Digital Transformation (9/15)
There are three key factors of transformation: changing consumer demand, changes in technology and changes in competition. These, of course, are an ecosystem and it is always a convergence of factors that cause changes in a market.
When any of these factors coincide so that a “business operating model is no longer able to serve its customers, the business has reached a turning point Here’s the thing. – Companies evolving not reach the points turning! They spot opportunities before they become turning points. The development of enterprises continuously focus on their customers, changing and adapting with or leader in its market.
Companies that critical thresholds for areas when it is too late to be considered opportunities need to transform, and those who do not tip over the edge. Consider HMV as an example of this. Clearly, none of this is new. There are good models used to understand these market phenomena; Porter’s Five Forces, McKinsey 7S and Boston matrix, for example.
Then we will define digital. I think of it in the broadest sense, as any technology that connects people and machines to each other or the information sense. Therefore, “digital transformation” is a wholesale restructuring visible to avoid a turning point caused by digital technologies and the effects on the market.