Types of Digital Transformation


“It is not the strongest of species that survives, nor the most intelligent. It is the one that is most adaptable to change” – Charles Darwin

Accommodating new technologies or transforming your business digitally is the current need of time. But, not everyone is fully aware of what digital transformation is. 

In very simple terms, Digital transformation means integrating technology to deliver value to businesses and customers. 

Digital transformation includes technologies like network infrastructure, cloud computing, cybersecurity, DevOps, AI, data analytics, unified communications, etc. Digital transformation makes it easier to achieve challenges like building network infrastructure, using cloud services to reinvent productivity, detecting and managing cyber threats, using data analytics to empower decisions, embedding AI to automate business processes, smarter collaboration, etc.

Now, you may be thinking that technological change is nothing new so what new is digital transformation. 

Earlier many experts believed that digital transformation is a monolithic term and related only to technological changes, but later it was acknowledged that digital transformation can be divided into three types: 

  • Business Process transformation
  • Business Model Transformation
  • Cultural/organizational Transformation

So, let’s know the three different types of digital transformation:

Business Process Transformation

Processes or operations are a significant element of an organization. In order to be successful, organizations need to complete various processes and fulfill customers’ requirements effectively. With data analytics, machine learning, better technologies, robotic process automation, etc., corporations can now reinvent their processes. The simplest part of the process automation is the automation of daily mundane manual tasks. These manual processes include data entry, application configuration, data validation of different files, data load, test data creation, report generation, etc. Automating these not only deliver significant improvements in timelines, but also improves the quality and efficiency of resources. 

Business Model Transformation

Imagine a company with traditional processes and approaches to the market. As it enters the digital world, this company has two choices: it can either remain the same or it can adapt. In the former case, it can watch its customers slip away, while in the latter, it can interact with them to find new solutions. In short, the company can either ignore new technologies or take advantage of them. 

The choice is clear, approaching digitalization as an opportunity is best you can do for your business. And, in order to do this, companies should build new digital business models through a new approach. Develop them in workshops where both experts and other outsiders challenge traditional views and come up with innovative solutions. Then pick the most promising ideas to build the prototype that illustrates the new business model. With these prototype models, you can reach out to the customers for market feedback that help in constantly adjusting the business models. When you are confident that you satisfy the customer’s needs, quickly launch the solution to the market. Digital business models are fast, offer solutions to the pain point of the customer, and create new revenue streams. 

Cultural/Organizational Transformation

Cultural change is one of the most crucial parts of transforming any organization. Digital transformation starts and ends with cultural transformation. More businesses are seeking tools that bring efficiency and connectivity, however, the failure of the organizational transformation project is typically between 60-70%. Putting culture first creates a virtuous cycle. In fact, companies that have successfully implemented new technologies, typically have a strong and open culture. But above all, successful organizations are more customer-centric than product-focused. By discouraging silos and hierarchy, cross-sectional teams will be better positioned to quickly respond to customer needs. The right technology can also fuel the environment of trust, empowering team members to better help customers while also increasing agents’ engagement. 

It is important to know that technology is a tool for enhancing customer experience. If companies have the goal to be successful, digital transformation is the key to compete and thrive in this digital world.

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