Digital Transformation Changes-How Companies Create Value

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Digital Transformation Changes-How Companies Create Value

Culture | Oct 02, 2022

Digital transformation is the process of incorporating digital technology into all areas of business for greater productivity, customer experience, and innovation.

How companies create value with digital transformation

There are 4 main types of digital transformation: process, business model, domain, and cultural/organization.

Each one has one simple goal: use technology and digital tools to improve, which ultimately creates value for everyone involved, setting a precedent for the future. Every business that wants to stay relevant needs to adapt to the changes in its industry to continue to create value and innovate.

Process Transformation

Process transformation is the strategy of using automation, APIs, and other AI to reduce costs, simplify processes, and make repetitive processes easier for staff and customers. The best changes to make are determined by market research, productivity reports, and goal setting.

An example of process transformation is businesses using automation tools to simplify their workflow or offering an easy-to-use shopping app for their customers.

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Business Model Transformation

Business model transformation is, simply put, businesses adapting and changing with the times. If a business offers services that are becoming obsolete, they need to adapt or fail.

A great example is Netflix changing its model from obsolete DVD delivery in the mail to a streaming service.

Domain Transformation

Domain transformation is the process of one type of business redefining its offerings to delve into multiple industries and marketplaces. The company could pivot, switching to a new set of offerings entirely, or begin building a portfolio of offerings with the original service at the center.

An example of this is Uber getting into the food delivery game with UberEATS.


Cultural and organizational transformation is when companies use technology to better their company culture and workflow which makes for better company culture and employee retention, and ultimately a better bottom line.

An example of cultural and organizational transformation is companies adopting project management tools or a remote work policy, which can make for happier, more productive employees.

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