What are the four main areas of digital transformation?

Digital transformation is the process by which companies incorporate digital technology into all business areas in order to drive fundamental change. It can often be the difference between a business becoming the market leader or becoming obsolete.

Digital transformation is not a single massive entity, and it can look very different for every industry. Businesses often focus on an entire organisational transformation, overlooking the fact there are four types of digital transformations. Which is limiting them from taking full advantage of all digital transformation has to offer.

The four types of digital transformation

  1. Business process transformation

Business process transformation is about using technology to reinvent business processes such as lowering costs, improving quality, or reducing timescales. It is the collaboration of your brand’s people, processes, and applications by introducing technology to transform the business processes, services, and models your company uses by leveraging the skills, successes, and opportunities of your team.

From data, analytics, APIs, and machine learning to other technologies. business process transformation can create tremendous value in a company. Many businesses have transformed their business processes by creating apps, such as Domino’s Pizza who have made is so customers can order from any device, entirely reimagining the food ordering process.

  1. Business model transformation

Business model transformation is aimed at the foundational building blocks of a business, looking at how value is delivered in a specific industry and using digital transformation to change traditional business models.

Incorporating technology because it will drive revenue and improve the customer experience, rather than implementing technology for technology’s sake. Such as how Netflix transformed from a mailbox DVD business to the streaming service it is today.

  1. Domain transformation

Domain transformation currently offers one of the most significant opportunities for company growth. It occurs when one business can slide into another area successfully.

A prominent example of how domain transformation works is the online mega-retailer, Amazon. They launched their own streaming platform (Amazon Prime), as well as Amazon Web Services (AWS), which is now the largest cloud computing/infrastructure service. A field formerly owned field by giants such as IBM and Microsoft.

Both domains were formerly dominated by major players in their respective areas, but Amazon’s financial backing enabled it to make huge headway when entering these new-to-the-company markets. AWS is a clear example of how new technologies redefine products and services, blurring industry boundaries and creating entirely new sets of non-traditional competitors.

  1. Cultural transformation

Also known as organisational transformation, cultural transformation is a redefining of organisation mindsets, processes, talent, and capabilities for the digital world.

Different people use different systems, so getting everybody on the same page and willing to accept big changes can be challenging. However, it will be worth it if your brand delivers an overall better outcome to your customers.

The most successful corporations recognise digital transformation requires a flexible workflow, a decentralised decision-making process, a bias toward testing and learning, and a greater reliance on different business ecosystems.

Which digital transformation type is suitable for you?

Digital transformation varies greatly depending on a company’s industry, specific challenges, and demands. But one constant is the more technology changes, the more companies will need to adapt.

If you think you’re ready to start your digital transformation journey, contact our expert team today, and together we can decide which approach is right for your business.

Let's start a conversation