How to Build a Business in the Digital Age

Digital transformation is changing the way business gets done and creates new classes of businesses.

With digital transformation, companies are taking a step back and revisiting everything they do, from internal systems to customer interactions both online and in person.

They’re asking questions such as, “Can we change our processes in a way that will enable better decision-making, game-changing efficiencies, or a better customer experience with more personalization?”

An Example

Netflix is a great example. It started out as a mail order service and disrupted the brick-and-mortar video rental business. Then, digital innovations made wide-scale streaming video possible.

Today, Netflix takes on traditional broadcast and cable television networks and production studios all at once by offering a growing library of on-demand content at ultra-competitive prices.

Digitization gave Netflix the ability not only to stream video content directly to customers, but also to gain unprecedented insight into viewing habits and preferences.

It uses that data to inform everything from the design of its user experience to the development of first-run shows and movies at in-house studios.

That’s digital transformation in action: taking advantage of available technologies to inform how a business runs.

A key element of digital transformation is understanding the potential of your technology. It means understanding what your technology is really capable of and how you can adapt your processes to make the most of your technology investments.

Before Netflix, people chose movies to rent by going to stores and combing through shelves of tapes and discs in search of something that looked good. 

Now, libraries of digital content are served up on personal devices, complete with recommendations and reviews based on user preferences.