Answers to FAQs about Digital Transformation

January 22, 2021

If digital transformation is a new concept for you or your organization, you most likely have a lot of questions. This article aims to answer those questions so you can get started with your digital transformation strategy.


What is a digital transformation strategy?

A digital transformation strategy is a detailed plan of action that describes how an organization can change its processes, approach, domain, or culture by leveraging technology to solve key organization or industry issues.


What are the 4 main areas of digital transformation?

The four main areas of digital transformation are:

  1. Business Process
  2. Business Model
  3. Domain
  4. Cultural


Business process transformation refers to radically changing business processes, workflows, and business functions, typically by incorporating new technology.

Business model transformation means the change in the business source of revenue, target customers, or product offering.

Domain transformation is the transfer or expansion of the market domain or industry a company is targeting.

Cultural or Organization transformation is the shift in the mindset, skills, and behavior of all the members of the organization.


What drives digital transformation?

There are several factors that drive digital transformation in industries and organizations. The most common ones are:


  • Higher customer expectations
  • Fast technological innovations
  • Rich customer data and insights
  • Staying relevant and competitive
  • Stricter competition in talent acquisition and retention
  • Need to improve efficiency and save costs
  • Uncontrolled factors like a pandemic
  • Higher security risks
  • Need to find new revenue streams
  • Need for fast decision making and product release


Why does digital transformation matter?

There are many reasons why digital transformation is important but at its very core, it keeps businesses from being irrelevant and obsolete in a technologically-driven world.

What are the benefits of digital transformation?

Some of the most common benefits of digital transformation are:

  • Improved customer satisfaction
  • Reduced business costs
  • Optimized business processes
  • Richer data for decision making
  • Stronger workforce
  • Improved organizational culture
  • New sources of revenue
  • Better or new products
  • Staying ahead of the competition
  • Higher revenues
  • Increased agility
  • Better resource management
  • Better transparency


What does a digital transformation consultant do?

A digital transformation consultant provides guidance and advice to organizations who wish to solve their problems through radical and strategic changes in one or multiple aspects of their business with the help of technology.


How digital transformation is driving customer experience?

A lot of digital transformation is driven by the need to constantly improve the customer experience. This stems from the stricter demand of customers for more personalized, secure, and smooth digital experiences. Better data and insights collection brought about by digital transformation is making this much easier for companies. 


What comes after digital transformation?

A digital transformation strategy may be considered finished if all of the tasks set in the beginning have been accomplished. However, digital transformation does not stop there.

Monitoring the impact of the changes implemented is important to know if more changes have to be done. Gartner also introduced the ContinuousNEXT approach which is the readiness of organizations to constantly evolve after a digital transformation. This includes monitoring emerging technologies and competitors.

Written by
Jomel Alos
Jomel Alos

Digital Marketing Strategist

Jomel is a full stack digital marketer who advocates for creating high quality content to help both the audience and search engines. He has worked with clients from various niches and verticals.

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