03 Oct Demystifying Digital Transformation
A recent survey released by Gartner showed that 42% of CEOs have begun the process of digital transformation while 20% have embarked on a “digital-first” approach to business challenges, taking technology to the core of their enterprise models. But while most organizations agree that digital transformation is essential, the specific implementation of such initiative has not been agreed upon because at the crux of the disconnect is a lack of recognition for what this buzz phrase means.
In its simplest definition, digital transformation is the process through which organizations metamorphize to adapt to the disruptions caused by technological advancements. However, what’s important to note is that technology in and of itself is not the cause of such disturbance. How it is used in everyday life is what necessitates the need to re-examine the status quo. Therefore, digital transformation should be better defined as the response by businesses to the changes in how consumers use digital innovations in their lives as well as the channels through which customers discover, purchase and interact with products and services. Understanding how technology is being used and its potential business impact is the underpinning foundation which enables true and continuous digital transformation.
For Reed Hasting and Marc Randolph, founders of Netflix, the DVD represented a chance to leverage a new technology to break into the market. Introduced in 1995, the DVD was lighter and easier to mail than a videotape. However, at the time, less than 1% of Americans had DVD players. Even 7 years later, Netflix was still having trouble remaining profitable, having ceded its sales portion of DVD’s to Amazon, and fighting off imitators like Blockbuster and Walmart who were starting similar DVD rental by mail services. But even back in 2000, CEO Hasting was quoted as saying, “What NetfFlix is about is owning a transition stage as rental converts to video-on-demand”. By 2007, the streaming service had started, and despite a bumpy start, video on demand has become the norm in television viewing, undoubtedly shifting the paradigm of entertainment consumption.
By staying in front of the wave of changing technology and understanding consumer interaction with the technology, Netflix has not only changed the model of movie rentals, but the face of entertainment itself. Companies that are quick to recognize the slight vibrations created by emerging technologies and react in an agile, forward thinking manner are the ones that will succeed. Just as DVDs and then streaming speeds changed the way people watched television, mobile technology is changing the way people are interacting with businesses.
Established in 2011 by technical experts with extensive knowledge of the enterprise mobility architecture, Kaonsoft is uniquely poised to help companies through this transition, and can help make your company the next Netflix success story in your field. We are an innovative software company that delivers secure mobile strategies to organizations across industries to improve customer experience, increase top line growth and streamline operations. We understand the complexity of the organizational data construct and we work hard to bridge the gap between business and technology. Partner with us to navigate through the digital ecosystem during times of disruption and gain a competitive advantage.