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WHAT IS DIGITAL TRANSFORMATION?
By Advantage Business systems
WHAT IS DIGITAL
TRANSFORMATION?
The most confusing part about Digital Transformation is the word "Digital".
Digital Transformation actually has very little to do with technology. It refers to a fundamental shift in thinking, thought, process and behaviour because of technology.
WHY IS DIGITAL
TRANSFORMATION SO
IMPORTANT?
Digital Transformation is important because it
is fundamentally altering the very fabric of our
society.
Often, Digital Transformation turns a business
on it's head and introduces an entirely new
concept or business to the market.
And many of these businesses have only been
around for little over a decade. And their
impact has been profound.
Established: 2006
UBER
Established: 2009 Established: 2008
AIRBNB
EXAMPLES OF DIGITAL DISRUPTORS
HOW STEVE
JOBS DISRUPTED
MUSIC
In 2003, tech giant Apple opened the iTunes store. In week 1, it sold over 1,000,000 tracks. It changed the music industry.
The idea was simple: "How can we solve the problem of being able to listen to whatever music you want, whenever you want and fit it all into your pocket?" The answer? iTunes and iPod.
The technology available to Apple was merely the tool to reach their solution.
YOU NEED TO KEEP AN EYE ON
THESE TRENDS
Failure to observe trends in the market can have disastrous
consequences.
Perhaps one of the most famous cases of recent times is the Blockbuster
vs Netflix case.
In the space of a decade, Blockbuster went from being the market leader
in the video rental business, to being bankrupt.
NETFLIX VS
BLOCKBUSTER
Blockbuster were usurped by Netflix as the market leader in their field.
Unlike Blockbuster; Netlflix adopted a subscription approach to video rental. They also gambled on cloud technology to deliver video content. Because of the risk they took, Netflix successfully disrupted the video rental market.
Fast Forward to 2017 - Blockbuster folded 7 years ago and Netflix have just reported record profits. They're now the largest video content provider in the world.
SO WHY IS DIGITAL
TRANSFORMATION
HAPPENING?
Before I answer this question, let's just take
a step back for second.
This isn't the first time Digital
Transformation has happened in some
guise.
In fact, it's happened repeatedly throughout
human history.
1876
Alexander Graham
Bell invents the
telephone
1905
2.2 million people
own a phoneOver 10 million people
own a phone, double
that of 5 years prior
1910
THE RAPID ADOPTION OF THE
TELEPHONE
1927
Philo Taylor
Farnsworth invents
the TV
1939
7,000 TV sets in the
US
67,145,000 TV sets
owned across the
length of the US
1959
THE RAPID(ER) ADOPTION OF
THE TV
THE (VERY) RAPID ADOPTION OF
2004
Mark Zuckerberg
invents Facebook
2010
500 million global
users
1.4 billion global users
2014
WHY ARE THESE
FIGURES IMPORTANT?
It demonstrates that as a species, we're
relentless innovators!
Speaking of innovation - It's happening
more frequently now. It took about 30
years for the phone to be adopted, 25 for
the TV and 6 years for Facebook to reach 1
in 5 of the worlds population.
Innovation and disruption are becoming the
norm.
WHAT CAN I DO?
The first thing you need to do is
acknowledge change is coming.
And it's about learning how things are
going to change, so you and your
business can be ready in time.
Explore new technologies, read about
them and educate yourself! Your next
opportunity to grant your business
competitive advantage might be
around the corner.
EXAMPLES OF NEW TECH:
DRIVERLESS CARS
EXAMPLES OF NEW
TECH: AI
WHATEVER YOU DO, DON'T BURY
YOUR HEAD IN THE SAND!
OTHERWISE...
YOUR BUSINESS MAY
BECOME A THING OF
THE PAST
