Due to growing digital technology, many firms are under pressure to change in order to fulfil customer needs and compete. Digital transformation is a buzzword that is commonly heard when a combination of digital technology is applied. There has been very little academic research on digital technology to date and they frequently yield non-deterministic, comprehensive definitions. In addition, there is literature that delves into certain elements or industries are addressed by delving further into the underlying technology and consequences.
This gap is filled by doing a literature review and administering a business model-based questionnaire to IT consultants in order to assess both the concept and expected consequences of digital transformation. If a technology-induced shift, such as social, mobile, analytics, or cloud technologies, significantly impacts at least three out of seven dimensions on a person, corporate, or social level, we call it digital transformation.
The findings of the study demonstrate that digital transformation is predicted to affect companies in a variety of ways, as practically all business model structures are expected to change somewhat or even significantly. The most significant influence will be on firms’ value propositions, client categories they can identify and service, how they reach out to customers, and the resources they use.
Information, communication and connectivity technologies have improved greatly during the last decade creating new functionalities (Bharadwaj, Sawy, Pavlou, &Venkatraman, 2013).
Companies like Google, Netflix, Amazon, and Apple have climbed to great heights as a result of their successful adoption of new digital technology, whereas others have failed to do so and have become outdated. Many businesses are under pressure to change in order to meet customer demands and compete with digital technology (Westerman, Calmejane, & Bonnet, 2011).
The term “digital transformation” is often used to describe these shifts. While there are a few consultancy-related studies, such as Fitzgerald et al. (2013) and Westerman et al. (2011), that underline the importance and possible benefits of digital transformation, there is relatively little true scholarly literature on the subject.
Some claim that social, mobile, analytics, and cloud are the underlying fundamental technologies (Bharadwaj et al., 2013), however most propose holistic nondeterministic definitions.
Although there are studies that detail the organisational effects of social, mobile, analytics, and cloud technologies in isolation, there are few studies that examine the consequences from a digital transformation viewpoint, that is, when those technologies are used together.
To define the concept and formulate the hypothesised effects, the concept of digital transformation has to be articulated first. This was accomplished by conducting a literature review based on relevant academic literature, which provided a thorough summary of the present state of knowledge. In order to do so, papers from MISQ and ISR from 2010 were scanned for relevance to digital transformation. The papers from MISQ and ISR were chosen because they are well-known in the subject of information systems. Because little study on digital transformation had been done previous to 2010, the year 2010 was chosen as the cut-off point.
Furthermore, relevant publications were discovered using the search terms digital transformation, digital technologies, digitalization, digital business, digital enterprise, social, mobile, analytics, and cloud in literature search engines such as Google Scholar and Scopus. Finally, by looking through the references of other related research, the “snowball” method was employed to locate eligible academic sources.
The second step was to create a framework for measuring business models in order to assess the true effects of digital transformation. There are four types of businesses. VISOR, C-SOFT, and the business model frameworks. The canvas model and the entrepreneur’s model) were created which the business model canvas of was evaluated. Osterwalder and Pigneur (2010) were chosen for further investigation operationalization is sector agnostic and has a wide range of applications. Building blocks that are more distinct and obvious. The structure Measures were created after the blocks were operationalized. Based on business model literature from a variety of sources Burkhart, Krumeich, Werth, and others have done relevant meta-studies. Dmitriev, Simmons, and Truong, 2014; Loos, 2011; Dmitriev, Simmons, and Truong, 2014;Shafer, Smith, &Osterwalder, 2005; Osterwalder, Pigneur, &Tucci, 2005; Osterwalder, Pigneur, &Tucci, 2005; Osterwalder, Pigneur, Linder, 2005) and the foundation for process classification(According to the APQC, 2015).
The concept of Digital Transformation
Patel and McCarthy (2000) were among the first to mention the term “digital transformation,” albeit they did not go so far as to define it. Only until now only a few research offer a definition of the term.
Digital transformation is defined by Westerman et al. (2011, p. 5) of Capgemini as “the use of technology to fundamentally increase the performance or reach of organisations.” Stolterman and Croon Forst (2006, p. 689) define digital transformation as “the changes that digital technology produces or impacts in all facets of human life.” Digital transformation, according to Lankshear and Knobel (2008), is the highest level of digital literacy. Digital technologies enable innovation and creativity at this level, as well as significant changes in professional and knowledge fields.
These definitions are broad in scope and do not segment digital transformation into specific technologies or developments. One thing that becomes clear is that digital transformation does not imply incremental adjustments, but rather fundamental “radical” transformations as a result of digital technologies.
Lucas et al. (2013) classified technology-induced changes as transformational when they impacted at least three out of seven dimensions on an individual, corporate, or societal level over the provided threshold.
From a technology standpoint, we’re at the crossroads of a new wave in IT: social, mobile, analytics, and cloud, as measured by the number of connected devices (Frank, Roehrig, &Pring, 2014). These are the underlying technologies of digital transformation, and they drive current corporate breakthroughs (AlDebei & Fitzgerald, 2010; Bharadwaj et al., 2013).
As a result, we refer to digital transformation as a social, mobile, analytics, or cloud-induced shift that has a major impact on three or more dimensions on an individual, corporate, or societal level.
Customer demand and behaviour have changed as a result of digital technologies, which is an important part of digital transformation. Digital technologies are becoming more ingrained in our daily life, according to several studies (Aral, Dellarocas, &Godes, 2013; Oestreicher-Singer &Zalmanson, 2013).
As a result, we are increasingly interacting with and experiencing the environment through information technology (2006, p. 690).
This resulted in greater customer awareness (Hennig-Thurau et al., 2010; Smith &McKeen, 2008), altered buying decisions (Clemons, 2008; Kauffman et al., 2010), and the ability to review products and services online (Hennig-Thurau et al., 2010).
Information is no longer entirely controlled by organisations; instead, democratisation of content is occurring through social media reviews and blogs (Aral et al., 2013; Clemons, 2008), and it is becoming increasingly significant (Zhu & Zhang, 2010).
Consumers also want (digital) items to be easy to use (Smith &McKeen, 2008; Yoo, 2010) and to be available 24/7 (Andal-Ancion, Cartwight, & Yip, 2003; Weill &Woerner, 2013).
Organizations must react, and they are; goods are vastly improving (Fitzgerald et al., 2013; Li, 2015) and becoming more accessible.
Organizations gain a greater understanding of their customers (Li, 2015) and build new sorts of customer interactions (Kurniawati, Shanks, &Bekmamedova, 2013; Westerman et al., 2011).
Organizations create new revenue models (Granados & Gupta, 2013; Li, 2015) and modify their internal processes, resources, and expenses accordingly (Agarwal &Dhar, 2014; Bharadwaj et al., 2013; Markus &Loebbecke, 2013; Westerman et al., 2011; Westerman et al., 2011).
In addition to internal adjustments, new interfaces enable increased supply chain tightness and new ways for rivals, vendors, and suppliers to collaborate (Bharadwaj et al., 2013; Li, 2015)
Top digital transformation trends in 2022
1. The explosion of Customer Data Platforms (CDP) Data is collected everywhere in the online age.
Companies now have more data about their customers than they ever have before. You’re getting a lot of information from them, whether they’re interacting with your organisation or buying one of your products or services. This applies to both small and large companies. The only difference is how this information is used to gain a better understanding of client behaviour and preferences. For smaller businesses with a limited marketing stack, this would not be an issue. Extracting information from such a large pool of data can be tough for organisations with a diverse range of products, marketing methods, and customers. This is where the consumer data platform comes in handy. A customer data platform (CDP) is a single source of customer data that you may utilise to personalise and engage your customers’ marketing campaigns. At first glance, CDPs appear to be only for the marketing department, however this is not the case. Finance and IT teams can use CDPs to make swift decisions on services, goods, and other firm investments.
2. Refocus on cybersecurity
Have you ever had to change your password? I’m sure you did.
A few years ago, the digital transformation was conceived as a new way to process and product shopware development.
Companies began fast-tracking initiatives like DevOps as part of their faster go-to-market strategy. Security was one element that was forgotten at the time. According to Gartner, 60 percent of digital firms will encounter catastrophic service failures by 2020 as a result of security teams’ incapacity to handle digital risk.
3. Multi-cloud architecture
A multi-cloud architecture refers to the use of one or two private or public clouds to distribute software and workloads within an enterprise.
The COVID-19 crisis has also pushed for multi-cloud architecture adoption to alleviate business continuity risks. This is owing to businesses’ demand for simpler solutions to handle the modern working model, which places a larger focus on remote work and security.
Disaster recovery, data residency requirements, and resilience are all reasons for using a multi-cloud architecture.
4. Democratization of AI
The democratisation of AI has the ability to drive digital transformation within a company, making it one of the top digital transformation themes for 2021.
To put it another way, democratising AI is making it available to every company and, ideally, every individual within that company.
This entails employing artificial intelligence (AI)-based tools to detect and understand trends, make decisions, forecast, learn, and improve.
AI will be incorporated into the systems and procedures of every firm, from tech-savvy startups to major companies.
5. Contactless solutions and digital payments
The rise of no-touch solutions, as well as contactless dining and digital payments, are among the digital transformation themes to watch this year.
As a result of COVID-19-induced social distance norms, restaurants and cafés are creating contactless ways to take consumer orders. This includes both online and in-person ordering of food for delivery or takeaway.
In-seat ordering refers to a method in which consumers can buy meals from their seats using a smartphone app or a QR code, rather than standing in lines or missing the show, in theatres and convention centres.
6. Automation
Automation and digital transformation frequently coexist. The fundamental reason for this is because when one is adopted, the other is automatically adopted as well.
By automating more of their operations, businesses will accelerate the pace of digital change within their enterprises. The method is automation, but the final consequence is digital transformation.
Another reason why firms will place a larger emphasis on automation than ever before is COVID-19. Those working in manufacturing and related industries, in particular.
To keep their firms solvent and commercial operations running efficiently, business leaders will now need to implement automation methods.
Conclusion
It’s not as simple as picking a piece of technology and putting it to work. After that, you must concentrate on changing the perspective of individuals involved, particularly employees. They’ll assist you in accomplishing your digital transformation objectives.
It’s also crucial to stay on top of the most recent digital transformation trends, such as the ones we’ve covered in this article.
Author Bio
Ronak Meghani is a serial entrepreneur & eCommerce Consultant who has worked with small-medium-large companies. He is a co-founder of Magneto IT Solutions and has been closely working with eCommerce ventures since 2010. He has helped 200-plus international brands for building/improving their online ventures in the area of UI/UX, development, launching, revenue enhancement, marketing strategy, magento development, eCommerce support and much more, and 90% ventures are generating very good revenue. He’s enthusiastic about start-ups, entrepreneurship, sports, home decor ecommerce, automotive ecommerce, gems & jewellery ecommerce, electronics ecommerce and all things marketing
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