FACT CHECKED
Digital transformation is changing the business world from top to bottom, spawning an entire “digital transformation economy.”
Today, there are new verticals devoted to:
- Researching and developing new technology
- Supporting digital transformation efforts
- Building tools that enable digital transformation
The digital transformation economy has emerged to help companies evolve, transform, and adapt in today’s changing world.
Businesses undergoing digital transformation would do well to learn about this economy.
After all, the better they understand digital transformation, the more they will be suited to living in the digital economy.
The Digital Transformation Economy: A Big-Picture View
Let’s take a look at the world of digital transformation from a top-down perspective.
There are a few important pieces to understanding the digital transformation economy:
- Technology – Technology itself is the first building block of digital transformation. New technologies, such as mobile devices or new microchips, open up opportunities for growth, innovation, and disruption.
- Innovation – New technological advances drive innovation, which in turns fuels disruptive change. These changes ripple out and impact the wider economy to differing degrees – just consider the impacts of smartphones, tablets, or the web itself.
- Enabling Change – As new disruptions trigger transformations in the marketplace, businesses must respond. But change doesn’t happen automatically. Companies must have the tools, skills, and ability to change.
Below, we will explore a few verticals that power these three areas.
Technology Companies
Technology, as mentioned, drives innovation.
Without technology, there would be no digital transformation.
Here are a few examples of technologies that have driven large-scale transformations:
- The world wide web
- Smartphones
- Wi-Fi
- Cellular networks
Each of these technologies has contributed to explosive growth in a number of industries.
And each one has also contributed to today’s digitizing global economy.
But the next few decades promise even more technological advancements:
- The Internet of Things (IoT)
- Augmented reality and virtual reality
- Blockchain
- Artifical intelligence
To name a few.
In short, today’s digital transformations are just the tip of a larger iceberg.
Enabling Transformation
These innovative breakthroughs are the fundamental force driving change.
However, as mentioned, change cannot take place without a few other ingredients, such as:
- Organizational change
- Digital skills
- IT capabilities
- Modern business models
These are the needs that have helped to spur the development of a digital transformation economy.
Below are a few examples of verticals devoted to addressing these issues.
Digital Transformation Consulting Firms
Digital transformation consulting firms are built to address all of the above issues.
Each consultancy is unique, providing its own blend of consulting solutions.
A few examples include:
- Digital strategy
- IT modernization
- Technology implementation
In many cases, firms specialize in a particular field, industry, or technology.
Companies may assist with marketing automation, customer experience transformation, or IT support, for instance.
Digital Adoption Solutions
Digital adoption solutions are software solutions that assist with employee training, productivity, and engagement.
They are ideally suited for:
- Employee Onboarding and Training – Digital adoption solutions offer in-app training for other software platforms, simplifying training and cutting costs.
- Automation – Mundane, repetitive tasks can be automated with ease, freeing up employee time for other things.
- Customer Onboarding – By guiding customers through the onboarding process, digital adoption solutions increase customer retention and decrease acquisition costs.
To name a few examples.
Companies such as WalkMe develop these solutions, customize them to their client’s needs, and provide ongoing support.
IT Consulting Firms
IT consultancies assist with the technical side of digital transformation, including:
- IT Modernization – To stay competitive, companies must have modern IT capabilities. These can include bolstering cybersecurity, migrating to cloud computing, or developing custom applications.
- Managed IT Solutions – Outsourced IT is a good choice for companies that don’t have the resources to manage certain IT functions.
- IT Development – Companies that are scaling may need to develop a more robust IT function. Or they may need to build a department from scratch. IT consultants and consulting firms can help in this area as well.
Because technology is the most fundamental capability required for digital transformation, choosing the right IT support agency is a critical decision.
Change Management Consultancies
The human element is one of the most important elements in organizational change.
Change management consultants and agencies assist with:
- Assessing risk, potential, and change readiness
- Developing change strategies and action plans
- Overcoming barriers to organizational change
- Project management and optimization
To name a few.
Final Thoughts
Digital transformation is a large-scale process affecting the global economy.
And this transformation process itself has spawned its own economy – a group of verticals that enable, facilitate, and fuel digital transformation efforts.
Companies engaged in digital transformation should investigate each of these solutions carefully.
The right providers can make a big difference when it comes to ROI and the success of a transformation project.
