If you want to stay in business, you must learn to keep up with the changes. Adapting to changes in technology can help you stay afloat against the competition.
The theory of evolution affirmed in time that life is about the survival of the fittest. But, the world we live in today is the one that responds quite a bit to change, it is the one that survives the competition. This fact is quite true in the case of digital transformation. So what are the key areas you need to focus on when it comes to digital transformation?
What is digital transformation?
Before we can move on to a discussion on the key areas of digital transformation, we will try to understand what this transformation is all about. This additional knowledge can help you understand the concept of best-of-the-art features.
Digital transformation refers to the integration of digital technology in almost all areas of a business brand. However, by definition, Digital Transformation is the approach by which companies drive changes in their business models and ecosystems by leveraging digital competencies. Digital technology will be used primarily to streamline your internal operations, improve communication within the organization, and of course create products and services that your customers expect.
What are the four main areas of digital transformation?
Well, understanding the key areas in terms of digital transformation can be a complicated and difficult task in itself. There are different scenarios for the main focus areas raised by different organizations and analysts. Almost all key areas point to better integration of the transition structure, customers, products (or services), and operations within the organization. The difference lies in the handling of the different parameters.
Area 1 – The business process
This area will include and involve the collaboration of different aspects within your organization. You will need to improve collaboration between people, processes, and applications within your organization. You will need to make use of the processes, services and models so that you can improve the skills and opportunities within your organization. Applying digital technologies to all functional areas within your organization will improve performance.
Area 2 – The business model
The second important area is the implementation of digital technologies in the business model. However, instead of implementing the new technology just to implement it, it might be worth focusing on improving revenue and improving the customer experience. There are several industries and businesses that have developed steadily. You can take a look at some of the industries, like Sony, that diversified from an electronics industry to the entertainment industry.
Area 3 – Domain Transformations
Domain transformation refers to business diversification. The example above where we cited Sony should also be applicable in this context. Another example of this type of technical transformation may include Microsoft, which has branched out into several areas, such as cloud storage. Amazon developing a streaming service alongside a cloud computing service can be one of the practical solutions that can be quite effective and efficient in their own right.
Area 4 – Cultural approach
Your organization and its employees may be from different backgrounds. Getting everyone on the same page can be a very challenging experience. Transformation across organizational and cultural regions can be effective in providing a higher degree of efficiency to your customers. This will help employees to have the right mindsets, attitudes, and behaviors to handle customer preferences.
What are the other areas of digital transformation?
There are different schools of thought that have been proposed to define the different areas of the concept.
Microsoft specifies the top four areas for digital transformation based on thoughts presented by Microsoft CEO Satya Nadella:
- Empower your employees – Improving employee motivation and skills can be a great option for a high-level digital transformation.
- Involve your customers – The company must be able to effectively satisfy customers and apply the appropriate degree of techniques to meet changing customer expectations.
- Optimized operations – The application of the appropriate techniques in your organizational structure can help improve the efficiency of your organization and improve productivity.
- Better services and products – Effective transformation options applied to production techniques can be effective in improving your market position and staying relevant to the market.
Final thoughts
In essence, digital transformation will involve focusing on the key areas you want to work on. When you move towards applying the correct techniques in your organization, the areas you need to focus on should be relevant to the problem you want to solve.
Pick the right areas based on what your organization is lacking or what your organization wants to improve. Once this is done, you can focus on the key areas that are relevant to that area.
