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Embracing Digital Technologies

Digital transformation refers to the changes associated with the application of digital technology. Digital transformation may be thought as the third stage of embracing digital technologies : digital competence → digital usage → digital transformation, with usage and transformative ability informing digital literacy.

The transformation stage means that digital usages inherently enable new types of innovation and creativity in a particular domain, rather than simply enhance and support the traditional methods.In a narrower sense, “digital transformations ” may refer to the concept of “going paperless”.

Digital transformation affects both individual businesses and whole segments of the society, such as government, mass communications, art, medicine or science..

Industry Structures

Digital transformation has become the ultimate challenge in change management because it impacts not only industry structures and strategic positioning but all levels of an organization (every task, activity, process) and its extended supply chain.

Leaders must constantly challenge their organizations to ensure that this technology-enabled change can unlock productivity gains and significant competitive advantage and understand where and how the fundamentals of their current operations could be unsettled by agile new entrants or new business models.

Key Drivers Of Digital Transformation

There are three key drivers of transformation: changing consumer demand, changing technology and changing competition. These, of course, are an ecosystem and it is always a convergence of factors that brings about changes in a market.

When any of these factors coincide such that a business’ operating model is no longer fit to serve its customers, the business has reached a tipping point. Here’s the thing – evolving businesses don’t reach tipping points! They spot opportunities before they become tipping points. Evolving businesses are continually focused on their customers, changing and adapting with, or leading in their market.

Businesses that spot tipping points when they are too late to be considered opportunities need to transform, and those that don’t, tip over the edge. Consider HMV as a case in point.

Clearly none of this is new. There are well-used models to understand these market phenomena; Porter’s five forces, McKinney 7S and the Boston matrix, for example.

About Ismile Technologies

Ismile Technologies is a global IT services company that specializes in designing, implementing, and managing systems that directly contribute to revenue and business success. We help companies adopt disruptive technologies to advance innovation and increase agility. Our highly skilled technical teams work as an integrated extension of our clients’ organizations to deliver continuous transformation and uninterrupted operational excellence.

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