Forget Everything you know about Digital Transformation

Mariel Lettier

Table of Contents

What is Digital Transformation?
Main Areas of Digital Transformation
Business vs. Digital Transformation
How does Digital Transformation Work?
What’s a Digital Transformation Strategy?
Why is Digital Transformation Important?
Digital Transformation Benefits
Digital Transformation Trends

It’s probable you’ve already heard the term Digital Transformation (DX or DT). This buzzword has been in the air of pretty much every industry. What’s more, it seems to be a must for any modern business strategy. But, what exactly is it? How does it work? What is a Digital Transformation Strategy? We’ll go over everything you need to know about DX, as well as some of its latest trends. Are you ready to dive in?

What is Digital Transformation?

Digital Technology is anywhere you look. But, how is it connected to a business’ transformation? If you want a short answer, DX applies digital tech to impact every aspect of a business. Among these areas, there are business processes, models, and products. In this context, Digital Techs improves efficiency, manages risks and creates monetization strategies. This means that DX takes advantage of new technologies to add value to their services. All while adapting to the ever-changing circumstances of business’ world. These include migrating assets and data to clouds or in-store digital ordering kiosks. Now that we understand the concept, let’s get some extra information on this topic.

Main areas of Digital Transformation

Digital Transformation has for main areas. On one hand, there’s business process transformation and business model transformation. On the other, there is cultural transformation and domain transformation. Let’s take a closer look at each of these!

Business Process Transformation

The Process Transformation implies changing the focus of entrepreneurial activities. With new techs and services, companies can change their business’ processes. To name a few, we’ve got Analytics, APIs, and Machine Learning. As a result, these lead to reduced costs and improved quality. Moreover, this allows businesses to take the lead with competitors.

Business Model Transformation

The Model Transformation relates to adapting to different tech and social changes. Luckily, there are many examples of companies changing their Business Model with DX. For instance, we saw how Netflix switched from DVD mailing to content streaming. Also, Uber reinvented taxi services, and iTunes changed our access to music. In summary, transforming your business model can lead to outstanding innovations. Furthermore, it can lead to considerable growth.

Cultural Transformation

A company is more than its products or services. So, things like internal values and behaviors are a big part of success. With this context, business culture takes a huge role in implementing DX. Otherwise, you might see decreased productivity and revenue. You can find out more about Cultural Transformation and its importance here.

Domain Transformation

This area applies to companies diving into new industries with success. Of course, new techs can be vital to achieve this. Let’s take Amazon as an example. While it started as an online bookseller, today it owns a streaming platform. What’s more, it even has its own cloud computing service. With no-so-obvious choices, Amazon adopted several digital tools and techs to succeed.

Business vs. Digital Transformation

You may have heard of Business Transformation. Also, you can be wondering if it’s related to Digital Transformation. Well. Business Transformation refers to operative changes, at every level. Yet, DX only pertain the business’ digital aspects. While these two have connections, as you can see, they also have their differences. You can take a closer look at business transformation in this article.

How does Digital Transformation work?

As we’ve seen, Digital Transformation means applying digital solutions. Also, it aims to improve companies while keeping them relevant. But, how does this work? What does it include? Well, it entails two sides of the same coin. While one is about finding the right tools, the other involves adopting a digital culture. For instance, you shouldn’t use a digital tool only because it’s popular. Instead, you need to find the right fit for your venture. To do so, you must identify the problem, and then identify its right software solution. Yet, if you want the solution to actually work, you will also have to adopt a Digital Culture. There’s no doubt that switching from traditional to digital models can be hard. But, for DX to work, it has to be comprehensive. Now, let’s see how we tackle this through a Digital Transformation strategy.

What’s a Digital Transformation Strategy?

Like in almost every case, a DX strategy is a detailed plan with a series of steps. With this, you’ll know which solutions apply to improve your business. This comes important when installing changes in an organized and efficient way. Yet, not having a clear strategy can be detrimental to your business. Often, this is the reason why companies can’t reach their full digital potential. Let’s take a look at the essentials of a successful digital transformation strategy:

1. Make sure every member knows how you’re running the DX. For starters, your strategy should stem from your business needs and goals. As a result, stakeholders will have a better understanding of your processes.
2. Keep in mind that Digital Transformation entails culture changes. In consequence, it will affect every aspect of your company.
3. Don’t get ahead of yourself! DX does not take place overnight. Instead, take your time and start with small but strategic changes.
4. Plan your technology implementation.
5. Test and improve. Acknowledge that you won’t get everything immediately right. Rather, take care of gathering feedback. Once you get it, you can make necessary adjustments along the way.

What’s a Digital Transformation Strategy?

Why is Digital Transformation important?

There are plenty of reasons that make digital transformation important. Let’s take a look at some of them!

Staying Relevant

In general, there are three reasons as to why a business undergoes a transformation. These relate to changes in competitors, consumer demands, or available technologies. If your venture fails to act when any of these take place, you’re risking a downhill. In a context of constant tech changes, it’s imperative to stay relevant.

Keeping up with the Competition

We’re not implying you must do every single thing your competitors do. Yet, digital tools are a strong revenue driver. If your competition is taking steps forward in this area, you should be paying attention. As a result, DX helps you to maintain competitive advantage.

Efficiency and Profitability

There are many sources proving that well-integrated digital solutions improve efficiency. In exchange, this offers increases in profitability. So, businesses embracing DX are often more successful than their competitors. Also, they tend to have higher market value.

Customer Satisfaction

It’s logical to assume that your clients use digital solutions in their daily lives. If you don’t pair up with them, you are at risk of not fulfilling their expectations. Therefore, they’ll likely lose their interest in your brand and services.

Preventing Errors

In some cases, digital financial tools means fewer errors or delays. As a result, crunching numbers and sending invoices become easier tasks. With DX, you’ll not only prevent errors. Moreover, you will avoid the revenue losses that may arise from those errors.

Digital Transformation Benefits

We’ve established its importance, but there are also many Digital Transformation benefits. Here are just some of them:

• Easier Access to Business Info
• Enhancement on Clients’ Knowledge
• Better Client Retention
• Quicker Collaborations
• Income Increments
• Transparency Increments
• Productivity Improvements
• Higher Employee Engagement

Digital Transformation Benefits

Digital Transformation Trends

If you want your business to stay relevant, it’s important to keep up to date with the various trends that arise. Here are some of the top Digital Transformation trends for 2022.

Digital Workplace Tools

The COVID-19 situation accelerated our transition to hybrid working models. As a result, this change showed the need for new digital workplace tools. This comes especially important to meet the needs of the ever-evolving workforce. So, we can expect to see more management, time-tracking and communications tools in DX.

Predictive Analytics

Data Analytics is a major asset for businesses, as it allows them to make informed decisions. Nowadays, we can even use it to make prognoses for the future. As AI and ML grow and evolve, predictive analytics has been making strides. That’s why it’s becoming more popular and affordable.

Visual Search

We all know that online sales have come a long way over the last decade. And, who’s to say there’s not a lot more to come? Well, here comes visual search. Through it, shoppers can upload photos to find similar items. Furthermore, it allows them to find cohesive styles, while saving the hassle of finding right search terms. With this, personalization takes a step further.


A major concern for businesses is cybersecurity. So, it’s no surprise to find it on the list of DX trends. That’s why many companies are taking advantage of new techs. These apply on detecting malware and boosting cybersecurity. As a result, we can expect them to be a top priority in 2022.

Personalization + Privacy

Many companies keep aiming to provide personalized experiences. But, with personalization, comes the issue of maintaining customers’ privacy. As you might know, user hesitancy to provide data keeps growing. This leads to the so-called personalization and privacy paradox. While this issue is yet to find a solution, it’s definitely one of the top DX priorities for this year.


Digital Transformation brought us some automations we’re quite thankful for. For instance, these reduce workloads, streamlines processes, and optimizes performances. Within this context, the logical next step seems to be hyper-automatization. As a result, tools like ML and Robotic Process Automation (RBA) will take the lead. This automation of automation could analyze and manage business processes.

Everything as a Service

Everything-as-a-Service (also XaaS or Anything-as-a-Service) goes beyond the traditional cloud model. Yes, the one that brought us IaaS, SaaS and PaaS. For instance, XaaS offers many new services. These include Storage as a Service (STaaS), Security as a Service (SECaaS) and Video as a Service (VaaS).

Have you heard of any other digital transformation trends for 2022?


With technology advances, users become more used to seeing it in action everywhere. As a result, DX becomes essential for businesses to keep up and thrive. Thanks for reading! Now, we covered what Digital Transformation is, how it works and its benefits. Also, we’ve gone over its strategies and its current trends. We hope this article has answered your burning questions on this topic.

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