Digital Transformation: Why is It Relevant in the Constantly Changing Biz World!
Digital transformation is one of the prominent business transformation trends in the biz world. We can simply brief it as an approach, where companies step back and revise their processes like “Do we need to change the current process and strategies for better customer experience with more personalization?”
Now, let’s have a quick understanding of why digital transformation is relevant in the current scenario and how important it is for companies to have a digital transformation strategy.
What is Digital Transformation?
Digital transformation is a process of integrating digital technology into the business to improve all areas of your processes and develop upgraded business models. It can be a change in the leadership team, the innovation of a new business model or the implementation of a new collaboration tool to improve communication among your employees, customers, etc.
In other words, it is a smart way to implement innovative things with the clever use of technology that will take your business to the next level.
Why it is relevant in the current scenario?
It is challenging for enterprises to rely on traditional business models in this world of ever-changing customer demands and varying technology. Be it automation, logistics, software, hardware, retail or medical sector, be it small, medium, or large businesses, if they can’t adapt to these drastic changes, then they risk themselves losing their customers to their competitors.
For example, there are some who don’t trust the solutions that aren’t developed in-house. This mindset prevents overall business growth. Successful companies are open to acquisition or outsourcing to make up for their lack of internal capabilities.
Organizations should be open to changes not only in this aspect. They should be open to reinventions with a dynamic and Agile attitude when it comes to the entire business operations as well.
Why Digital Transformation is having high Importance in the Biz world?
Let’s take the example of Netflix, the new age media-services provider. It started like a mail order service provider founded by Marc Randolph and Reed Hastings. Then they gradually moved to the brick-and-mortar video rental business. They were being fined at a Blockbuster store for being late to return a copy of an American space docudrama film. This was the stage when they both sat together and redesigned the idea of Netflix. It was a huge transformation of their business model from renting movies on DVD to the world’s seventh-largest internet company by revenue.
Today, they have disrupted the traditional way of broadcasting as a whole by offering a full-fledged library of on-demand content at ultra-competitive prices. Integrating digitization to their business helped them to get deep insights into their customers’ preferences, viewing habits and even dislikes.
Digital transformation inspires businesses to reconsider each and every segment to unlock better results. Business leaders must constantly challenge their organizations to ensure that every area of their business is getting digitally improved day by day.
I would like to know your thoughts on how you look forward to the digital transformation in your organization? Comment the challenges in your way!