“Digitalization is rewriting the DNA of business”-Patrick Bass, CEO ThyssenKrupp, North America.
In the era of digital Darwinism, customer expectations evolve at lightning-fast speed and go way beyond the conventional canons. Thus, it has become imperative for businesses to embrace digital transformation.
Digital transformation is not an entirely new entity, it began decades ago with the arrival of computers, internet, e-mail and the list goes on. However, in this day and age, the rate of transformation underway is rapid and considerably more significant.
With the boundaries of the digital and physical world blurring at a steady pace, there are profound implications on the way business is perceived and performed.
In the light of such market trends, digital transformation has evolved to be an essential for businesses across all sectors to ensure future growth, create brand awareness & loyalty, improve operational efficiency and customer experience, says a leading digital marketing company based in San Francisco.
What is digital transformation?
Digital transformation is the incorporation of digital technology into all domains of a business including models, processes, capabilities, operations and ultimately delivering value to customers.
Digital transformation being a cultural change, organizations must create readiness for the change by persistently challenging the status quo and experimenting with new ideas, applications and technologies.
Changing Business Models
Digital transformation is rewriting business models in several ways. In order to understand how businesses eventually benefit, let’s take a look at the changes underway in the present models.
Without further ado, let’s dive in:
- Outcome-based modelsare here
Commercial models existing between providers and buyers of products/services are finally moving towards outcome-based models after years of speculation. These models focus on value-based measurable results.
- Extended business reach
Take your business virtually anywhere beyond conventional market segments, customer demographics, physical locations. You can easily reach a wider audience with the boon of digital transformation.
- Addition of digitalized products and services
The products/services are designed and delivered sans any barrier between the businesses and customers that they serve. Companies could also incorporate digitally available products/services to augment their profit.
- Enhanced value delivery to customers
Develop a compelling value proposition by creating connections with other organizations in new markets and in turn improving the existing value available to the patrons.
- Being part of a shared economy
Extend access to underutilized sources to other companies and customer and derive more value from the same. In return, gain access to their resources.
- Derive more value from digital platforms
Utilize the previously unused value of customer relationships to deliver improved customer experience, join forces with partners to reap better results.
In short, not a single time-tested aspect of the business right from sourcing materials to developing products/services is immune from the wave of reinvention and re-imagination. The confluence of innovation and technologies like Big Data analytics, social, mobile, cloud has only fueled the pace of business transformation.
For some businesses, digital transformation is a disruptive force whereas for others, it is the gateway to unpatrolled opportunities.
With numerous businesses espousing digital transformation and reaping dramatic benefits, digital transformation is no longer an option for businesses but a necessity, if they wish to stay ahead and stride the right path to future growth.