It is important to note, though, that digital transformation involves an encompassing transformation of more than one area. Focus should be granted not just to one area but to others as well. Hence, before undergoing digital transformation, companies must make sure to take into account the areas that should be covered in the digital transformation framework. Let’s look into 4 areas that should be taken into account in every digital transformation framework.

4 areas to consider in a digital transformation framework

1. Business Architecture and Model

Changing the business architecture, model, and operations through digital transformation is one reason why several companies opt to go for digital technologies. Today, this type of innovative efforts are evident in several leading companies. It ranges from streamlining video distribution to automating bookings in the taxi industry.

Aside from such cases, other industries and businesses have been revolutionized by digital transformation as well. To their very core, technology is what supports their operations and services. Through this reinvention and innovation, companies are led to more significant opportunities to grow and soar. Hence, more companies should try to tread this path as well and be sure to take into account what specific operational functions and procedures can be innovated by digital transformation.

2. Business Processes

Digital transformation in business processes involves modification of the business processes in order for the new goals to be reached and achieved. The entire process may be changed or certain steps may be modified or even removed altogether. By doing so, a company’s processes may be modernized, new technologies may be integrated, costs may be reduced, and core systems could be better incorporated.

This area is important in digital transformation because digital transformation would also affect the business workflow as well. Hence, in devising a digital transformation framework, the processes and procedures of the business must be noted as well.

3. Organization and Culture

An organization is not an organization without its people. Hence, it is important to take into account the people in the organization who would be directly affected by the digital transformation.

Success in digital transformation does not just involve upgrading the technology or modifying the operations. Organizational culture and team empowerment are vital in determining the outcome of the entire transition process. If the efforts in digital transformation fail to be aligned with the company’s values and behaviors, the team culture may be significantly impacted.

Unwanted effects such as slow adaptability to digital technologies, reduced competitiveness in the market, loss of productivity, or lower revenue may happen because of such cases. On the other side of things, having a collaborative and comprehensive effort would help the culture shift to one that embraces, understands, and adapts to the advancement of digital transformation.

Hence, in a digital transformation framework, the needs of the team must be taken into account. Practices of empowerment could be incorporated. If necessary, training for upskilling could be conducted.

4. Domain

Domain transformation takes place when a company is able to transition into another area successfully. For example, one leading company that focuses on e-commerce expanded their horizons by also offering a streaming platform and infrastructure service. These two domains were originally not ones that they specialized in. In fact, there were other leaders in such domains. However, as this company transitioned to these domains, they were able to do so successfully and become leading players in the field..

This is what domain transformation is all about. Digital transformation enables companies to not just digitize their operations but also enter different domains of market. Industry boundaries get blurred and opportunities spur even for those non-traditional game players. This enables companies to unlock a wellspring of opportunities and boost their value and competitiveness in the market.

Companies that undergo or plan to undergo digital transformation must be mindful of the emerging opportunities in domain transformation that they could grab and maximize.

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In this digital age, companies consistently evolve by undergoing digital transformation or upgrading their existing technologies to boost their competitiveness and efficiency even more. However, digital transformation is not all about embracing new technology. Thus, when devising the digital transformation framework, it is important for companies to look beyond technology in order to fully embrace true and genuine digital transformation.

ICTS Custom Software is a Vietnam-based software development boutique that focuses on cutting-edge technologies. We help SMEs (small and medium enterprises) digitize their business and handle the digital transformation in the most professional way, at a reasonable budget.

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Information sources:

https://www.poppulo.com/blog/what-are-the-4-main-areas-of-digital-transformation

https://www.demandjump.com/blog/what-are-the-4-main-areas-of-digital-transformation

https://whatis.techtarget.com/definition/business-process-transformation