Digital Transformation Reflective Essay
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Digital Transformation Reflective Essay
Word Count:2086
Introduction
This essay will discuss my personal experience as well as the current trends of digital transformation which has been taking place globally.
Digital transformation is taking place all around us and there is hardly a single aspect of life that has not been affected (Reddy and Reinartz, 2017). Digitalization be defined as when a digital format is reached after analog information has been encoded, then the process is known as digitization, where the computers can store and transmit data. Digitization is applied where there is a process order, digital business surveys, or applying the digital software to declare the firm finances. This process does not change the activities of the value creation of a given firm(Davison and Tarafdar, 2018). A typical example is the development of a new procedure of communication through online means. This process assists the firms in the cost reduction as it makes communication easier, and it also helps in the product enhancement that assists the consumers. Digital transformation is when in some cases, firm develops a new business model, which may be an improvement from the old model or something fully new; this is known as digital transformation. Many companies now compete in the application of these new models, which also enhances their activities. It is implemented by the introduction of the model and to increase value. It affects the strategies used in the firm and production methods, and it changes the way of performing activities in the firm (Davison and Tarafdar, 2018).
A multidisciplinary approach to digital transformation is essential for success in its implementation. Early identification for the need to adapt for digital transformation could possibly help businesses to perform better and stay ahead of their competitors.
Reflective Discussion
My first impression on Digital transformation is that many business models created have significantly changed consumer behavior and expectations, which has resulted in increased pressure on traditional firms and numerous changes to market structures (Verhoef et al., 2021). There are multiple media channels that people in the business world can use to communicate and network with industries and competitors, increasing their visibility and connectivity in their field. Various sectors operating in the traditional ways have been surpassed by the industries which are digitalized (Lemon and Verhoef, 2016).
Alibaba could be used as a good example where the impact of digital transformation has had a massive impact, where traditional middlemen from buyers and sellers have been adapted and digitalized to such an extent that individuals and businesses are able to find and connect easily. Alibaba online retailer has given buyers and consumers an inexpensive worldwide platform which would not be possible in most traditional operating firms (Bo et al., 2015). Regardless of the digital transformation impacts and the outcomes of the digital models in the business, there has been less attention given to the new development in the digital world, and there is only a little attention being given to digitalization and digital transformation (Shehu et al., 2016). From my experience, it is vital to understand that for companies to undergo digital transformation, behavioral changes should take place from the core of a company’s structure focusing on all key components of the business models.
Let’s explore John Lewis and Debenhams, two popular UK companies with a huge consumer base. While Debenham solely depend on the traditional high street experience and failed to adopt and maximize their online retail, it has now become the victim of changing landscape of modern shopping and had to terminate their business as they were not able to sustain. On the other hand, John Lewis approach of linking Consumer,device,data and delivery by innovative digital platform helped to challenge and compete with larger online retailers and maintain its successful high street and online retailer dominant. It is essential that all companies both small and large embrace the advantage of combining brick and mortal locations and supplement them with an equally well structured digital store front to meet the needs of the modern consumer (Galbraith, 2014).
Until recently, there has been less attention to the digital transformation, only a few disciplines in the business models have focused on this issue. It has mainly developed in the areas of digital marketing and the effects of social media platforms resulting in the development of new models, which is also the area that has attracted most researchers. For digital transformations to take place in business operations, a change in corporate IT and a clear system governance is vital for its success (Law et al., 2010).
Several strategic management literatures have only focused on business models, operationalization, and conceptualization while Information system literature has also attracted scholars but mainly in the section of the practice of digital technologies and the outcome of the value of the business (Venkatraman, 2017). There has been less discussion on the multidisciplinary digital transformation.
Digital transformation is known as the employment of new technologies by a given firm to create new changes on modes of business operation and models that assist the firm in profit expansion and delivery of value to customers. The discussion on the multidisciplinary is vital because of the nature of the digital transformation, which involves the transformation of the organization, strategic changes, and application of new technology in information, marketing, and supply chains. Currently, in the world of business, managers are challenged to apply new technologies which thrive in the market and help the firms in increasing their value. Through these technological advancements, Amazon had a massive impact on consumer behavior. Through their Amazon Web Services (AWS) allowed many customers to travel the world through the comfort of our homes using their new innovation of Amazon Explore. I had to shift from the traditional database to their newly introduced cloud-native AWS. Firms now must develop new strategies, change their structures, and improve their digital trans(Reddy and Reinartz, 2017)formation resources to acquire the needed managerial guidance to achieve the digital transformation strategies (Nambisan and Nambisan, 2009).
Figure 1: Model discussion on digital transformation)
Source: Digital transformation: A multidisciplinary reflection and research agenda – Scientific Figure on ResearchGate. Available from: https://www.researchgate.net/figure/Flow-Model-for-Discussion-on-Digital-Transformation_fig1_337003569 [accessed 11 Jul, 2021](Verhoef et al., 2019)
In most businesses, it is always their main goal to maximize profit and stay ahead of their competitors. In the current climate, digital transformation methods will assist them to fulfill this ambition. This would include on how a company incorporates digital technology, people and processes which will include several models used to increase customer revenue, positive experience and expectations. Another good example of a successful digitalization in business is the Fintech Company that specialized on a technology officers, who focused their time on cyber security, software analysis and an appropriate digital proceeds strategy (Baftijari and Nakov, 2020).
If we contemplate on why there is an urge or need for transformation in the digital world we could identify a few major factors stimulating this need.
The first major driver, is the advancement of the internet and the World Wide Web in the whole world has brought many changes in the technologies, including recognition in the speech, broadband internet, smartphone introduction, developed systems of online payments, and crypto-currencies. These technologies have increased at a rapid rate and have led to a boost e-commerce development. From the start of 2017, there has been a steady increase in E-commerce globally. E-commerce has been suggested to be over $2.3 trillion in worth.
Emerging digital technologies include; robotics, artificial intelligence, the internet of things, and blockchains, have also been projected to have a significant effect on the business world (Wedel & Kannan, 2016). The entrance of the suggested digital technologies will significantly impact the firm strategies, and there is a need for transformation in the business world digitally. The proposed new technologies will also reduce the cost of firm’s structure as the labor offered by human beings will be replaced by robots or virtual agents (Wedel and Kannan, 2016).
In addition, there has also been a dramatic change in the competition sector due to the introduction of digital technologies. The competitive landscape has been disrupted in the retail industry by the introduction of these technologies. Thus, there has been a lot of hardships to the growing digital firms.
The information-rich firms all over the world are now dominating the market due to the digital transformation. The digital transformation had made consumers change their behaviors according to the digital changes taking place globally (Grönroos and Voima, 2013). A technology savvy generation in fast–paced world has also played a part. The research done on the market figures shows that more consumers are moving to make their purchases through online stores because they are well informed with social media and search engines. The online platforms also allow consumers to provide reviews after purchase which helps other consumers and also improve product and any problems. If some firms cannot afford to use the new technologies and transform, they attract fewer customers, and there are high chances that they will be replaced by other firms that adopt and use the latest technologies (Grönroos and Voima, 2013).
Digital transformation phases
With the nature of digital transformation, which is multidisciplinary and broad, the literature was reviewed to enhance the nature and understandability of the digital transformation in a firm. For those that research the digital transformation, understanding various streams of the research assists in the awakening of the research cumulativeness. While for those in the business, it is essential to bring factors such as marketing, innovation, management operations, and strategic management for proper decision making on the best technologies to apply at a given time.
Growth strategies in the digital transformation.
Digital firms have various strategies for digital growth. However, the most crucial approach incorporates the application of digital platforms. There have been impressive growth figures for the digital firms which apply digital media (Saebi et al., 2017). So many factors have led to these remarkable figures, but the significant vital aspects of this growth are network reinforcing effects and scalability. These social media platforms tend to grow very fast. They can also handle growing users, including customers, retailers, manufacturers, and suppliers, due to the low cost of additional users and at times negligible (Saebi et al., 2017).
The growth of the platforms was mainly due to the successful product introduction, and the current focus has changed from the product mindset to the platform mindset. This new shift indicates that this movement from the successful product mindset to the platform mindset enhances platform management by various stakeholders such as customers and suppliers. Ansoff matrix explains how a firm can grow by the use platform business model, which indicates strategies in the growth, which includes the development of products, penetration of the market, diversification of the market, and development of the market. This matrix indicates the growth of the revenue’s opportunities through the creation of new products and markets. Strategies of growth of Ansoff are related to the firms’ platform to measure the emerging opportunities in development.
Conclusion
In the modern world today, digital transformation is a key aspect. Technology is used in every part of the current century in all aspects of life. In the main center line of every organization, innovation through technology is vital in decision making concerning their profit maximization. Several concepts come to life when it comes to technology development continuity with several new ideas being brought from t literature, every company should focus on taking the advantages of digital technology and adapt it to their business based on their culture, customers and funds. It is essential they employ experts in digital transformation that are essential in enforcing transformation process.
As discussed above and known, digital transformation has a multidisciplinary nature, and various business models have their way of existence; each model is interdependent to the other. Research is still limited, thus, few details are found about the topic. The digital transformation has been constructive in the enhancement of how people operate in their business. The shift has created new ways and stimulated more accessible methods of transaction worldwide. It has changed the course of doing business, and soon the business world will vary due to the introduction of robots and artificial intelligence. With few disadvantages, such as fraud, many firms are thriving in the digital world. They can use new software and technologies that increase markets, thus income creation and profit expansion. In conclusion, digital transformation is relevant for future research due to its multidisciplinary nature and current development in the technologies. At the center of transformation are people that majorly focuses on interaction and not on process or technologies.
References
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