Digital transformation is the integration of digital technology into all areas of a business, fundamentally changing how you operate and deliver value to customers.
However, can you make such drastic changes without fully understanding the kind of change you need?
Digital transformation is not a single massive entity. Frequently, companies are focused entirely on organisational transformation and overlook the fact that there are four types of digital transformations.
As a result, they’re limiting themselves from taking full advantage of all digital transformation has to offer.
Four types of digital transformations:
1. Process transformation
In this type of transformation, companies can revise internal processes to lower costs, improve quality and reduce cycle times.
Adopting cloud connectivity helps link disparate processes and locations.
For example, implementing robotic process automation can transform manual tasks found in procurement, supply chain management and other administrative functions.
Modernising your logistics network and supply chain by digitising these processes and integrating machine learning and artificial intelligence helps to recognise and shape data patterns into actionable insights.
2. Business model transformation
Business model transformation aims to fundamentally change the way companies deliver value for customers.
Technology companies can reshape their go-to-market strategy and support their customers’ digital transformation efforts with the flexibility to select technology that best suits their needs.
Customers often signal their readiness for a different type of relationship through their purchasing patterns.
3. Domain transformation
The best way to think of this type of transformation is a product extension to your current offerings.
Many times, businesses have the foundation to support much more than they currently offer. They might extend current services to a new customer base or develop entirely new technology-enabled offerings.
Innovations of this transformation increases top-line sales, while leveraging existing technology.
4. Cultural/organisational transformation
Embracing a digital-first culture enables organisations to adopt agile workflows, develop a bias towards testing and learning as well as support decentralised decision-making.
However, a successful transition to a digital-first culture requires redefining mindsets and processes while also incorporating new talents and capabilities.
A typical mindset shift alters from managing production output to focusing on customer service and innovation.
Often, the cultural shift occurs organically during other transformation initiatives as internal teams adopt digital workflows and recognise the power of changing organisational norms.
Digital transformation varies greatly depending on a company's industry, specific challenges and demands. But one constant is the more technology changes, the more companies will need to adapt.
We invite you to our thought-proving virtual discussion, hosted on 7 July, where will be unpacking the top 10 questions about digital transformation. You can register here.
We hope to see you there!
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