Digital transformation
Last Updated: October 5, 2022-Categories: Magazine-

Using digital solutions to transform your business.

Every enterprise is going through a massive digital transformation. In the past few years, the term digital transformation has taken over the entire world. Every company is trying to make its mark in the digital space using technologies and solutions to fulfill the needs of its customers, partners, and suppliers. Enterprises also must reimagine their existing business model to reap digital benefits. Customer expectation is changing rapidly due to the availability of a vast amount of information and dynamic demands. There is a value gap between what the customers want and what the enterprises can fulfill. Companies must work hard to close this value gap, or it creates risk for the entire business. The born-digital players are already disrupting the traditional business approach. Every enterprise must start to think like them to stay relevant or competitive. If you look at the reason behind the underlying success of these born-digital players, they can imagine their business on a platform business model. A platform business model is a radical shift from the traditional pipe business model where the operation was linear. Here the platform business engages the larger ecosystem of the customer, partners, and suppliers and can leverage the underlying value of data through digital technologies. The old ways are ending, paving the way for new business ways. Traditional enterprises must start to think like technology companies. Part of that has to be the imagination of the business by itself. It needs some critical questions to be answered, such as:

What changes and improvements in the business process must be made?

How can value be created with the help of the ecosystem by involving customers, suppliers, and partners?

What are the current technology gaps that need to be addressed to accelerate the digital processes?

Companies must be able to distinguish between digitalization and digital transformation. The two terms are often used interchangeably, but they carry different meanings when comes to shaping your digital enterprise. Digitalization is a silo approach of using digital technologies to increase productivity and efficiency of the business process without changing the existing one. While digital transformation is changing the business completely using digitalization. Digital transformation helps enterprises to become Open, Connected, Scalable, and Intelligent.

What is Digital Transformation? Digital transformation demands an overhaul of the business and the building of new and better ways of doing business. It uses the concept of digitalization to fulfill the requirements. It requires a much more concrete effort, from top management commitment to execution to the lowest of the organization pyramid.

What is Digitalization? Digitalization means improving the existing business process without changing or transforming the business completely. It helps in increasing productivity and efficiency while reducing costs.

What is the difference between Digital transformation and Digitalization?

Digital transformation means transforming a business completely. Digitalization enables it. While digitalization refers to improving the existing business without changing it completely. What is the role of technology in digital transformation?

Digital transformation leverages digital technologies, tools, processes, and people to reorganize the business. This collaborative effort is a multiyear approach, and if enterprises are serious about staying competitive, they must invest this time and energy to fix their business navigation.