Digital transformation is a term that defines a change in a business or product brought to the same by embedding new technologies which optimize the business operations and drive growth in today’s digitized world.
One of the many reasons that lead to a digital transformation within an organization is meeting customer expectations. Also, it brings internal efficiency and increases employee productivity. With time, digital transformation can also pave the way for new business verticals and revenue streams. On the other hand, it is also seen in aspects such as implementing new technology to create a futuristic product mockup or including AI into an eCommerce website.
Regardless of its extent, in order to survive and succeed, a business welcomes digital transformation.
Types of Digital Transformation
While digital transformation is applied to almost every aspect of a business, there are a few areas in which digital transformation shines the most and notably enhance the efficiencies of the business areas:
- Business Models: Pursuing digital technologies to transform business models certainly requires the involvement of professionals with leadership and strategy skills. These transformations are changes made in the fundamentals of how the value is offered and delivered to customers.
- Business process: There are a number of graphic design, project management, and marketing applications used to digitally transform business processes. However, in order to effectively transform business processes through the means of emerging technologies, you must scan and map out all the business processes and embed a technology where it is required the most. One of the many benefits of digitally transforming business processes is custom solutions.
The above-mentioned are the two primary areas of digital transformation. Besides these, it can also be used in areas such as domain expertise: where digital transformation can be leveraged to stand out amongst competitors, and cultures where a company can be led to become more solution-oriented.
Examples of Digital Transformation
With its number of benefits experienced and enjoyed by companies – from startups to established brands – digital transformation has shown its fruition in some of the most unimaginable ways. Following are the best examples of digital transformation:
- Netflix: What started as a DVD lender business, turned into a legendary video streaming platform. This digital transformation strategy worked mostly because it was customer-centric. With the goal of enhancing customer experience, the company then turned from an online recommendation engine to a streaming service that is used by more than 200 million users worldwide.
- Nike: From the brand identity to its supply chain, Nike digitally transformed and became savvy with data analytics, built strong digital marketing strategies, and improved its direct-to-customer sales by updating its eCommerce strategy.
It goes without saying, digital transformation is much more than installing a new communication system within an organization. It is about bringing change to a business that leads to providing added value to the target customers.