Modernization is a phenomenon as old as mankind itself. The tendency to think about new and improved ways of doing things and to try them out in practice has led to greater advancements in modern technologies. The adoption and application of modern technologies is the new comet landing on our traditional approach of business. Class act companies like Amazon, Airbnb, and Tesla are changing there I say revolutionize the way we think about each of those respective industries.
But in today’s digital world, technology gaps are no longer a barrier. Any company can access and acquire new technologies required to unlock new growth. The building block technologies unlocking new business domains (artificial intelligence,machinelearning, internet of things(IOT), is sourced these days not only from the companies like Microsoft or IBM but also from growing.
start-up system, wherever we innovation is leverage expeditiously, from new sources, are reaping the advantages of recent growth
The technology revolution is creating a fierce competitive space for established business who not only have to deal with new competitors in the market but also keep an eye on its existing competitors and the methods they are adopting in the digital technology era. The need to stay ahead of the competition has led to a race to digitally transforming business.
The buzz word with most executive and business leaders is digital transformation. What does that really mean? What type of transformation are companies involved with? The reasons for digital transformation are understandable: need to fix competitive landscapes, addressing radical customer centricity needs.
Digital transformation is multi-dimensional in nature meaning that execution should be a team effort with involvement from Chief data Officer (CIO) or Chief Digital Officer (CDO), Strategy and Business Unit leadership.
Although new technologies are creating vital opportunities, most organisation pursue culture/organisation transformation as the key focus for transformation. While organisation/ culture transformation is very critical for overall successful digital transformation, the key driver in larger success transformations lies in the pursuit of business transformation initiatives.
Digital transformation falls into various types names:
Business process transformation involves the organisation adoption of new technologies (Data, analytics, APIs, Artificial intelligence, machinelearning to reinvent processes throughout the corporation with the objective of lowering prices, reducing cycle times, or increasing quality. Domino’s Pizza have completely re-imagined the food ordering process; Dominos’ AnyWare lets customers order from any device. The process transformation has not only innovated customer experience but also helped push the corporate to overtake pizza pie Hut in sales. Other notable example is the implementation of Robotic process automation (RPA) implementation to transform workplace processes like accounting and legal services
Business Model Transformation on the other hand entails revamp of ancient business models. Business model transformation focuses on elemental building blocks of however worth is delivered within the business. Most notably examples are:
1.Netflix’s reinvention of video distribution
2. Apple’s reinvention of music delivery (I-Tunes)
3. Uber’s reinvention of the taxi industry
4. Allstate exploitation information and analytics to un-bundle insurance contracts
successful business model transformation opens vital opportunities for growth. These transformations are led by strategy and Business Units that launching separate initiatives.
Cultural/Organizational Transformation is the most prevalent transformation style. with corporations recognize digital transformation requires agile workflows, a bias toward testing and feedback loops devolved decision-making, and greater dependence on business ecosystems. Cultural/organizational transformation should be seen as a long-term requirement of success and product of business transformation rather than a prerequisite. Notably examples of successful cultural transformation is seen with consumer credit agency (Experian) who changed its organization ways of working by embedding agile development and collaboration into its workflows, thereby driving a fundamental shift in employee focus from equipment to data, company-wide. .
Domain transformation is the realm of transformation with enormous opportunity. This is kind of transformation that gives best opportunities to form new worth. Within domain transformation, new technologies are redefining product and services, blurring business boundaries and making entirely new sets of non-traditional competitors. Competitors fear the the terribly real chance for these new technologies to unlock totally new businesses for his or her firms on the far side presently served markets.
A clear success story of domain transformation works is also the web distributor, Amazon. Amazon dilated into a brand-new market domain with the launch of Amazon internet Services (AWS), currently the most important cloud computing/infrastructure service. AWS is not a business extension for Amazon, AWS business represents nearly 60% percent of Amazon’s annual profit. The reason for the successful domain transformation is built on the sturdy digital in-built storage capabilities, computing databases to support its core retail business and base of thousands of relationships with young, growing firms that require computing services to grow. Whilst domain transformation is quite tempting adventure, digitally-native firms (like Apple, Amazon or Google domain transformation into new domains are special due to their ability to amass and leverage technology than most larger companies.
The real question for organisation is to recognize the new opportunities afforded by new technologies and identify digital transformation style warranted to achieve the outcomes once the decision to transform was initiated .These opportunities involve re-defining business boundaries and initiative, analysis of existing business process, defining business process and the role of the emerging technology to establish the organisation position in the ever changing and demanding business world.
The 4 Types of Digital Transformation by Andrew Annacone Managing Partner at TechNexus Venture Collaborative – Digital Transformation | Venture Capital | Strategic Innovation