What does digital transformation refer to in business operations?

Digital transformation in business operations refers to the incorporation of technology across processes, fundamentally changing how businesses operate and deliver value to customers. This comprehensive integration enables organizations to leverage technology to improve efficiency, enhance customer experiences, and generate new business models.

By focusing on digital tools and frameworks, businesses can optimize their workflows, automate routine tasks, and use data analytics to inform decision-making. This transformation goes beyond merely implementing new technologies; it encompasses a cultural shift that encourages collaboration, innovation, and agility, allowing companies to adapt to changing market conditions and customer needs more effectively.

The other options, while relevant aspects of a business's operational strategy, do not capture the full scope of digital transformation. For instance, setting policies for data quality is crucial for maintaining data integrity but is just one component of the broader digital transformation initiative. Similarly, creating neural network models pertains specifically to a subset of technology used in fields like machine learning, and while it can play a role in transformation, it does not define the concept itself. Lastly, reducing manual work can be a result of digital transformation but is a narrow focus that doesn't encompass the comprehensive changes involved in effectively integrating technology into every aspect of business operations.