How is digital disruption transforming businesses?
Decoding digital transformation
Digital transformation has created a rapidly changing business environment. Digital is disrupting value chains and compelling companies to rethink nearly everything they do.
What are the three core changes initiated by digital transformation?
- Augmented traditional business models
- Emergence of wholly new types of business models
- Better customer experiences, streamlined operations and increased profitability
*Embracing digital technology, MITSloan Management Review, MITSloan, 2013
“Whether your company is among the early adopters disrupting the market or among those forced to follow is dictated by how you understand and respond to opportunities and risks that digital presents.”
Partner, Advisory Services & Member Global Emerging Markets Advisory Core Group, EY
In a digitally driven era, companies need to step up their innovation and operational efficiency, customer experience, brand and marketing efforts, as well as cut cost.
To achieve this, they rely on certain factors, popularly referred to as SMACi:
- Social media: to interact with their customers
- Mobility: shifting the focus of application development to a “mobile-first” approach
- Analytics: enabling enterprises to explore large volumes of data to gain insights and drive strategic decisions
- Internet of Everything: opening significant opportunities by connecting everything to internet
- Cloud: reshaping the way software and services are sold and delivered
These technologies have become integral for digitizing products and services, customer experience, operations and workforce.