Digital Transformation is not just about technology but also about business leveraging the technology and their mode of reasoning. The first thing that pops up in most people mind about #digitaltransformation is how they think of it as technology. However,while technology plays a vital role in the transformation, it is not just about technology alone. David Rogers book (The #Digitaltransformation Playbook) describe how digital technologies can change how we bond and generate standards with our customers and how we need to think about the competition and the procedures the business transform.
He stated five vital domains of digital transformation plan which is: customer, competition, data, innovation, and value. Even though these essentials are well-defined, the transformation isn’t simple. There are several challenges, as well as the right management and idea to initiate the change; defining values of innovation; leveraging data; adjusting to technology change; expecting customer desires, and tracking outcomes.
All through these five domains, digital technologies are redefining several basic principles of this plan.
Customers
One vital part of the digital transformation is to change the entire customer experience. Rather than aiming at attaining efficiencies of scale through mass communication and mass production, utilizing digital transformation to customer system, customers are strongly connected and relating in a manner that are transforming their relationships to business.
Digital technologies change how businesses bond and make significance with their customers. The relationship turns out to be much more synergistic: the interactions and assessments provided by customer’s place them as greater influencers than advertisem*nts. Furthermore, the active involvement of customers has to turn out to be a vital driver of business success. They are connecting and manipulating each other in influencing business statuses and brands.Their use of digital tools is transforming how they see, assess, acquire, and utilize products and additionally, how they communicate, relate, and stay attached to brands.
Competition
Gradually, business is challenging not just with competitor companies from within their own productions,but also with firms from outside their businesses that are taking customers away with their new digital skill. In this digital plan, external firm’s that present competing worth to our customers will eventually turn out to be our major competitor if that firm starts attending to our customers openly.
A great example of this strategy is the policy of business models, which allow one business to generate and take numbers of value by simplifying the connections between other businesses and customers. Uber, for instance, is creating a business whose significance was made basically by its partners, with its platform performing as the key connection point. We possibly will find ourselves competing aggressively with an established competitor in one area while at the same time leveraging their skills by collaborating in a different sector of the business. Progressively, the competitive resources may no longer exist within their own business; rather,they may be controlled in a system of partners that come together to create looser business affiliations.
Data
In a long-established business,data was costly to acquire, bulky to stock, and used in administrative storage tower. Managing this data require the acquisition and upkeep of huge IT systems.However, in modern business, data is being acquired at a unique rate not just by firms but by everyone.
Furthermore, cloud-based systems for keeping data are gradually becoming cheap, freely accessible, and simple to use. The resulting data was applied mainly for assessing, predicting, and decision-making.
Today in the digital world, most data accessible to businesses is being made in unparalleled quantities from every discussion, dealings, or procedure within or outside these businesses. With social media, mobile devices, and radars on every item in a firm’s supply chain, every business now has right to use to a stream of shapeless data that is produced without preparing and that can progressively be exploited with new logical tools.
These “big data” gears let businesses to generate new kinds of expectations, discover unpredicted outlines in business pursuit, and unravel new sources of value.
Innovation
Conventionally, innovation was costly, high incentives, and limited. Testing fresh concepts was demanding and costly, so businesses depend on their executives to define the most feasible possibilities to be created, tested, and detect in the market. Innovation was faced with a particular concentration on the completed product because market testing was difficult and expensive.In the present day, digital technologies have allowed constant testing and investigation with an intensity of complication that would have been unimaginable in the past.
Samples can be made for changes and concepts tested rapidly by user groups. Continuous understanding and the fast duplication of products,both before and after their launch date, are turning out to be the norm. However,digital technologies have made it simpler and quicker to test concepts,and gain a market response from the very commencement of the innovation process, all the track to launch, and even subsequently.
Value
To succeed in the rapidly-changing digital era, every business must be prepared to adapt early, and to continually re-think how they can creates value for its customers. Digital transformation is required to bring more real and insubstantial value. Given the obvious changes, this should be easily materialize. However, the changes comes with some certain costs and risks.
In the digital age, businesses should ponder to concentrate outside their present business model and how they can best provide value to their customers as new technologies restructure chances and desires or it may mean generating a decent means to occupy a business’s customers while they are still devoted to it. It is thus important to understand the opportunities and potential challenges surrounding value creation in digital environments for the various groups.
Examples of industry that implemented digital transformation:
- What Facebook did during its pivot to mobile platforms
- What the recorded music industry did once it teamed up with Apple to launch the iTunes Store for music consumers.
