What Are the 4 Main Areas of Digital Transformation?

If you want to stay in business, you need to learn keeping up with the changes. Adapting yourselves to the changes in technology can help you stay afloat against the competition.

Theory of evolution stated back in time that life is all about the survival of the fittest. But, the world that we are living in today it is the one who is quite responsive to the change is the one who survives the competition. This fact holds quite true in the case of digital transformation. So, what are the key areas you need to focus on when it comes to the digital transformation?

What is Digital Transformation?

Before we can move into a discussion into the key areas of digital transformation, we will try to understand what is this transformat is all about. This added knowledge can help you understand the concept of the best features of technique.

Digital Transformation refers to the integration of digital technology in almost all areas of a brand’s business. By definition, however, Digital Transformation is the approach by which enterprises drive changes in their business models and ecosystems by leveraging digital competencies. The digital technology will primarily be used for optimising your internal operations, improving the communication within the organisation and of course, coming up with products and services that your customers are looking ahead to.

What are the four main areas of Digital Transformation?

Well, understanding the key areas in terms of digital transformation can be a cumbersome and tough task in itself. There are different scenarios for the main areas of focus put forward by different organisations and analysts. Almost all the key areas point to the better integration of the transitional structure, customers, products (or services) and operations within the organisation. The difference lies in handling the different parameters.

Area 1 – The Business Process

This area will include and involve the collaboration of different aspect within your organisation. You will need to improve collaboration between the people, processes and applications within your organisation. You will need to make use of the processes, services and models so that you can improve the skills and opportunities within your organisation. Applying digital technologies to all the functional areas within your organisation will improve the performance.

Area 2 – The Business Model

The second important area is to implement digital technologies in the business model. However, rather than implementing the new technology just for the sake of implementing them, it would be worthwhile to focus on improving revenue and enhancing the customer experience. Thee are several industries and businesses that have developed consistently. You may have a look at some of the industries such as Sony which diversified from an electronics industry into the entertainment industry.

Area 3 – Domain Transformations

Domain transformation refers to the diversification of business. The above example where we cite Sony above should be applicable in this context as well. Another example of this type of transformation technique can include Microsoft, which diversified into several areas, such as cloud storage. Amazon developing a streaming service along with a cloud computing service can be one of the practical solutions that can be quite effective and efficient in its own right.

Area 4 – Cultural Focus

Your organisation and the employees thereof can be from different backgrounds. Getting everyone on the same page can be a very challenging experience. The transformation in the cultural and organisational regions can prove to be effective in providing a better degree of efficiency for your customers. This will help the employees have proper mindsets, attitudes, and behaviours for handling customer preferences.

What are the other areas of Digital Transformation?

There are different schools of thought that have been put forward to define the different areas of the concept.

Microsoft specifies the four main areas for the digital transformation as per thoughts put forward by Microsoft CEO Satya Nadella –

Empowering your employees – Improving employee motivation and skills can be a great option for a high-end digital transformation.
Engage your customers – The business should be capable of the efficient satisfaction of the customers and apply the right degree of techniques to meet the changing expectations of the customers.
Optimised operations – Application of the right techniques in your organisational structure can help enhance the efficiency of your organisation and improving productivity.
Better services and products – An effective transformation options applied to the production techniques can be effective in improving your market position and staying relevant to the market.
The Closing Thoughts
In essence, the digital transformation will involve focussing on the key areas that you want to work on. When you move ahead to apply the right techniques in your organisation, the areas that you need to focus on should be relevant to the problem you want to solve.

Pick the right areas based on what your organisation lacks in or what your organisation wants to improve upon. Once that done, you can focus on the key areas that is relevant to that area.

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