Experts would agree that all business sectors are experiencing disruption from technological advancement, some greater than others. Advancements like Cloud Computing, Artificial Intelligence, and Data Analysis are all driving this change. Business owners often find the advancement perplexing and have no plan in place on how to go about transforming business processes for their organization.
If that's your concern, too, then in this article, we explain how you can leverage technology for your company.
Types Of Digital Transformation
All the technologies that are driving the change are collectively known as digital technologies. Hence the transformation is called digital transformation. But there are different types of digital transformation. As a business owner looking to transform your business, you must know about all the four types, which are:
1. Process Transformation
In this type of transformation, you overhaul your current processes. The aim can be to lower cost, reduce cycle times, or enhance quality, but the result remains the same. This is the most common type of transformation you can adopt for your business.
2. Business Model Transformation
This transformation refers to reinventing your business model. If your existing market gets too crowded and competitive, you have no choice left but to change your business model.
3. Domain Transformation
With domain transformation, you use digital technologies to enter new markets that support your existing business model and offerings. Think of Amazon's expansion into cloud computing when it was an online retailer.
4. Organizational Transformation
The final type of transformation is organizational transformation. It refers to bringing about changes in the mindset, process, and culture of your business. Even if you offer the same thing, you change the way it's delivered from the inside.
So with that knowledge, how do you go about transforming your business using technology? Follow the steps below.
Plan Long-Term
Irrespective of which type of transformation you're going to adopt for your business, you need to plan long-term. An article published by HBR revealed that most digital transformation projects fail because they do not make it beyond early pilot work.
That means they are successful initially but fail to scale. If you're implementing company-wide cultural changes, do not expect results instantly. The same goes for transformation to your business model.
Take Your Business To The Cloud
Cloud computing is considered the foundation of many digital transformation projects. With the advancement in both internet speed and processor power, you can process an insurmountable amount of data. The companies that leverage it to the fullest are winning. Consider the examples like Amazon, Airbnb, Uber, and Netflix. All of the companies are sitting on thousands of terabytes of data.
Another reason to invest in cloud computing is it's cheaper than ever. You can pay as you do, and there's no upfront cost barrier. So there's no reason not to invest in cloud computing.
Form Direct Relationships With Customers
An increasing count of organizations are recognizing the significance of direct-to-customer or D2C business models. By forming a direct relationship with the customer, your business can better understand their pain points and address them. The more intermediaries you'll have in your supply chain, the farther you'll be from your customers.
And the D2C model is fueled by technology too. Almost half of the world is connected to the internet with their smartphones. All of them have email accounts. So by creating a professional website, you can form a direct relationship with your customers. You can ship directly to them and get feedback for your services.
Automate As Much As Possible
Automation will impact almost all sectors in the future. You see it in manufacturing, retail warehouses, and other places. But it'll soon be omnipresent.
And as a business owner, you must look to capitalize on this. Technologies like Machine Learning, Artificial Intelligence, and Big Data are ripe. By moving or migrating your business to the cloud, you can implement these capabilities and derive the most value for yourself and your customers.
The primary benefit for most businesses is cost-savings. By automating redundant processes, you can save an ample amount of time and capital.
Adopt A Subscription Model
We're collectively moving to a subscription economy where we are subscribed to a service and pay on a monthly basis. If that sounds familiar, then it's because a growing number of companies are exploring this business model.
Starting from Amazon to Netflix to Disney, all have a subscription in place. Reportedly, even Apple is working on a similar model. Thus, you should invest in a subscription business model supported by the latest cloud technology as much as possible.
The best time for transforming business processes is now. So, you should consult with a cloud consultant and start overhauling your existing business.
