What digital transformation means during a company is new business development by digital, productivity improvement by fusion of analog and digital, transformation of existing business by cost reduction and speed improvement, and a corporation to understand these. it’s an organizational change.
Today, digital social and business transformation is being touch on a day to day as news and private events. First, i might wish to check out the business transformed by digital from three perspectives: (1) a world led by digital companies, (2) a business changed by the penetration of smartphones, and (3) a fusion of the web and therefore the world.
(1) the planet led by digital companies
Marketcapitalization is an indicator of the dimensions of a corporation.
Market capitalization = market capitalization of shares x total number of shares
Since stock prices include not only current conditions but also future expectations, an outsized market capitalization means current business and future growth are expected. Figure 1 shows the world’s top five stock prices and market capitalization as of August 2, 2017.
These top five IT industries now dominate the highest five of all listed companies round the world. it’s an occasion that symbolizes the transition from the age of the large manufacturing industry represented by GE (General Electric) within the us to the age of energy represented by ExxonMobil within the us then to the age of digital technology. The market capitalization of Toyota Motor, which represents US, is 20.4 billion dollar (as of August 3, 2017), while that of the highest Apple is about 89 billion dollar, which shows its strength.
These companies, led by Apple, have a digital culture and are known for his or her speed of business. albeit you check out the founding period, Google is 1988, Amazon is 1994, Facebook is 2004, so you’ll see the rapid climb . The degree of selection and concentration of business domains is additionally different. About 98% of Facebook and about 88% of Google are advertising revenue from services that use digital technology. The business of digital technology and therefore the culture and speed of digital companies are leading the planet .
(2) Business changed by the penetration of smartphones
Devices and network environments have also changed significantly. Worldwide smartphone shipments reached 1.30 billion units in 2015. By manufacturer, Samsung in South Korea has 22.8%, Apple has 15.3%, and Huawei in China has 9.6% (according to Taiwan Trend Force). At an equivalent time, the trends of related businesses, including parts for smartphones and applications that run on them, became a serious economic impact.
Smartphones became indispensable for lifestyle and business as devices which will be used anytime, anywhere in lifestyle .consistent with a survey by the MMD Institute, the ownership rate of smartphones in US exceeded 60% in 2015. The results show that about half the people surveyed use smartphones for quite 3 hours each day .
With smartphones and therefore the mobile networks that connect them, users can easily experience digital experience anywhere. On the opposite hand, businesses also provide services and content within the sort of smartphone apps, eliminating the necessity in touch the burden of devices and infrastructure on their own.
(3) Fusion of net and real
Amazon’s sales reached $ 76.3 million in 2015, making it one among the highest 10 retailers within the world. the typical rate of growth from 2010 to 2015 was 20.8%, which was an enormous lead for other companies, and this momentum remains continuing. additionally , Amazon is trying to significantly change the business model and business process of physical stores with its success on the web and therefore the digital technology cultivated there.
Amazon Books, a true bookstore, enables AI response, search by cover photo, and payment by smartphone app.
The transformation of digital technology will significantly change the boundary between the web and therefore the world . Internet companies are expanding their business by applying digital technology processes and business models that have enabled their success to the important world, creating higher customer value and competitiveness. albeit you are feeling that you simply still have strengths in conventional business, if you are doing not proceed with digital transformation, you’ll not be ready to answer the changing business environment and lose your competitiveness.
Digital disruptive innovation has occurred in many areas
The same is true of the devastating innovations Uber Technologies has delivered to the taxi industry and Airbnb to the hotel industry. This trend is close to cause even greater changes by combining real and digital technologies in various fields.
In short, digital technology is becoming at the core of remodeling the business itself, delivering new products / services, new values, and new ways of working altogether areas, including processes, services, and merchandise support. Achieving digital transformation in such a situation not only accelerates the speed of transformation of the corporate , improves the expansion of the corporate , the corporate value, and therefore the margin of profit , but also changes caused by the disruptive innovation and innovation within the world. it’s also important as a preparation for.