Digital Transformation

Question 1

Digital transformation definition

Answer 1

The integration of digital technology into all areas of a business, fundamentally changing how you operate and deliver value to customers
Also involves a cultural change which requires organisations to continually challenge and get comfortable with failure

Question 2

Benefits of digital transformation

Answer 2

• Improved operational efficiency
• Faster time to market
• Meeting changing customer expectation
• Improved new products and services
• Reduced cost of production
• Introduction of new revenue streams

Question 3

Digital innovation

Answer 3

That spark of creativity that leads to development of new technology or innovative applications of existing digital tech

Question 4

Drivers of digital transformation

Answer 4

• lack of face-to-face interaction: the need for virtual interaction and engagement
• pre-Covid technologies do not cover this gap
• supply chain transformation
• the need to business sustainability

Question 5

Example of strategic digital transformation

Answer 5

• Amazon diversifying from retail to IT by offering cloud services
• Nike leveraged data analytics, updated it e-commerce strategy, created stronger digital marketing campaigns. Membership opportunities improve customer experience online

Question 6

Strategic digital transformation

Answer 6

• requires change in a business model and value proposition
• organisations may diversify into new markets

Question 7

Types of digital transformation

Answer 7

• business process transformation: Domino’s now lets you order from any device which increased consumer convenience pushing sales
• business model: e.g. Netflix’s reinvention of video distributing
• domain transformation: Amazon expanded a new market domain with its Amazon web services
• cultural transformation: integrating digital technologies into all areas of an organisation, alongside a cultural shift

Question 8

Challenges

Answer 8

• resistance from customers (B2C)
• IT-Business alignment
• Long term change in mind

Question 9

How does transformation happen?

Answer 9

• planned: regulatory change, new policies…
• technological disruption: technology as a driver of change
• emergent: rapid change, such as COVID-19

Question 10

Digital transformation process

Answer 10

1. Digitise information (digitisation)
2. Organise information (digitisation)
3. Automate processes (digitalisation)
4. Streamline processes (digitalisation)
5. Transform the institution (digital transformation)