Why Digital Strategy for Business is a Must Today?

What is digital transformation?

Digital transformation is the process of integrating digital technologies to create a new business model or modify existing business processes to meet changing business requirements. Digital business transformation is also a cultural change that enables an organization to challenge the status quo, experiment, and accept failure as well.

While digital transformation may involve many technologies, the hottest topics currently are cloud computing, big data, the Internet of Things (IoT), and Artificial Intelligence (AI). Many companies have already started to transform digitally and by 2023, it is estimated that such organizations will contribute to more than half of global GDP.

According to research published by IDC, despite the COVID-19 outbreak, the global spending on digital transformation technologies and services is slated to grow from 10.4% in 2020 to $1.3 trillion. In fact, the pandemic has compelled businesses to increase operational efficiency and improve customer experience. Both of these aspects are not just major goals of the digital transformation of business but also deciding factors that influence a company’s fate during an economic slowdown.

In general, digital transformation is not just about disruption or technology and not even about transforming for a digital age. In this guide, we help you understand the essence of digital transformation for business and why you should implement it.

What is digital disruption?

In simple terms, digital disruption is nothing but transformation due to emerging digital technologies and business models. This can cause a significant change in customer behavior and market context, requiring the need for re-evaluation.

Consider these examples of digital disruption:

Both digital disruption and digital transformation present immense opportunities for businesses to gain a competitive advantage.

Causes of disruption and digital transformation

Digital business transformation is more impactful than ever before. Again, it is important to remember that neither does technology drive disruption nor does it cause transformation. It depends on how digital technology in business is used and adopted by partners, customers, competitors, and stakeholders. These technologies primarily include Artificial Intelligence, IoT, virtual and augmented reality, edge computing, and blockchain.

The demand for customers’ convenience and simplicity in dealing with businesses is not a new concept. It existed even before the internet era. It will not be wrong to add that transformation is simply catching up. Customer behavior and needs are also affected by disruptions at the societal level.