What Are The Four Types Of Digital Transformation?

A better future awaits those who embrace change by taking advantage of digital transformation before competing entities swoop in and undercut our current offering by creating a better alternative that’s equipped to function in the digital world.

Despite the growing digital transformation trend, some businesses are still not on board. The why and implications for your company have been discussed repeatedly in lectures across industries. You may have even spoken to your friends at other companies – no longer can you ignore it.

Is it just a catchy way to say you’re taking action to make it seem your business is up-to-date with all trends, or do these steps make sense for the organisation’s current situation?

This article explains four types of transformation that companies might go through when implementing new technology to improve their services. The changes can affect both internal teams and external customers.

What is Digital Transformation?

Digital transformation has been a buzzword for years now, but what does it mean?

It’s not an easy question to answer. In general terms, we can say that digital technology is being integrated into areas of your business, resulting in fundamental changes. These changes will help you deliver more value and improved efficiency across the board.

When was the last time you went into the bank? Image credit: NCA Newswire/ Nicki Connolly

The world is changing at an unprecedented pace. To stay on top, you have to be willing and able to change how things are done and who does them. That often means breaking the norm for long-standing practices to make room for new ones.

We all know that digital transformation is an ongoing process, but did you realise it can be considered a living entity? It evolves and changes with time.

When it comes to digital transformation, a roadmap is crucial for success. To become more efficient using technology in your organisation, the end goals will keep shifting and changing.

Enterprises have a responsibility to their customers, which means they must always lookout for ways to improve user experience. Your users may be members of your team or customers who purchase your products or services.

Improvements can come in a wide array of formats. Improved on-demand training, migration of data to the cloud, or using artificial intelligence for enhanced processes are examples of ways you could accomplish this. The possibilities are endless.

What is the Importance of Digital Transformation?

Every company needs to be evolving for them not only to stay competitive but also avoid being left behind by their industry.

Transformation initiatives are an essential part of this process because they help improve current processes while simultaneously setting goals that can lead to even greater success!

We all know that digital transformation is the future, but fewer companies can achieve their targeted business outcomes from it. One reason for this may be because leaders focus more on transforming than just running their businesses – which sets them apart in today’s competitive landscape.

The increasing use of technology in the industry provides companies with an opportunity to innovate and create new products.

In this sense, it’s opening up business opportunities by combining practices that have never been combined before, which results in unique techniques only provided through digital transformation projects.

It also improves integration among departments and communication between them because all parties will be able to communicate effectively using standard tools without worrying about language barriers or cultural differences.

The digital transformation is not only for enterprises to stay on top of their game but also a way for them to continue improving how they operate. Improved training programs can lead to an engaging, informative end-user experience and the use of automation tools and artificial intelligence.

The Benefits of Digital Transformation

The right technology can significantly improve how your business functions and customers engage with it, so don’t miss out on the benefits of digital transformation!

  1. With the right tools, you can keep costs down and productivity up. For example, enterprises spend plenty of time training new employees or updating digital resources only to have these tasks become outdated quickly because technology is changing so rapidly; but with modern software designed for fast-paced organisations, this becomes a thing of the past.
  1. Improves the customer experience by giving them a great multi-channel touchpoint that will really make their lives easier and more convenient. Tech savvy customers want this improved method of communication for themselves, so they can have an incredible time while shopping or using your service. Your relationships with your clients will continue to improve through better digital interaction with each device available.
  1. Staying ahead of the competition is crucial if you want to thrive in today’s digital age. Your competitors are using transformation regardless of whether or not your company has made changes.

What are the Types of Digital Transformation?

Nothing is more important to us than the digital transformation of our business. Explicitly or implicitly, this is a common refrain among business executives. Digital technologies transform markets, create new ways to deliver value to customers and alter competitive landscapes.

Transformations can occur in four different ways: business processes, business models, domains, and cultural/organisational transformations.

Process Transformation

The use of technology to improve business processes has been a major trend in corporations. Data, analytics, and APIs are just some examples that offer valuable new pathways for companies throughout the entire supply chain.

From production up, we can overhaul their value chain to lower costs while increasing quality or reducing cycle times, so they can get products out faster than ever before without sacrificing anything.

We see process transformations in customer experience, where companies like Dominos’ Pizza have wholly re-imagined the food ordering process.

The AnyWare system lets customers order from any device and has helped them overtake competitor sales numbers by making things more convenient for consumers.

Technology is transforming the way we do business, and many companies are adopting robotic process automation to streamline back-office tasks like accounting or legal. This type of transformation can create significant value for your organisation as it becomes a must-have technology in these areas.

If your company isn‘t constantly evolving with the trends, you will be left behind by the competition and lose out on potential customers who want what you have to offer them.

As such, it’s no surprise that process-focused efforts towards innovation often lead with an eye on the bottom line – creating significant value for corporations who choose to invest wisely.

Business Model Transformation

The digital revolution is transforming the traditional business models of many companies.

Process transformations focus on a finite area, but if you want to change your company’s fundamental building blocks, this kind of transformation will be necessary instead – that means going all out with technology.

While process transformations focus on finite areas of the business, such as tasks or processes within a company itself, Business Model Transformations aim to change how value is delivered throughout an entire industry.

Innovation is an essential part of the business world. It doesn’t always have to be about creating something new; sometimes, it’s taking existing ideas and improving how we use them.

Image credit: Netflix

Netflix reinvented video distribution. Apple revolutionised music delivery (iTunes) with their innovative approach that removed constraints from the old systems by eliminating physical copies of media files in favour of online streaming services only – all while maintaining quality control.

By changing its fundamental building blocks, an organisation can achieve what some call “business model transformation” and open up new opportunities for growth in ways that were not possible before.

More companies should pursue this path. It’s worth looking into if you’re ready to make your mark on history or just need something different than repeatable work with low margins but high volume sales.

Domain Transformation

While we see a surprising lack of focus in this area, it is an opportunity that will not soon be forgotten.

With new technologies redefining products and services across all industries–blurring industry boundaries to create entirely non-traditional competitors–the potential for domain transformation has never been riper than now.

The current generation of executives may be ignoring the opportunities that arise from these new technologies.

This type of transformation, not just serving existing markets but creating value in other areas entirely, will offer most companies lasting success through innovation and adaptation of themselves or their clients’ offerings to changing consumer demands.

A great example of how a company’s domain has successfully transformed into something new and different would be Amazon. The online retailer launched their cloud service, called “Amazon Web Services.”

Amazon’s entry into this domain was made possible by combining the solid digital capabilities it had built in storage computing databases to support its core retail business with an installed base of thousands of young companies that increasingly needed services.

Cultural/Organisational Transformation

Companies must redefine their organisational mindsets and processes to succeed in the digital world.

They should focus on agile workflows while making bias toward testing/learning decisions that will lead them to be more decentralised with less dependent centralised decision-making abilities (which can also include a greater reliance upon business ecosystems).

The goal? To bring about long-term transformation within your organisation, so you’re prepared when it comes time for full-blown counterparts.

Image credit: Experian

Experian is a leading consumer credit agency that has successfully undergone digital transformation.

They put the organisation’s agile development and collaboration efforts into practice as they changed their workflows, driving a significant shift in focus from equipment to data across the company-wide employee base.

Experian recognised that they needed an API strategy for their organisation to be successful.

They began with a digital project which forced the teams and departments within Experian apart into different workflow practices. It demonstrated how powerful this new technology is when used correctly – creating change across old organisational norms.

Let’s Wrap

The best way to thrive as a business leader today might not necessarily work tomorrow due to entirely too much change happening all at once.

It makes managing digital transformation especially challenging but also necessary if you want your organisation’s success based upon its ability (not just willingness)to innovate.

As industries continue to change and new technologies are developed, corporations need to pursue digital transformation in a multi-dimensional way.

This means that they should not only focus on developing their online presence but also on adapting their business models, organisational structures, and cultures. Those that do will find greater success than those that don’t.

Are you ready for the future of digital transformation?

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