Over the past few years, the term digital transformation has steadily been creating buzz among the global industries; yet for all the excitement, few people are confident in what digital transformation actually means. More so, if people don’t understand the core concepts of digital transformation, how can they even be sure as to whether or not undergoing a digital transformation is in their company’s best interests. To help clear up some of the confusion, we’ve compiled a few defining points of digital transformation, along with some examples.
So what exactly is it?
To begin, one of the best ways to define what digital transformation is – is by defining what it is not. There are a lot of things that digital transformation has the potential to be confused with. It is not the adoption of new technologies to fit old systems, but instead the process of rebuilding of a business’ systems from the ground up to accommodate a steady shift in technology. Digital transformation can best be thought of as the continual adaptation to a constantly changing environment1.
So who has done it?
Two classic examples of companies that harnessed digital transformation are ride-sharing giant Uber, and online hospitality service Airbnb. At their core, both of these businesses were built around technological services, that allowed them to tap into the saturated markets of vacation rental and transportation, in a completely new fashion. We’re not suggesting that taking what made these companies successful and applying it to your own is a great idea, but instead, understand that building technology into the foundation of your business’ strategy is key to staying ahead of the competition.
So where to now?
So how does one go about incorporating the key concepts of digital transformation into their business; and more importantly, would doing so even be right for your business? We’ll be exploring the key points of applying a digital transformation to your business strategy in the New Year, so be sure to check back then. In the meantime, feel free to give us a call, as we’d be happy to discuss whether or not a digital transformation strategy is right for you.