In today's digital age, the only constant is change. Technology-driven change is the only constant. The difference between a successful company and one that fails is how well it adapts to digital transformation.
According to Deloitte, "Digital Transformation" is simply becoming a digital enterprise. This means that the organization uses technology to continuously grow and transform its business models. It also includes changing the delivery of services, interactions with customers, and other essential operations and procedures.
Marketsandmarkets predicts that the global market for digital transformation will reach 1009.8 billion dollars by 2025. This growth is driven by innovative technologies like Cloud computing, IoT and Big Data, and Analytics as well as Artificial Intelligence and Blockchain.
What is digital transformation?
Digital transformation can refer to everything from digital optimization and IT modernization to the innovating of new business models. Technology is used by enterprises to analyse customer needs and improve the end-user experience.
According to MIT Sloan Management Review, digital transformation requires organizations to be open to failure, experiment frequently, and challenge the status quo.
What types of digital transformation are there?
There are three types digital transformations:
Transformation of business processes
Data analytics, IoT and AI, Machine Learning, and other technologies, offer many valuable opportunities to transform processes and improve the company's efficiency. Many companies, such as Airbus or Domino's Pizza, have seen process transformation. Domino's Pizza has completely redesigned its ordering process with Domino's Anyware, which allows users to place orders from any device. It has greatly improved the convenience of its customers, which ultimately led to Domino's Pizza Hut being surpassed.
Another example of process transformation is the implementation of robotic process automation to automate manual back-office tasks.
Business model transformation
Business model transformations focus on the fundamental building blocks of how value will be delivered within the industry. This type of innovation is best illustrated by Netflix's reinvention in video distribution, Uber’s reinvention in the taxi industry, and Apple's (I-Tunes), reinvention music delivery.
These opportunities are strategic and complex and require leadership from Strategy or Business units. These transformations are often undertaken in separate initiatives. Nevertheless, the traditional business operations will continue as usual. Companies that transform their business models open up new opportunities for growth. They change the fundamentals of how value is delivered.
Domain transformation
The power of new technologies can redefine products and services, break down industry barriers and create completely new competitors. Amazon is a clear example of domain conversion. Amazon Web Services (AWS) was introduced by Amazon Web Services, the largest online retailer. Amazon's entry in this market is due to a combination solid digital capabilities, including storage and computing databases that support its core retail business and its relationships with many young and growing businesses that need computing services. AWS is more than an adjacency. It's an entirely new company operating in a fundamentally different space.
It is important to identify new opportunities in domains that are being created by emerging technologies.
Digital transformation is necessary.
Each digital transformation initiative will have its own goals but the main purpose is the improvement of current processes. This is vital because it offers companies the opportunity to grow, evolve, and thrive in their sector. Companies can adapt to changing industry trends through digital transformation and continuously improve their operations.
Digital transformation offers many benefits, including:
* Increased productivity
* Lower labor costs
* Operational agility
* improved customer experience
* offers opportunities to lead the industry
What is digital transformation?
Phase 1: Imagine
This is the stage to set ambitious goals and create a plan to reach them. Create a portfolio of aligned ideas that supports current trends and meets customer needs.
* Sense: Analyze trends and explore digital opportunities.
* Aspire: Share your aspirations, evaluate the potential value of initiatives, and create an ambition statement.
* Decide: Determine the provocations that will allow clients to quickly demonstrate momentum towards their ambitions.
Phase 2: Delivery
This is the phase that helps to understand users' needs and behavior in order to design and create solutions. Design, develop, and test the market to create tangible ideas.
* Deepen: Discover the unmet needs, motivations, and drivers of users.
* Design: Create a solution that combines user insight with technical capabilities and business goals to create well-balanced concepts, which can be tested in the market.
* Build: To deliver value to customers, build, test, learn, and improve iteratively.
Phase 3: Run
This is the phase that delivers and scales ambitions, grows to maturity and improves operational pillars for lasting success.
* Launch: Monitor and ensure a successful launch of your business.
* Scale: Prepare and monitor iteratively in order to ensure the availability of new releases and other updates.
* Operate: Identify operational pillars and improve them for long-term success.
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