Digital Transformation Foundation

Digital transformation is the integration of digital technology into all areas of business, fundamentally changing how you operate your business and also gives values to your cherished customers. It can be said that its a cultural change that requires organizations to continually challenges the status quo, experiment and be prepared to received any outcome. A digital initiative can contain many different aspects. At one extreme, it can involve reinventing all facet of the organization, including supply chain, workflows, employee skill set, the product it self, how customers interact with the organization, and organization structure. More limited initiative can involve adopting digital technology to improve a specific business process, or service, reduce costs, or solve a specific business problem.

Business model transformation is key, this type of transformation changes business models to adapt them to the new digital environment. This requires careful consideration of how the core business of the industry operates. A successful change can disrupt an entire industry- like Netflix did for home videos and Amazon for retail. Digital transformation has a cultural component, which is critical to the success of any digital transformation initiative. For example many organizations, this transition can be challenging. Digital transformation must start with education for existing staff, to ensure everyone understands the potential of new technology for improving the business, forging internal collaboration, and creating new methods for engaging customers. There are multiple common barriers that digital transformation initiatives, projects and strategies face. One of the main barriers is change management because changes in processes may face active resistance from workers. Related to change management is the miscommunication between workers which can lead to integration due to a too optimistic view of the process. Companies may have legal systems in place which can lead to integration difficulties with new systems. Digital transformation is currently creating opportunities for business leverage.