Digital Transformation

Types of Digital Transformation

Process Transformation

From data, analytics, APIs, and machine learning to other technologies, much focus within the corporate environment has been on new ways to reinvent business processes to lower costs, improve quality, or reduce cycle times. Examples of successful process transformation include companies like Domino’s Pizza, where today customers can order from any device. 

Business Model Transformation

Process transformation focuses on finite areas of the business. 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.

Domain Transformation

A prominent example of how domain transformation works is the online mega-retailer, Amazon. It marched into a new market domain with the launch of Amazon Web Services (AWS) and is currently the largest cloud computing/infrastructure service in a formerly owned field by giants such as IBM and Microsoft. AWS is a clear example of how new technologies redefine products and services.

Cultural/ Orgnisational Transformation

A redefining of organisation mindsets, processes, talent, and capabilities for the digital world is always needed to achieve long-term digital transformation for any industry. The most successful corporations recognize that digital transformation requires a flexible workflow, a decentralised decision-making process, a bias toward testing and learning, and a greater reliance on different business ecosystems. One of the best examples of this cultural/organisational transformation is the consumer credit agency Experian.

What are the three approaches to digital transformation?

Wait for proof of digital success

This first approach will help organisations focused on empirical results. The difficulty with this approach is the tremendous risk of remaining idle until your digital transformation catches on. It provides competitors with a distinct advantage if their digital success happens faster than it does for your company.

Develop an all-inclusive digital strategy

This approach focuses on getting the strategy as complete as possible from the start. It requires a robust long-term plan. The all-inclusive digital transformation strategy focuses on changing the culture and rapidly implementing innovation. It is usually quite an expensive approach with many dangers.

Incremental delivery of digital skill

This approach focuses on delivering benefits as a company moves toward a potential changing digital destination after identifying an initial target and route. But as the organisation progresses, lessons learned and new inputs are considered, thereby changing the digital goal and sometimes the path to the destination.

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