Skip to content

What is digital transformation

Digital Transformation
Credits: Unsplash.

Digital transformation is the process of incorporating new technologies into the business area of the company, changing the operation and product delivery to the clients. It includes, of course, the adoption of digital tools and, more than that, the rational use of them. Using technology must bring advantages; otherwise, it does not make sense. So, in this article, we will see definitions and examples of how digital transformation helps companies to gain market share. We can say in advance that the emphasis is on the user service convenience, like Netflix, which allows for the subscriber the commodity of watching a movie where and when he wants.

A good digital transformation strategy helps to diminish the changing impacts, mainly the cultural changes, the most complicated ones. We can start the transformation by adopting a single digital resource, like automation. For example, a supermarket should invest in sales automation software. A law firm should invest in a legal solution, and the HR area certainly must use team management software.

These are the first steps, including the decision to adopt one company area to digital, convincing of the team, choose the tools, training the team, and the final step, adapting to the new reality. Companies in the advanced phase, the transformation includes data analysis, artificial intelligence (AI), cloud computing, big data, and, in some cases, Internet of Things (IoT). In this advanced scene, the company can improve or even replace a task process.

The competition goes digital

People and organizations, public or private, should get used to the digital scenario, to a greater or lesser extent. The competition goes digital, and the markets are moving fast in this direction. Even areas resistents to the adoption of digital tools are changing. Medicine, Law, and Entertainment are good examples of markets migrating to digital, and they are in the final phase of this transition.

Until recently, a law firm needed just a text editor to produce your goods, juridical documents. Today, this is not enough. Big offices, and even the Government, are using tools more and more modern to improve efficiency and time to market of new services to the clients. Medicine is using AI to help identify diseases and to suggest new treatments.

In some cases, the digitalizing paper process is already a significant improvement in agility. Here, the focus is on the Government, offering digital services or methods to improve efficiency and transparency.

Business model changes

Credits: Unsplash.

In the Entertainment area, the changes are more sensible. The business model changes radically in the Netflix and YouTube era, with a technology called streaming. Today, the user receives the content, preferably by streaming, and essential names like HBO are following that trend. Important to know that the idea is not to replace the traditional TV model, which remains still strong. Although, the entertainment companies, even the sport ones, are offering content by streaming also.

Therefore, the business models have been rethought, taking the opportunities offered by the digital transformation. That can modify and even substitute the original business model of the company. The point is to choose which parts of the business must change. A company product based can offer, additionally, a subscription service. It goes like this: instead of paying by a product, and you pay a subscription, let’s say, monthly. For example, instead of buying a music disc (product) of your preferred music band, you can subscribe to a music streaming service, which offers thousands of music discs, like Spotify or Deezer.

But it is not limited to digital services. Even, let’s say, traditional products can adhere to this business model, for example, literature. Bookstores are offering these services, like Amazon Kindle Unlimited. You pay a monthly tax and read a long list of books. And the games market, a computing area, has the subscription model also. Instead of buying a game, you pay a subscription and have access to a wide variety of games. It is a win-win game: the game creator company, the console creator company, and the player.


To each company, the digital transformation will be different. There is the option of transforming products in services, getting in the subscription economy, like the examples above. And there is the alternative of creating new products and services. As a result, digital transformation enables new business opportunities, like Uber Eats. A company that does not make food but allows a small local cafe to raise the client scale, not limiting to your physical space. Again, the focus is client convenience, which receives the product in her house.


Leave a Reply

Your email address will not be published. Required fields are marked *