4 Ways Digital Transformation Can Impact Your Company

In our previous blog, “What Is Digital Transformation?” We discussed what digital transformation is and how it can improve your company’s processes and systems to deliver better customer and employee experiences, increase company competitiveness, and reduce costs. This blog will go more in-depth and explore four ways your company can incorporate digital transformation into its daily operations to reach these business goals. Keep reading below to find out more!

What Are The Four Types Of Digital Transformation?

According to Andrew Annacone, the managing partner at TechNexus Venture Collaborative, the four types of digital transformation include “business process, business model, domain, and cultural/organizational.” Different factors, such as technology, data, and organizational change capability come into play within these four areas and affect how these four digital transformation areas impact your company.

Below we break down these four types and explain how the factors listed above play a role in this process.

Business Process Transformation examines the steps required to complete a process to remove repetitive steps and automate as many actions as possible. Ways of automating as many steps as possible include incorporating RPA, data analytics, APIs, AI, cloud-native computing, IoT, machine learning, and other technologies.

By incorporating these technologies to transform the business processes, your company can improve customer engagement, improve customer and employee satisfaction, and reduce costs. Examples of things that can be automated within your company include invoice processing, systems queries, employee on-boarding, etc.

Business Model Transformation is the process of evaluating a business’s continued viability and competitiveness by reviewing its revenue sources, customer base, products, and financial details – and then identifying specific digital transformation goals.

Different ways digital technologies can achieve this type of transformation include creating a new business model that refreshes the customer experience, improves products or services, and inspires your employees to increase their productivity and output. For example, Siemens underwent a business model transformation in 2014 after evaluating their financial details, leading them to switch from maximizing shareholder value to a mission of “serving society,” according to their site. To achieve this, they launched a plan called Vision 2020, which calls for harnessing digital technologies such as AI and the Internet of Things to set a course for long-term value creation through accelerated growth, improved customer experiences, and societal engagement.

Domain Transformation is when new technologies are used to reimagine and redefine products and services to unlock new business opportunities for companies, allowing them to reach beyond currently served markets. Some of the technologies being used to open these new business domains include artificial intelligence, machine learning, the internet of things (IoT), augmented reality, etc.

An example of this can be seen through Amazon’s expansion into a new market domain with the launch of Amazon Web Services (AWS) a few years ago. What made this transformation possible was combining the strong digital capabilities it had built-in storage and computing databases to support its core retail business, coupled with an installed base of thousands of relationships with young, growing companies that increasingly needed computing services to grow. Through this domain transformation, Amazon has been able to reimagine its services to unlock new business opportunities.

Cultural/Organizational Transformation is a shift that can occur throughout an organization, individual departments, or teams by creating agile workflows, a bias toward continuous testing and learning, decentralized decision-making, and a greater reliance on business ecosystems.

Examples of this type of transformation include incorporating collaboration into a company’s workflow by driving a fundamental shift in employee attitudes. To achieve this, your company can enable two-way communications and feedback channels to reinforce these concepts and provide continuous learning and training among your employees.

The Potential Results Of Leveraging Digital Transformation

By focusing on these different areas within your company, you can isolate the areas that need the most improvement and develop a plan to address them using digital transformation initiatives. By utilizing different forms of technology such as artificial intelligence, machine learning, the internet of things (IoT), augmented reality, data analytics, APIs, AI, RPA, and cloud-native computing, different types of digital transformation initiatives listed above can be implemented to achieve specific business goals.

See how Boston Technology Corporation can help your company incorporate digital transformation initiatives into your business operations today by clicking here!