made
towards improving the value chain.
(3) Information Anywhere refers to availability &
processing of data at right place & at right time.
Omni-channel assessment is the key for such
consideration.
(4) Processing Speed refers to collective processing
power of machines & human with high degree of
agility to provide the target services. Process
Cycle Time is one such parameter that may be
considered.
(5) Continuous Transformation refers to managing
changes towards future state through facts
unearthed using mining of data, connected
systems, risk parameters considering constraints
and adopted metrics.
Note that, these metrics also can be looked at as
secondary metrics which can be derived from a set of
primary metrics that an organization may be using.
The key point that needs to be considered while
deriving such relationship is the definition of ‘Digital
Services’ outlined in this paper.
A sample measurement is shown below through
Radar Chart…
Transformation Theory: Before we begin the
discussion of digital transformation [6] [7] [8] [9] [10]
[18], let’s understand two things – what are we trying
to transform and how it happens. The straight answer
to the first question is ‘Throughput of a Business
Function’ whatever may that be and what form it may
have. The second question is bit complicated & does • Allow permissible ‘over-production’ for ‘best-fit
not have single answer. Every single transformation for survival’. Over-production of products (goods
is unique in its own stand and the model is highly or services) may have variations.
depended on perception of stakeholders, ability to • Cultivate positive influencing factors and allow
execute actions and influencing factors beyond negative ones to natural death.
human participants. • Select those positive influencing factors that
allow collective & incremental improvements.
To understand the transformation itself, let’s consider
(So, assessment of ingredients of products and
an example – the classic and remarkable
these influencing factors are extremely essential.)
transformation case study is the evolution of Human
species. Some of the good quotations in this regard... • Allow ideation for evolving new products (goods
or services) from existing resources through
...complex creatures evolve from more simplistic ancestors iterative process.
naturally over time. In a nutshell, as random genetic
mutations occur within an organism's genetic code, the Now, let’s look at first question, ‘what we are trying
beneficial mutations are preserved because they aid survival to transform’. The answer was ‘Throughput of a
-- a process known as "natural selection." These beneficial Business Function’; but which business function? By
mutations are passed on to the next generation. Over time,
beneficial mutations accumulate, and the result is an entirely looking at all kinds of Industry practices today, a set
different organism (not just a variation of the original, but of four logical functional segments [14] [15] [16] [17]
an entirely different creature). [18] can be identified that can group all sorts of
Courtesy: darwins-theory-of-evolution.com
business functions…
Functional Segment Example of Business Functions
• A species is a population of organisms that interbreeds and Research & Discovery, Prototyping, Product
Development Management
has fertile offspring.
(Goods & Services)
• Living organisms have descended with modifications from
Marketing & Sales Market Development, Advertising,
species that lived before them. Post-Sales Support, Billing &
• Natural selection explains how this evolution has Collection, Customer Service -
happened: CRM, Stakeholder Management,
— More organisms are produced than can survive because Channel Management, Brand
of limited resources. Management
— Organisms struggle for the necessities of life; there is Manufacturing, Inventory Management, Production,
competition for resources. Distribution & Sourcing, Disposal Management,
— Individuals within a population vary in their traits; some Delivery Supply Chain Management,
of these traits are heritable -- passed on to offspring. Logistics, Store & Warehouse
— Some variants are better adapted to survive and reproduce Management
under local conditions than others. Enterprise Corporate Strategy, Planning &
— Better-adapted individuals (the "fit enough") are more Management Controls, Finance & Accounting,
HR, Policy & Administration, IT,
likely to survive and reproduce, thereby passing on copies
Quality Engineering, Real Estate
of their genes to the next generation.
Management
— Species whose individuals are best adapted survive;
others become extinct.

Courtesy: pbs.org
With reference to our context, key takeaways from
Charles Darwin’s Theory [11] [12] [13] that can be
considered for rules of transformation are as follows
• Create options to allow ‘Selections’ by key
beneficiaries.
• Follow agile method & concept of creating
‘minimum viable product’ that can sustain.
Now, the next question is, where to focus on in all
these business functions? From a CIO perspective, it
is essential to look into improving top-line & bottom-
line of the business through technology. Although
four functional segments described above contribute
to top-line as well as bottom-line directly or
indirectly; however, a broader level & relative
contribution perspective, they can be classified as
follows. Digital Transformation strategy would be
different in either cases.

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 Revenue Generation Cost Control adapters; (2) another one which creates
Research & Development Manufacturing, Distribution layer on top of Business Applications (ex.
Marketing & Sales & Delivery Robotic Process Automation)
Enterprise Management Information Tools that enable an individual consumes
For a successful digital transformation, thus, now we Anywhere and reacts to relevant information.
MobileFirst strategy is one such example.
need to have four things in place – (1) Selected set of Delivery of information through Omni-
value-chains integrating few business functions, (2) channel electronic medium is the key for
AS-IS state of digital metrics for selected business content delivery. However, enough
attention also should be provided to the
functions, (3) A talent pool to drive the system that creates, process, hold and
transformation, and lastly (4) a set of engineering deliver in the backend, typically invisible to
tools. Discussion on talent pool is out of scope of the information consumer. High Availability
and Disaster Recovery processes & systems
paper. Discussion on engineering tools is covered in
should be integral part of Digital
next section. Transformation.
Processing Tools that help speeding up execution of
Speed information delivery, consumption and
AS-IS State of
feedback. Systems Infrastructure
Digital Metrics Management tools, decentralized on-
demand computing like Cloud are some of
the examples.
Continuous Tools that refers to mining of information
Transformation (Analytics Tools), identify need-based
Selected
Value change, self-healing, human like thinking-
Chains Intelligent Machine, simple design –
Human
Design Thinking [22], hide complexities to
Engineering
Tools
Resource
driving
stakeholders and focus on User Experience,
transformation System Development & Delivery (ex.
Agile, DevOps), Artificial Intelligence
Tools enable to identify most relevant
information to be produced & delivered to
Digital Tools: While talking about tools [19] [20] an individual concerned.
[21] that enable target state of value-chain, the key Power of such tools described above can be further
thing that needs to be considered is, how these tools enhanced considering a hierarchical process library.
are aligned with the digital metrics. The spectrum of
Process Library
these tools is not limited to only software products; Solution Design Methods
rather, they could be process and even best practices Technical Layer
(ex. Engagement Practice, Solution Delivery Methods
Discovery Methods, Design (ex. SDLC Methods)
or hardware. It is important for us to analyze the Thinking)

characteristics of these tools from digital metrics Management Layer

Service Management Method
(ex. ITIL)
Project Management Methods
(ex. PMBOK/Prince2)
perspective. Industy Specific Standards Industrial Standards
Standards Layer (ex. TMForum for Telco, Besel 3 (ex. CMMI/PCMMI, ISO
for Banking) 27000/28000/9000)
Digital Characteristics / functions
Functional Layer Industry Specific Business Processes - BLM, CLM, PLM
Metrics of the target tools
Customer Tools that enables collaboration among
Centric Culture stakeholders either internal or external or Digital Assessment: Let us now understand the
both to the organization, convergence of theory described above through an example. Revenue
actions among stakeholders to a common
goal and Customer Experience
Cycle Management (Provider perspective) in
Management functions including Social healthcare is an good example to consider as it
Media integration. Example-MS directly involve with end consumer i.e. patients, front
SharePoint, IBM Lotus. Connected
devices, IoT are also few examples.
office as well as back office personnel within provider
Applications run on hand-held devices etc. organization and third parties like TPAs or insurance
Zero Touch Automation tools that, speedup throughput providers / payers. The entire process is controlled
Process of Business Processes (BPM tools), through set of laws like HIPAA, SOX etc.
Technically, there are two kinds of
automation – (1) one that creates point to
point connection between two Business
Applications through connectors or

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 Patient On- Documentation
Users. Patient data can be published
Eligibility Check
boarding of Services through mHealth. Clinical data should be
enabled @ desktop or hand-held based on
business demand; but should be audit
Pre- enabled and HIPAA & other appropriate
Bill Preparation
Medical Coding
Authorization & laws compliance. Data Lake can be
& Presentment Co-pay
Collection introduced for analytical processing, AI
and Information On-demand to connected
system. Blockchain technology could be
Claim Denial Payment
good example for data protection,
Submission Management Posting specifically for financial data.
Processing Hybrid Cloud can be considered – Public
Speed cloud for systems primarily in Marketing
& Sales segment including Patient facing
Account
Reporting & Patient Billing & Mobile Apps/ mHealth, Patient Portal etc;
Receivable
Analysis Collection
Management Private Cloud for rest of the segment.
Cloud storage with local caching option
Step-1: Identify digital maturity by linking and using (to avoid high network bandwidth usage)
can be used for storing imaging data with
existing set of business & technology KPIs for faster retrieval.
example, time to collect patient’s demographic data, Continuous Usage of Lean & Design Thinking can be
% digitization @ source, % clean claim, days A/R, # Transformation considered as tools for Customer Journey
Mapping and CX improvement. Two types
of follow-up for payment, patient billing accuracy, of analytical systems are suggested to be
end-to-end process cycle time. deployed – for patient risk scoring, denial
prediction. AI tools are suggested for
Solution Architect should carefully link the existing Medical Coding. Agile & DevOps practice
KPIs to digital metrics; definition of each digital will ensure continuous delivery of
improvement for digitally enabled RCM.
metric provides the theme. Alternatively, a set of
Step-5: Considering today’s marketplace, platform
questions can be framed to derive the digital metrics
options for Digital RCM are plenty. Many specialized
quantitively.
platforms are also available based on the business
Step-2: Identify current value-chain pain-points and need. Cost-benefit & value-chain alignment analysis
translate the same from digital maturity perspective. should be conducted for these platforms.

Step-3: Derive transformation options. RCM Step-6: Prioritize digital transformation options for
example shown here… implementation based on cost-benefit analysis.

Refer transformation options in Table-1 below.
Step-4: Considering Table-1, group the options
aligned with digital metrics and the result is …
Digital Options
Metrics
Customer mHealth, Digitization @ Source – Multi-
Centric Culture channel document collection & OCR/ICR
enabled digitization. Patient Portal would
be another option.
Zero Touch Suitable SaaS enabled RCM / EHR
Process platform that provides maximum coverage
of End-to-End process automation as
described in Table-1. Auto notification to
respective stakeholder should be enabled
for every touch point, if required. Robotic
Process Automation (RPA) options also
can be explored based on business
situation.
Information Four types of data to be taken care –
Anywhere Patient, Clinical, Financial and System
Step-7: Evaluate digital maturity periodically to make
sure transformation is aligned to business needs.
Conclusions: It is well understood that, ‘Digital’ is
an experience created by a sequence of events and
performed by human & machine interfaces.
Collective & cognitive decisions by such interfaces
have created a new world of emotions & science. A
systematic view of definition of ‘Digital’ and its
evolution presented in this paper provide a new
perspective that can help further improvements in this
subject. An approach has been presented to showcase
the concept of digital transformation which is
centered around digital metrics. However, this is just
beginning and will continue to evolve.

Page 5 of 8
References:
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Acknowledgements: First of all, I pay thanks to my
family members who have constantly inspired me for
creative thoughts & writing. I am also thankful to my
colleagues who have helped me with ideas &
perspectives on this subject.
About the Author: Sudipta Mukherjee is a
Solution Consultant working in Sutherland Global
Services as Principal-Enterprise Systems. He is
having 24+ years of experience in Information
Technology industry. In the past, he has worked in
companies like IBM, CyberCash & Hindustan
Aeronautics Limited and has diversified skills in
Enterprise Technology Solution Consulting as well as
Technical Service Delivery. He is certified in PMP
from PMI US, ITSM from ISEB UK, Solution
Consulting from IBM and Blockchain from
Blockchain Council. He can be reached at
sudipta.mukherjee@sutherlandglobal.com.
Table-1: Digital Transformation Options for Revenue Cycle Management (Provider Perspective)
Options for Digital Transformation in RCM from Provider Perspective
Research Manufacturing,
Functional Segment Marketing & Sales Enterprise Management
& Development Distribution & Delivery
Improve Product & Services,
Introduction of New Products Reduce cost of service, but Reduce cost of internal
Transformation Objectives & Services, Improve Improve CX, Patient 360 improve efficiency & service operations, processing
workflow, Information experience accuracy & efficiency.
accuracy and Compliance
Self-service registration
Patient On-boarding
through hand-held devices
Digitization of
documentation for eligibility
Documentation of Services check & pre-authorization in
one-go including mobile
enabled consent form.
Automated & EDI enabled
data capture from TPA &
Eligibility Check
Payer. AI driven Patient Risk
scoring.
Automated expense
Pre-Authorization & Co-pay Collection estimation & approval from
TPA/Payer
Analytics & AI driven
Medical Coding
automated coding.
Paperless bill preparation &
Bill Preparation & Presentment Workflow optimization, presentment through
RCM Service Assessment & mobile devices to Patients
Improvement Options, EDI enabled automated
Continuous Assessment of claim submission & tracking.
Claim Submission Compliance & Control Ai driven automated claim
accuracy assessment before
submission.
Automated notification of
denial, if any. Automated
Denial Management
correlations with respective
of service under dispute.
Analysis of Payment Posting
Payment Posting and automated assessment
of secondary submission.
Automated cash recognition
Account Receivable Management
& trigger Patient Billing
Automated Patient Billing
and multi-channel Cash
Patient Billing & Collection
Collection and trigger
reporting & analysis.
Detailed Service & ROI
Reporting & Analysis
analysis

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