What Drives Digital Transformation?

Digital transformation has equipped businesses with robust changes and flexible plans. But at the core of the global shift lies the critical question of what drives digital transformation at macro and micro levels.

Digital transformation has changed every aspect of a business. From the way communication takes place to different delivery methods, the transformation has rebuilt organizations across different industries. The rapid growth of technology coupled with evolving consumer behaviors and workplace demands has accelerated this shift.

In what is now called the Fourth Industrial Revolution, businesses are reimagining their goals and plans. The silent digital revolution that began in the last century has witnessed exponential growth, especially in the form of digital transformation in the last couple of years.

The growth of digital transformation took place in the blink of an eye, quite metaphorically. Businesses worldwide have changed their foundational structures. Entrepreneurs, employees, and customers – all of them – seem to adopt digital transformation. But at the core of this global shift lies the critical question of what drives digital transformation.

Outdated & Newer Technologies

The chief factor that leads the entire digital revolution, including the escalation of digital transformation, is undoubtedly technology. It has changed the way people think and live. Moreover, the impact of technology on businesses is the beginning of disruptive growth.

Digital transformation slowly began when people found the advantage of newer technologies and experimented in businesses. The ability to store assets in the cloud, the advantages of social media, and the enhanced interaction using chatbots, all attracted businesses. It showed the potential outcome and gains of a digital transformation.

However, there is more to this technological influence on digital transformation. Although newer technologies and integrating them into businesses sparked the transformation, outdated technologies played a significant role in this transition.

Wondering how? The prevalence of old methods caused many obstacles to businesses. When organizations saw a chance for growth, it was often hindered by legacy technologies in use. It seized new opportunities, and so businesses were in search of a solution.

When digital transformation presented itself, it had the solution for all of their concerns. The real-time analysis and digital experiences pushed back the legacy technologies that were already on the brink of being ignored as outdated. In addition, digital transformations brought home the flexibility and agility businesses struggled to find with old systems.

It also cut out a lot of expenses caused by the legacy tech. Therefore, the outdated technologies and newer tech innovations gradually initiated the lead for change through digital transformation.

Changing Consumer Expectations

When B2C companies picked up newer technologies to outshine the market, they began to alter consumer behavior and expectations. Just like businesses, the experience of new tech changed the likes and actions of consumers.

Companies were soon to follow up on this trend. Powered by the changing consumer expectation, firms like Uber and Netflix redefined their businesses. The emergence of such shifts only strongly changed consumer behavior and vice versa. 

Covid19 and Survival Needs

Such drastic developments of digitally mature firms caught the eyes of the business world. Organizations were planning to make a slow and steady digital transformation. Most companies were waiting for the others to try and pass/fail to learn from them and make better decisions.

However, the pandemic and restrictions forced businesses to implement digital transformation immediately. As Darwin proposes, evolution worked again on the theory of ‘survival of the fittest.’

The need to do things immediately silenced the need to do things perfectly. Digital transformation gained momentum, and every business prioritized the change. In the past two years, businesses across different industries have invested in digital technologies. There have been comprehensive and unique transitions happening in multiple fields. So as businesses survived, digital transformation accelerated. 

Digital Edge

Two years into the survival crisis, reaping the benefits of digital transformation slowly changed the factors that led to this change. From the need for survival to wanting to stay ahead in the competition, digital transformation improved businesses.

Today, the changes accelerated by digital transformation and individual strategies of different organizations make a difference. Every business is working on its own digital transformation strategy to have a competitive digital edge over others.

At the macro level, the change that led to digital transformation was impelled by different factors. It ranges from shedding outdated tech, embracing new tech, and changing according to customer expectations to surviving a crisis and trying to build a competitive edge in the digital world. 

Beyond Tech

The drive of digital transformation at the micro-level is about the necessities. At organizations, what led to the transformation goes beyond technology. As businesses started to embrace technologies, they learnt the need to balance technology and people.

The digital transformation gave them that balance. It supported both technology and people. With a digital culture that worked towards success, digital transformation was the best find that led people to use technology to achieve their goals.

Culture and Leadership

This brings us to the crucial driving point that leads to this change. While technology is the fundamental component of digital formation, a culture with a digital mindset inspired by solid digital leaders helped mature digital companies stand out.

Other Factors

The vast savings on using digital technology shifted both small and big enterprises towards digital transformation. The transition brought them closer to customers like never before. The benefits of digital technologies deeply impacted every organization and drove them towards integrating digital transformation.


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