Digital transformation is an important strategy that companies need today, as they can leverage through digital transformation of new tools and technologies to improve workflow, develop smart products and processes, achieve greater customer engagement, and create a more efficient process.
This benefit of digital transformation can happen, gradually, With small changes to update old systems at different levels of the organization or through a broad shift in the culture and operating model of the entire company and in both cases, Companies typically seek to achieve one or, based on the specific goals and digital maturity of an enterprise, For more information on digital transformation and its types, needed by enterprises and companies, read with us.
What is digital transformation?
The use of digital technologies to change traditional and non-digital business processes and services, or to develop new services and services, in order to meet customers' expectations and the changing market is known as digital transformation, this process completely changes the way companies are managed and how value is delivered to customers.
Digital transformation is critical because it allows companies to adapt to rapidly changing markets and continuously improve their operations, for companies, this means constantly searching for ways to improve the user experience, this can be achieved by providing better training on demand, transferring data to cloud services, using artificial intelligence, and other methods.
What are the types of digital transformation?
Technology drives the need for digital transformation and supports the digitization of the organization. In addition, there is no single application or technology that enables digital transformation. Various types of digital transformation have been made that companies need to develop their businesses. These are the most prominent types of recognized:
1. Transformation of Business Operations
Business process innovation changes the way companies operate internally, it affects how employees access and use new technology in their day-to-day jobs, including automating manual processes, maximizing investments in marketing and R&D by collecting new data and incorporating it into business decisions.
The main goal of digital transformation regarding the transformation of the business process is to reduce the cost, while other objectives include reducing the time needed for marketing, improving the quality of products and services, improving the customer experience, and improving the brand image.
2. Transformation of business model
This kind of digital transformation changes business models to adapt them to the new digital environment, and this requires careful consideration of how the essential business of the industry works, successful change can disrupt an entire industry - as Netflix did for home videos and Amazon retail.
Business model transformation often includes the strategic part of the business to explore the potential of new ways of doing business, beyond what is currently in place in the industry, and digital transformation based on business model transformation focuses on innovation and "thinking out of the box" to improve business outcomes.
3. Convert Domain
Transforming the range means exceeding the traditional limits currently facing the brand's markets and potential. For example, Amazon Web Services has launched online retailer Amazon Web Services, now the world's largest cloud computing provider with billions of dollars in revenue, and Amazon has acquired existing capabilities (large and highly advanced data centers) and turned them into a new opportunity that has created a whole new market.
This domain transformation potential exists in many industries and is driven by technologies such as artificial intelligence, new types of mobile phones, wearable technology and the Internet of Things.
4. Cultural Transformation
Digital transformation has a cultural component, which is critical to the success of any digital transformation initiative. For many organizations, this transition can be difficult. Digital transformation must begin with educating existing employees, to ensure everyone understands the potential of new technology to improve business, establish internal collaboration, and create new ways to engage customers.
Leveraging technology and creating a continuous innovation process requires a workforce that can adapt to change, ready to continuously learn and develop. These skills and capabilities are essential to integrating technology into the company's fabric, transforming processes, business models, products and communications.
5. Cloud Transformation
Cloud transformation helps organizations migrate information systems to cloud computing environments, this type of digital transformation can take different forms - for example, the company can migrate only specific applications, data or services, retain some old infrastructure, or transfer its entire infrastructure to the cloud.
The other dimension of cloud transformation is ownership - some organizations benefit from the public cloud, a third-party data center run by the cloud provider, others have created in-house cloud computing infrastructure, known as a private cloud, combining the two models to create hybrid cloud management for infrastructure.
Cloud innovation provides many benefits, including more efficient data sharing and storage, faster marketing time, greater organizational scalability and flexibility, at the same time, it raises significant regulatory challenges including governance, security and cost control.
6. Convert Domain
Transforming the field in the digital transformation world, refers to a company that uses new technology to expand its offerings, many companies often choose to grow by entering new areas, offering a broader network of services or products that don't necessarily all belong to the same market.
For example, Facebook started as a strictly social media platform, however, due to the popularity of video streaming services on demand, Facebook Watch was launched in 2017.
Organizational approaches to digital transformation
In addition to the types of digital transformation we have mentioned, important strategies and approaches for digitization have also been undertaken, including:
1. Developing a comprehensive digital strategy
This approach focuses on making the strategy as inclusive as possible from the outset, and requires a robust and robust long-term plan, the overall digital transformation strategy focuses on changing culture and implementing innovation quickly, usually a very expensive approach with many risks if a responsive internal team and/or consultant specializing in information technology is not selected.
2. Gradual delivery of digital skills
This approach focuses on delivering benefits as the company moves towards a potentially changing digital destination after defining a primary goal and path, but as the organization progresses, lessons learned and new inputs are considered, thereby changing the digital objective and sometimes the path to destination, so this approach focuses on delivering a strong and flexible strategy that can evolve with industry changes throughout its lifetime.
Digital transformation in general (although each industry has its own requirements), it explains how to integrate digital technology into all areas of business, the result is a fundamental change in how companies work and interact with customers, it is a radical rethink of how the organization uses process-compatible technology and individuals to improve performance.