Monday, May 13, 2019

Concepts of digital transformation

Digital transformation has a different look for every organization. For this reason, it may be difficult to settle for a definition that is applicable to all organizations.

Generally speaking, digital transformation can be defined as the incorporation of digital technology into all aspects of a business which leads to changes in how the business carries out its operation and how value is delivered to customers. Past that, it is a cultural change that needs organizations to keep experimenting, challenging the status quo and getting comfortable failing.

This basically means sometimes moving away from business processes that have been in existence for a long time which are the foundation of the organization and choosing practices which are relatively new and still being defined.

History of digital transformation

Successful companies are required to adapt in order to meet the market forces which are ever changing. They can either do this or face getting extinct. Organizations that are unable to foresee how upcoming technologies were able to make their products outdated and keep failing.
Society’s digitization began in the latter part of the 20th century and was later pushed to the early part of the 21st century triggered the digital transformation lots of organization are picking up today.
Due to the convergence of technologies which are shaping the expectations of modern customers, organizations need to transform a bit more rapidly, most times at a pace that is faster than usual.
Cloud computing, mobile technologies, artificial intelligence as well as other digital revolutions have seriously changed how fast customers can attain information. This, in turn, changes the quality and type of product and services they anticipate from organizations and other agencies they relate to. Similarly, this same digital tools collection has changed what other stakeholders like investors and business partners anticipate from businesses.

Examples of Digital transformation
Lots of individual business and industry are either currently undergoing transformation projects, thinking of strategies for digital transformation or are battling with the idea.

Some have already gone through digitization. An example according to experts is General Electric. GE grew from its roots in manufacturing to services like IoT platform which ensures monitoring continually and machine optimization.
An example of a company that has gone through digital transformation successfully is Nespresso. The producer of speciality coffee machine which is an operating arm of the Nestle Group based in Switzerland unleased a system for customer relationship management which was cloud-based. It offered customers multi-channel access to customer service and shopping.  They were able to get in touch with the company regardless of if they used a mobile device, a website, or went physically to the store.

 A 360-view of all its customers has given Nespresso the capacity to head into additional markets and enhance sales.
Netflix is also an example of digital transformation. It began its DVD rental company in the year 1997. It was based in the mall. Now, it is a video streaming service online that provides customized offerings depending on what each customer prefer.

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