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The four types of digital transformation

We’re hearing more and more about digital transformation; the buzzword of the last decade. Leading organisations, and organisations in general are motivated to blend digital and physical processes with customer experience is apparent. How digital transformation is implemented may depend on the industry; but all leaders share the common goal in driving change in their company’s go-to market strategy.

As mentioned, digital transformation will be effective will be based on the business and industry they operate in; it is not guaranteed that one particular strategy will fit all businesses. Leaders will have to take into account the different types of digital transformation before assessing their next steps.

Process Transformation

By assessing internal processes, organisations are able to implement digital processes to lower costs, improve quality and reduce cycle times. For example, by adopting robotic process automation, businesses are able to transform manual tasks in procurement and other administrative functions, making the process more smooth and efficient. This also reduces the chances of human error.

Organisations that take advantage of processes such as machine learning and artificial intelligence helps to recognise and shape data patterns into actionable insights.

Business Model Transformation

Ultimately, business model transformation aims to change the way companies deliver value to their customers. This would have been the case the last two years as the way business was carried out would have been very different due to Covid-19. Most businesses took a digital approach or utilised automation to limit human contact.

A notable example of business model transformation would be Netflix making the switch from posting DVDs to offering an online streaming service. A company such as Blockbuster were not able to make such a transition in their service, which ultimately led to their demise.

It’s a key time for organisations to support their customers’ digital transformation efforts by reshaping their go-to marketing strategy. It’s common to identify when consumers are ready for a different type of experience/relationship by their spending patterns.

Domain Transformation

Organisations will adopt new technologies to redefine their products and services. With this, they may extend current services to a new customer base or develop new technology. For example, a business which offers equipment on a rental basis rather than purchase-only, enables them to reach a previously unserved segment of customers who may only need your technology temporarily. This increases loyalty and sees customers returning.

Cultural/Organisational Transformation

By embracing a digital-first culture, this allows organisations to adopt agile workflows and support decentralized decision-making. A successful transition into a digital-first culture requires redefining mindsets and processes while also including new talents and capabilities. A typical mindset shift changes the focus from changing the production output, to focusing on customer service and innovation.

When opting for a cultural shift, this occurs organically during other transformation initiatives

as internal teams take on digital workflows and recognise the power of changing organisational norms.


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