As digital technologies evolve, so do the ways organizations use them to improve business operations and customer relationships. The focus of a digital transformation process can range from refining internal processes, to expanding into new markets or even overhauling an entire business model. The most successful digitization projects are built on a solid foundation and set up to adapt and grow.
The most common drivers of digitization initiatives are to improve business outcomes and enhance customer experiences. Uber, Airbnb and Netflix all reimagined their businesses around this principle. They used mobile and cloud technology to reimagine the way customers engage with their products. During the COVID-19 pandemic, they also introduced new technologies to support remote and hybrid work.
Regardless of the industry or business, the common thread for all digital transformations is an operating model that supports rapid and scalable growth. This operating model must be based on the right data and insights to provide a strong competitive advantage, drive operational efficiency and ensure sustainable, measurable value creation.
Many businesses choose to undertake domain transformation when they seek to enter a new market, industry or service domain. This can happen for a variety of reasons, including the need to meet changing consumer expectations, boost flagging sales or differentiate in a highly competitive market.
During this stage, companies develop new products or services that target a specific segment of the market. This is often done through innovation labs or pilot programs that collect and analyze data to assess the viability of potential new offerings. Ideally, these tests are conducted in partnership with end users to ensure that the solution provides value and meets needs.