Digital transformation is the process of rethinking operation and work models to include increasingly digital solutions. There are four types of digital transformation: process, business model, domain, and cultural/organizational transformation. Most digital transformation takes place to increase business efficiency and agility for clients, customers, and partners. Let’s go through each type and the role it plays in your company’s future.
Digitizing business processes is a popular way to start the ball rolling on your company’s digital transformation. Those processes can be implemented to lower costs, improve the quality or quantity of products or services, or to reduce cycle times. This can be as simple as creating a mobile app for your business to the inclusion of robotic process automation.
The coronavirus pandemic accelerated the transformation of many business processes – online ordering and the implementation of collaboration tools for meetings, communication, and file sharing.
Business Model Transformation
Process transformation happens in specific areas of your business – business model transformation is more about changing the foundation of it. Businesses in antiquated industries or with outdated products or services must focus on this transition to continue to be relevant to their targeted customer base. Here’s an article with some great examples of companies that successfully navigated business model transformation.
As new technologies develop and define the future of products and services, domain transformation becomes a tremendous opportunity for a business to reinvent itself.
Amazon is often used as a prime example of how domain transformation can change the trajectory of a business in astronomical ways. Once a bookselling website, Amazon Web Service has created an empire of technology that can conceivably support dozens of types of businesses. Another example is Netflix, which got its start as essentially an online Blockbuster video rental store, is now one of the biggest sites for entertainment media consumption in the world.
Cultural and organizational transformation comprises the restructuring of organizational mindsets, processes and procedures, talent, and scope of practices. There are many examples of this that have come to light in the past year.
The coronavirus pandemic shoved remote work to the forefront of many businesses’ minds. Some businesses adjusted their company culture and organizational aspects to accommodate more flexible workflows and productivity-based workloads and evaluations. Those businesses were more likely to survive the shutdowns and issues caused by the pandemic, while those businesses that merely implemented new technology to keep operations going faced more difficulty integrating a new technology with an old organizational structure.
Digital Transformation Approaches & Tips
More and more, adaptability is proving to be a business’s most important asset as we transition to the post-pandemic economic climate. So here are some of the best digital transformation tips and approaches.
First, you need an all-inclusive strategy. You can’t meet transformation goals if you don’t define them. Meet Me In The Cloud has a proven 6-step methodology that can ensure thorough and efficient technology adoption throughout your company.
Another great way to achieve digital transformation is to foster an organizational culture that is comfortable with change, at all levels of leadership. When growth and adaptability are enmeshed in the fabric of your culture, digital transformation is then a smooth, continuous evolution rather than one that goes in large jumps dedicated to “catching up.”
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