What is Digital Transformation?

In the digital world, your ability to adapt to change will determine your ranking in the competitive market. In terms of flexibility and accessibility, a digitally powered platform is second to none. Maybe that is the reason why there is a sudden boost in digital transformation companies.

You might confuse digitalization with digital transformation but digital transformation is far ahead of digitalization. It can transform the complete business processes on which the company is operating.

Digital transformation is a broad topic that has numerous elements to it. This article will cover all those aspects for you. By the time you finish this article, you will understand the definition, processing, and importance of a digital transformation framework.

What is Digital Transformation?

In theory, digital transformation is the incorporation of a digital framework into a company to enhance its operations and delivery. A digital transformation framework can be applied to any enterprise, irrespective of its size or business model. You can be a financial, educational, or pharmaceutical, your company can get a complete digital makeover.

However, the process for achieving the digital framework will not be the same. Every company goes through a digital business transformation for different reasons. Consequently, it will take a different approach for every company.

Abandoning the foundation principles on which the company was founded and introducing new ideologies is never easy. Digital business transformation is a gradual process. Even a well-planned structure will take time to execute perfectly.

You are more likely to witness a downfall in the early stages of your digital transformation. The key to a successful digital transformation framework is to continually challenge the current stage and gradually take it to the impeccable framework you are aiming for.

Digital transformation is not limited to operations, models, and customers but also includes the backend technologies like analytics, software, databases, etc. Everything will be digitized from the ground up.

What are the types of Digital Transformation?

Digital transformation is a wide topic. There is more to it than what meets the eye. The below-given information will give you an insight into digital transformation.

It can be classified into four major categories:

1.   Process Transformation

A business process is the main attribute of any business model. A process transformation aims to reinvent business processes to achieve a more efficient work cycle.

On a corporate level, it is paramount to keep challenging your processing time. Companies use data analytics, machine learning, robotics, etc to improve their services. By using the right tools you can get an edge over your competitors.

Transforming the processes on which the company operates requires a complete understanding of the company as well as the product.

E-commerce is a great example of process transformation. By simply changing the shopping process, shopping became easily accessible which in turn increased the customer outreach.

2.   Business Model Transformation

Process transformation focuses on a particular section of a company like delivery, accessibility, etc. On the other hand, a business model transformation changes the fundamental blocks on which that industry runs.

Companies are modifying their traditional business model to add more value to the company. OTT platforms like Netflix and Amazon prime video are great examples of business model transformation. They completely reimagined the video distribution industry.

Netflix started as a DVD rental, which later turned into a subscription model. In 2007, Netflix transformed its business model into a streaming service. This business model transformation turned a rental company into the highest revenue-generating OTT platform.

3.   Domain Transformation

If you are doing well in your business, that doesn’t mean that you have to stay within your domain. If you have the potential to provide the best product or service, you can go beyond the boundaries of your business.

Going against new competitors in a new market can be hard but domain transformation can be your biggest shot for your company’s growth.

The best example of a domain transformation is Amazon Web Services. Amazon went out of its domain and make its way into cloud computing. It was a highly competitive market dominated by tech giants like IBM and Microsoft. Today, AWS is the largest cloud computing and infrastructure service.

4.   Organizational Transformation

It is the most commonly used digital transformation approach. This transformation model completely redefines the mindset, processes, and capabilities of the company to achieve long-term transformation.

It makes the system more flexible and open to change. The focus of the company is gradually shifted from equipment to data.

Why Is Digital Transformation Important?

A company goes through digital transformation for various reasons:

  • To resolve a problem statement using a digital framework.
  • To introduce changes to fulfill customer expectations from the service or product.
  • To update your enterprise in accordance with the latest trends.
  • To switch to a new business model that ensures better performance.
  • To enhance productivity and reduce friction.

Up until now, digital transformation was a matter of choice but after the pandemic in 2020, it is not just about preferences. Digital business transformation is a matter of economical survival now.

If corona hits again, you will be unable to access a traditional business model remotely.

If corona doesn’t hit again, the companies which are currently working on their digital transformation will become way more efficient and adaptive in near future.

Either way, digital transformation companies are going to decide the leading enterprises of the new world.

Not only companies but also consumer behavior is shifting towards companies with a digital framework. This temporary shift is likely to stay as it is time-saving and easy to access.

In the last few years, you have seen significant growth in digital transformation companies. Big as well as small enterprises are seeking digital transformation services. Global spending on digital transformation is more likely to grow in the upcoming years.

A digital transformation can fully change how a corporation uses technology. You will witness changes in crucial areas like business function and customer interaction.

3 Pillars of Digital Transformation

There are 3 operational pillars of digital transformation: technology, organization, and culture. You need to be efficient in all three domains to have a successful digital business transformation.

Most companies focus on the technological and organizational pillars considering their competency level. As a result, the cultural pillar is not addressed appropriately.

Technological Pillar

Technology is the most integral part of any company. Especially when we are talking about digital transformation, we are equipping ourselves with the latest technology equipment and software. Technology is what creates the need for a digital transformation.

A company evolves based on technology. Any outdated equipment or software is replaced with the latest technology. It increases productivity and speed.

Adopting a new technology that is less stable is risky. But this is the risk we have to take to get ahead of our competitors. It is not about the loss we might face today, it is about the success that might propel us years ahead of our domain.

The latest technology is a bet but the odds are usually in our favor. Technical experts in your company will access the software or technology and how it will benefit the company.

Thoroughly understanding the technology and creating an execution plan for the same will help you strengthen the technological pillar of your company.

Organizational Pillar

After your company starts working on a digital transformation framework, new technology starts coming in. It is the organizational pillar that covers the process from managing the new technology to orienting the skillset.

Every management process like setup, operations, and assigning new roles and instructions falls under the organization.

A strong management pillar is going to complement the technological pillar over time. Digital transformation goes through many revisions. After a few recurrences, companies train their employees to lead the transformation on their own.

Without proper organizational skills, even the best technological trends fail to perform.

Cultural Pillar

The culture of the digital transformation depends on three departments:

IT department

The IT department plays a major role in a digital transformation. Their interaction with other departments can determine the cultural aspect of the transformation.

Human Resources

The human resources department supervises innovations and recruits new talent to operate the new tech. Both of them are vital aspects of a digital transformation.


Understanding the digital transformation requirements of a client and introducing them to the digital elements of the company.

A cultural pillar is affected by the individual beliefs of your employees. If the cultural beliefs of your company are not aligned with that of your employees, it will slow down the transformation process.

How can I measure the ROI on Digital Transformation?

Digital transformation companies are constantly growing. It is a promising sector with a high return on investment.

For leaders, a word of mouth is not convincing enough. They need to calculate their return on investment (ROI) to measure the transformation’s success.

So, how to calculate ROI?

Here is the formula:

ROI (%) = Net profit/Investment cost

where (Net profit = Expected revenue – Investment cost)

Apart from the textbook method, there are certain points you need to consider before calculating your return on investment.

#1 Focus on one transformation goal

Choose a major transformation goal that will benefit the whole corporation. It will help you in planning specific strategies and measuring your return on investment.

#2 Review the cost structure

You need to readjust your expenses in order to align with your transformation goals. Digital transformation services are somewhat expensive considering the purchasing, training, and coordinating costs.

#3 Use different metrics

To measure ROI accurately, you need to consider different metrics like customers, operations, safety, infrastructure, etc.

#4 Establish timelines

ROI can vary from time to time. If you are getting a high return on investment this month, it doesn’t assure profits for the next month.

You need to calculate ROI at regular intervals. Establish your measuring timelines considering your transformation strategy.

#5 Continuously measure ROI

Measuring your ROI for a short period is not going to give you accurate results. It takes time to conclude the effectiveness of the digital transformation framework. Keep calculating the ROI until the final phases of your digital transformation.

How can I start on Digital Transformation?

Every company that is considering going through a digital business transformation should understand the intricacy of the procedure. It is a procedure that can make or break your company.

Important Steps to get started with your enterprise digital transformation are:

Step 1: Understand the “What” of your Company:

Digital business transformation holds a different definition for every company because every business deals with different clients, products, and services.

Before getting into business transformation, you need to understand the purpose of your transformation. Understand what it means to your company and highlight your requirements and goals.

Step 2: Access your Digital Capabilities:

Once you have a fair idea of your goals, you should understand the digital capabilities of your company. Assess your business model and employees to calculate the current digital resources you possess. It will save you from putting excess pressure on your current resources.

Step 3: Formulate your Strategy:

Now that you have the insight into your company, you should formulate your course of action. There are many digital transformation technologies at your exposure.

You need to magnify your front-end as well as back-end requirements to find the best digital solutions for your company. Visualize your final product and make your way towards it using the right tools.

Step 4: Buy the Right Resources:

After establishing a perfect set of digital solutions for the transformation, you start buying them. This investment will drive you to see your enterprise’s digital transformation to the end.

You should not start working on your set-out plan without compiling all the required resources. As soon as you plan out your system, start shopping for the technologies.

Step 5: Create a Progress Chart:

It takes time to establish a digital transformation framework into action but it doesn’t mean that you should wander around aimlessly. You should follow a progress chart to track your transformation journey.

You don’t have to be accurate but taking too much time in the early stages can affect your business.

Step 6: Get the Right Skills:

Investing in digital transformation technologies is not enough for transformation. You need to get the right skillset in your organization to use the newly adopted technologies.

Without the required skills your transformation will not go as planned.

Step 7: Communicate:

Lack of communication is the biggest reason for a transformation failure. While introducing new technologies in your company, you should ensure transparency in your system.

Every person at your workplace should share your vision. You should prepare your employees for the transformation physically as well as mentally.

Step 8: Get Set Go:

Everything is set into action. You should start with your digital transformation. Do not let failures get into your head. Keep working towards your end vision.

In 2022, companies are going after digital transformation and the spending priorities are proof of that. Digital transformation companies are growing exponentially.

New digital trends are entering the market every day but everything is not worth investing in. Here is the list of digital transformation trends that will give you the highest return value:


Data speed and connectivity are the fundamental aspects of a digital platform. 5G is the fifth generation network that is gradually making its way into India. The major key points of a 5G network are:

  • Low latency
  • High-speed data
  • Better connectivity
  • Enhanced bandwidth
  • Improved user experience

Uninterrupted network connectivity can improve your work system.

Zero Trust Security

Digital transformation improves accessibility but accessing your database remotely increases the chances of a cyberattack.

Deploying a zero-trust security model will restrict any unauthorized access. Improved security will establish trust among customers. Also, advanced security features build a brand reputation in the market.

Data Fabric

Digital business transformation offers complete automation solutions. However, handing over your data process entirely can backfire. Therefore, highly flexible automation is the best way to do it.

A data fabric makes productive suggestions until the data teams are satisfied with the outcome. Once the system traverses through all the processes, the system is handed over to the data fabric.

RPA (Robotic Process Automation)

These are software robots that can be programmed to handle repetitive mundane tasks. It takes the unnecessary burden from the working team which helps them increase efficiency.

RPA can help you attain high product-to-market speed, and improve the scalability of your business.

Low-Code Platforms

Coding is a complex skill. It takes thousands of lines of code to run the software. Due to its complexity, developers came up with the idea of low-code platforms.

It is a coding platform that offers a “drag and drop” feature. You just need to make an interface and the software will prepare the back end itself.

It also simplifies the code by reducing its length and refining transparency.

Advantages of Digital Transformation

Digital transformation transitions an organization inside out. Here are some benefits of digital transformation:

Data Analysis

Every enterprise deals with a massive amount of data daily. Most of the crucial data is discarded without any processing. To make the best out of it, you should analyze the right data and incorporate it to create business intelligence.

A digital transformation framework can build an automated system to utilize the raw data and optimize it to increase transparency. Using digital transformation services, you will have all the customer data at your fingertips. You can use this data to generate more operational, financial, and business opportunities.  

Resource Management

Having a centralized database can provide you with better accessibility but it will also cost you data management. Large chunks of data are hard to manage.

One of the most vital benefits of digital transformation is its ability to compile resources efficiently. It can manage your application, database, and software data with ease.

Your database is loaded with sensitive information. An accurate digital system will optimize and secure data flow throughout the system.

Better Customer Experience

The biggest advantage of digital transformation technologies is a better customer experience. By optimizing the back-end processes, you are also delivering a seamless experience to your customers.

You can provide one-to-one assistance using email and reach out to more potential customers. A digitally powered system reduces processing costs and increases delivery speed, which in turn leads to a better customer experience.

Many companies prioritize the customer experience. If done correctly, it can bring you immense growth in revenue.

Increase Productivity, Profits, and Agility

Enterprise digital transformation automates the mundane tasks while the members focus on other crucial aspects. By utilizing time on innovation and adaptation, you are improving the workflow in your company.

Companies that wrapped up their digital transformation are enjoying increased profits and efficiency.

Disadvantages of Digital Transformation

No matter how perfect, everything has a downside to it. Here are some of the digital marketing challenges you might face:

Highly Competitive

Almost all leading enterprises are adopting digital transformation technologies. It is safe to think that your competitors are already done with their digital business transformation.

By going with the digital transformation trends, you are stepping into a highly competitive sector. You need to focus on a successful digital transformation in order to make your place on the top charts of your niche.

Delaying your digital transformation is not going to help either. Your core competitors will keep getting ahead of you.

You need to overcome the digital transformation challenges and obtain an efficient working system.

Constant Change

At every stage of your digital transformation, you need to keep evolving to keep up with the latest technology.

The digital market is always on the run. By the time you will optimize your previous digital structure, something new will invade the market. It is a never-ending process.

It Takes Time

You can never achieve an impeccable digital transformation framework in one go. It is not about what’s best in the market, it is about what’s best for your company. Finding the right technology is the key to a successful transformation. However, getting it right is a different thing altogether.

You need to adapt to change and keep testing. Your employees will also take time to gain some hands-on experience with the newly adopted framework.

It can be Stressful

An enterprise digital transformation is prone to failure. Constant failure can affect your employees mentally.

Newly equipped digital tools require regular training. Therefore, you should keep your team motivated. The best way to deal with this situation is to provide real-time personalized training to your employees.


Digital business transformation can accelerate your business growth, but implementation is the biggest digital transformation challenge. Understanding your business strategy and sticking to it is the right way to do it.

New digital transformation trends emerge in the market every day. Using the latest tech isn’t always going to give you the desired results. Focus on the digital transformation frameworks that suit your company.

Every penny spent on the right digital transformation will give you a high return on its value.

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