Digital transformation has been taking over the world in a storm for a couple of years already. But did you know it has four types?
If you plan on doing a digital transformation (Dx), then it is vital to know all these four. Why?
Because there is a 70% failure rate for companies doing the journey. And one reason for that is that they fail to know and do all types of transformation.
Of course, you want to avoid that right? So, what are the four types of Dx?
Read on to know more.
The 4 Types of Digital Transformation
Process Transformation
Process transformation. This is where you will make changes and enhance your company’s processes.
Most companies today only focus on this type of transformation. And they do it by using:
- data
- analytics
- artificial intelligence (AI)
- machine learning
- APIs
- and more
Further, the goal of process transformation is to:
- lessen cycle times
- lower costs
- enhance quality
Then, it can happen in areas like:
- shop floors
- back office
- customer experience
So, in this type, you can enhance the way you sell your products and services. As well as how the customers buy them. Or how your back office does their tasks.
Business Model Transformation
What is business model transformation? This is where you will need to use digital techs to change your old business models.
So, you will need to focus on your company’s foundation and see how you give value to your sector. Further, you can see more room for growth if you change your foundation.
One good example is insurance companies. Today, some of them are now using data and analytics.
So, they now separate and offer insurance contracts by the mile. As a result, it attracted new customers.
Domain Transformation
Only a few companies focus on domain transformation. But you should not miss this type as it offers a lot of opportunities.
For one, digital techs today are changing how companies offer products and services. Thus, the lines between sectors are now blurring. Also, new kinds of non-traditional rivals arise.
So, new techs can let you unlock new kinds of businesses beyond what you already offer. When doing so, you can get the help of:
- AI
- machine learning
- augmented reality (AR)
- Internet of Things (IoT)
Cultural Transformation
Many companies ignore or do cultural transformation very quickly. But it is a long-term process. This is where digital changes happen in areas like:
- capabilities
- talent
- mindsets
- processes
So, to succeed in this area, you will need to drive a digital culture. Then, you will need to fill the digital skills needed in your company.
May it be hiring new people or upskilling the workers you already have. Further, you will need to make a culture of innovation by training your workers regularly.
