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Digital transformation



Digital transformation is the process of transforming the way an organization operates in order to improve its performance. This process encompasses not only technology but also organizational, cultural, and structural transformation.

According to Boston Consulting Group, only 30% of firms successfully manage digital transformation. The digital landscape is also getting more and more intense. Consequently, establishing your digital competitive advantage will be much harder.

Digital transformation

If you are looking for transforming your business to adapt to market changes, this article is for you. Here is some general information about digital transformation and the lessons that you can apply to develop your own digitalization roadmap.


Digital transformation

Business Process Transformation

The phrase “business transformation” is relatively new as it first appeared in information technology and management consultancy areas. Generally, Business Process Transformation is the process of optimizing management processes in order to adapt to new business goals.

This kind of transformation is an essential phase in any type of business change. Using business process transformation, a company can upgrade its supply chain, save money, integrate new technology, and automate procedures. An effective way to achieve it is to divide the business model into smaller processes, and each process must be optimized to generate more value in the future.

It can be divided into 2 broad categories as followed:

  • Operational:  Changing the way business operates and making processes more efficient.
  • Strategic: Shifting the company’s concentration to a different goal.

Business Model Transformation

Digital transformation

The goal of business model transformation is to fundamentally modify how firms provide value to their customers.

Like Netflix did for its video platform. Netflix began as a mail-based rental service that specialized in selling DVDs. Netflix’s sales, however, began to decline in the 2010s. Therefore, the company chose to adjust its business model and become an internet streaming service provider. Until now, Netflix has been one of the most successful entertainment organizations, producing a vast amount of video content around the world.

Typically, changing the business model frequently need to looking beyond what is already accepted in the industry and exploring the potential of new business models. It emphasizes creativity and “thinking outside the box” in order to enhance business outcomes.

Read more: How Covid-19 Changes the Education Industry through Digital Transformation.

Business Domain Transformation

Digital transformation

Domain Transformation is a type of digital transformation that businesses consider to enter new industries. Entering a new market can provide the organization with numerous new growth opportunities while sustaining its basic market sector.

For instance, the online store Amazon developed Amazon Web Services, which is currently the largest cloud computing provider in the world. And this new domain of Amazon generates billions of dollars in sales. As can be seen, a brand-new market established by Amazon makes use of its already-existing capabilities (its sizable, technologically powerful data centers).

With the development of technologies such as artificial intelligence, new types of mobile and wearable technology, and the internet of things, domain transformation potential exists in many industries.

Cultural Transformation

Digital transformation

Based on your company’s values and organizational structure, your company’s culture should be continuously updated to meet the new demand of your people. Digital transformation is not separated from people transformation.

Business owners need to take an introspective look at your firm and implement adjustments to shape its policies, commitments, procedures, and behaviors. The new setup procedure should match your employees’ beliefs and company values. Then a successful cultural change approach will result in your employees understanding what your firm stands for, what defines it, and what differentiates it from other organizations. It creates conditions for both employees and the company to thrive in such a work environment.


Generate valuable data-based insights

Digital transformation

Going digital has several advantages, one of which is the opportunity to monitor metrics and evaluate the information gathered from digital activities. All companies need to utilize both organized and unstructured data, combining information from many business areas in the transformation process. Then, by leveraging data-driven insights to understand customers and establish development strategies, companies will gain hyper-personalization, relevancy, real-time feedback, and agility. In short, businesses can update their plans and procedures by utilizing these insights for better outcomes.

Improve Organizational Culture

Digital transformation

Cultural transformation is strongly linked to digital transformation. They are, in fact, two sides of the same coin that rely on each other to grow and thrive. Digital transformation contributes to the development of a sustained organizational culture. Furthermore, once the transformation has been conducted, organizations can take advantage of increased collaboration within departments. This results from offering the appropriate digital networks and platforms to interact with employees. When departments are linked in their goals and software, a strong working culture develops, making it easier to increase working productivity.

Prepare the organization to cope with fasten changes in the market

Once the digital transformation is done correctly, the whole organization will become flexible and actively responsive to the changes in the market and the ones of its customers. They will make data-based decisions in real-time or even predict market changes beforehand. The winner in the market will be the one who can dispose of the most data and who can extract the most insights from the data in time.


Digital transformation is not simply about technology; it also includes improving the workforce of a company. As each business’s path to digital transformation is unique, in addition, the benefits of digital transformation extend much beyond the list above.

Therefore, are you ready to begin your journey toward digital transformation? Already started but unsure what to do next?

A reliable guide is essential for any successful journey. To get started, contact our digital transformation consultant today at icts.io

Or go through our portfolio to gain more experience on success cases.


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