Digital transformation is the integration digital technology in various areas of your business changing the way you operate and delivering value to customers . It also involves a cultural change that a organization requires to challenge and adapt and get comfortable with the new process.
Types of Digital Transformation
Process Transformation
Any company need to change or reinvent their process model frequently to lower costs, improve quality, or reduce cycle times.
Example- Dominos Pizza changed their business model from Offline to Online and order from any device anywhere, way before the Ecommerce started whereby they had the first movers advantage over their rival players.
Example – Asian Paints changed the way paint industry operated. Allowed users to actually see visually the color preference for each walls of your house and helped users to decide before going to local shop for purchase.
Also using Robotic process to automate the entire back end process and improve productivity. Process transformation add tremendous value in a company.
Business Model Transformation
Company have stated using Digital technology to transform or change traditional business models. In the fast moving Digital era unless Business models are changed or updated your business will not exist.
Example- Tata Homes –Purchasing house is a long process and after multiple visits we decide on based on our preference . Now you purchase a house based on your preference through online and all other hassle like approval, loan is taken care by the service provider. This helps to reduce the multiple visits to site . This is similar to phone banking revolution wherein with a single app we get access all facilities of banking.
Example–Healthcare – Now fixing online appointments with Doctors based on your preferable for virtual consultation. Thus will help you really visit the doctor only if required . These business model transformation create tremendous value both to customer and system provider.
Domain Transformation:
Domain transformation has to led to tremendous growth opportunity for companies like Amazon. With launch of Amazon Web services which is one the largest Cloud computing/ Infrastructure along with existing players like Microsoft & IBM . With most of data stored in Cloud moving into new domain business opens up huge opportunities.
Cultural/Organizational Transformation:
For all the above transformation to work there is cultural and organization transformation changes required . Organization are runs by people and systems unless they share the vision of the company and understand there is required shift in way people need to operate and adapt to new technologies which in add value to company and consumers. Most corporations recognize digital transformation requires a flexible workflow, a decentralized decision-making process, and greater collaboration from the workforce.
Example– Tata has acquired Air India . Existing people and systems need to adapt to change in culture required to keep up with rival players and offer superior value to end users.
