So, what is digital transformation and why does it keep popping up more frequently? It is the latest buzz word to kick around, but sometimes I have found that people aren’t entirely sure what it means – for themselves as a consumer, or to their business – and why it should be a priority on the C-level agenda. Being in the tech industry, we sometimes forget that not everyone knows what we are talking about, especially when we start using the Microsoft acronyms (and I even have a mini dictionary for all of those, photo below, and frequently put my hand up when I don’t know what they are talking about). The below is an introduction and then we can get into it more and break down the different ways a business can transform.
Microsoft Acronym Dictionary courtesy of
What is Digital?
It is about using technology in order to engage with customers in a new way. It is about connecting people, devices, objects, data and technology and represents an entirely new way of doing business.
What is Transformation?
In the business context, a transformation is the process of a profound and radical change that takes the business in a new direction and to a different level of effectiveness.
What is Digital Transformation?
Together, Digital Transformation describes how a company embraces technology in order to meet rising customer expectations, in order to remain competitive and to drive revenue growth.
Over the last few years, digital has been radically changing how business gets done. Companies are innovating with crowdsourcing and data. They are working smarter with smart machines. They are using analytics to anticipate what is coming next and taking appropriate actions, and they are giving their customers better and richer experiences. As we take on new technology, learn new skills, join new companies, interact with brands, we have slowly started blurring together our digital and physical worlds.
Digital disruption is the change or transformation that is caused by emerging technologies and business models that essentially affect the business value proposition of existing goods and services. At the end of the day, it is simply about how you can do something better, to create a better customer experience, better customer value, and make the customer pay for it. If someone isn’t going to pay for it, then it is useless.
Now – how do you go about transforming or disrupting your own business? There are a few ways to do this, which I will go into, in a separate blog. To give you something to think about first – think about how you navigate around town in your car (or walking, or getting public transport) now, compared to 10 years ago. Do you use a printed map book, did you buy a Garmin navigation device that sits on your dashboard, or do you use your mobile phone?
When you are looking to buy a new HD TV, do you walk into the store first, and ask the salesman what he thinks is best? Or do you read reviews online, ask your peers on Facebook and do a price check on various online retail stores?
When you book a hotel for an overseas trip, do you go directly to the hotel chain website to check out availability, or do you go to a site like TripAdvisor or Hotels.com where you can see best price, availability, discounts, reviews, photos and things to do, all in one place? Do you even want to go to a hotel anymore and prefer to book via AirBnB?
When you book a taxi, do you want to phone the company, tell them where you are and wait 30 minutes to be picked up, or would you prefer to open an app on your phone like Uber, book the closest driver and type of car and know exactly when they will be arriving, their name and registration plate the cost of the trip?
Do you use SMS messaging, or WhatsApp and do you often wonder, like me, why we still get 500 SMS’s free with our phone package?
All of the above are examples of digital disruption in the market place, and it is affecting every industry. From a PWC CEO Survey, across all industries, it stood out as the CEO’s number one priority.
The successful companies and ones leading the way are incorporating digital into their business strategies. They are recreating a digital business strategy. They are not just simply adding on digital as an afterthought, or creating a digital department that does some cool new things. Digital is a driving force in determining their business model, their products, their service, their processes and for it to work, it needs to be adopted company wide, department wide and employee wide, in order for these companies to survive and to transform successfully.
Karabina helps companies to transform using technology, and the Microsoft platforms.to discuss how we can help you start your journey to a true digital business.