Digital transformation is the process of using digital technologies to create new — or modify existing — business processes, culture, and customer experiences to meet changing business and market requirements.
It begins and ends with how you think about, and engage with, customers.
There are three essential components of a digital transformation:
- the overhaul of processes.
- the overhaul of operations, and.
- the overhaul of relationships with customers
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The four main areas of Digital Transformation are:
Process Transformation:
Process transformation entails modifying the elements of a business’s processes in order to achieve new goals. Examples of successful process transformation include companies like Domino’s Pizza, where today customers can order from any device. They’ve entirely reimagined the food ordering process. This innovation has helped them to overtake their rival Pizza Hut concerning sales.
Business Model Transformation:
Business model transformations aim at the foundational building blocks of how value is delivered in a specific industry. In essence, companies are using digital transformation to change traditional business models. Examples of this type of reinvention of the business model include Netflix’s redesign of video distribution and Apple’s reinvention of music delivery: iTunes.
Domain Transformation:
A prominent example of how domain transformation works is the online mega-retailer, Amazon.AWS is a clear example of how new technologies redefine products and services, blurring industry boundaries and creating entirely new sets of non-traditional competitors. Domain transformation currently offers one of the most significant opportunities for company growth.
Cultural/Organisational Transformation:
The most successful corporations recognize digital transformation requires a flexible workflow, a decentralized decision-making process, a bias toward testing and learning, and a greater reliance on different business ecosystems.
Digital transformation varies greatly depending on a company’s industry, specific challenges, and demands. But one constant is the more technology changes, the more companies will need to adapt.
