Using technology to improve your business is more than standard— it's a must to stay ahead. That’s when Digital Transformation (DT/DX) comes into play!
Here, we’ll discuss the four main types of Digital Transformation with real-life examples. Hop on the DX train!
What is Digital Transformation?
Digital Transformation refers to the process of applying digital technology to all aspects of business operations.
The core idea of DX is leveraging new techs to add value by adapting to the ever-changing circumstances in the business world.
Likewise, DX goes from business processes to models and products to gain a competitive advantage and deliver superior products and Customer Experiences.
For instance, Digital Transformation can be used to examine workflows, supply chains and even team skills to allocate resources smartly.
Likewise, key examples of Digital Transformation include shifting from on-site to remote work and migrating data and assets to a cloud computing infrastructure.
Types of Digital Transformation?
DX can take different shapes depending on business needs, with process, model, domain and cultural transformation as the main types.
Let's check out what each of these types of Digital Transformation entails, with some examples at the end of each section!
1. Process Transformation
Process transformation entails modifying the focus of your entrepreneurial activities to improve internal processes and day-to-day operations.
Using new digital technology and services, such as Analytics, APIs and Machine Learning, companies can streamline and improve their processes.
A common example of Process Transformation is when companies migrate only specific applications data or services to boost operational efficiency.
This procedure reduces costs and time while improving quality and customer service by removing steps, automating manual processes and improving reporting.
Process Transformation Examples
- Adobe moved information systems to cloud computing environments to use data-driven insights and to track business performance better.
- UPS built a cutting-edge fleet management tool in 2012. Through ML and AI, this initiative optimized delivery routes, resulting in increased productivity and significant reductions in fuel costs and carbon footprint.
- Nike turned to their app to change how customers interact with its products, allowing shoppers to scan clothes and buy them straightforwardly.
2. Business Model Transformation
This DX type focuses on changing how the customer base buys or uses a product or service, reinventing a model with the least possible disruption and costs.
You may be familiar with some relevant examples of Business Model Transformation, such as Netflix switching from DVD mailing to streaming and Uber reinventing the taxi industry!
Business Model transformation can lead to outstanding innovations and considerable exponential growth opportunities!
Business Transformation Examples
- During the 2008 economic crisis, Adobe Creative Cloud moved from a license-based to a subscription-based one and divided its services into three cloud-based solutions.
- Ikea decided to focus sales on eCommerce and convert stores into fruition centers.
- Intergiro revolutionized FinTech by introducing embedded banking.
3. Domain Transformation
This DX type happens when a company successfully enters a new market, helping with revenue growth and strategic expansion.
Business Domain DX also applies to finding new industries or products when current business plans are no longer profitable.
Domain Transformation Examples
- While it started as an online bookseller, Amazon is now a giant with a streaming service and one of the largest cloud computing infrastructures in the world (AWS).
- Adobe also preyed on this type of transformation when it acquired Omniture (a web analytics company) and Magento (an eCommerce platform).
- Lego caught onto early Digital Transformation success by expanding its business operations into video games in 1997.
4. Cultural Transformation
You won't be surprised when we say a company is more than the service it provides: internal values are a big part of the success of any business!
In this context, company culture takes center stage to ensure all team members are on board and boost productivity and operability.
Cultural or organizational transformation focuses on changing how employees think about their work, collaborate and deal with problems.
Cultural Transformation Examples
- Consumer credit agency Experian introduced Agile methodologies into their workflows, leading to a shift in focus from equipment to data.
Conclusion
Successful strategies have brought several incremental improvements for companies who dare take the lead and blend these types of Digital Transformation.
Keep in mind that the most thriving DX always counts on Key Performance Indicators (KPIs) to track daily operations and business performance and make informed decisions.
We hope this article has inspired you to reinforce Digital Transformation by harnessing the power of advanced digital solutions!
We are sure these will make your business even more successful and help it stand the test of time.
