What is with the digital transformation hype today? Why are more and more companies doing this transformation? If you are curious, then keep on reading.
Digital Transformation Hype
A digital transformation, sometimes called digital reinvention, is the process of re-imagining a company or product with technology. A company may transform to better fit the needs of its customers in the digital age. They may also do it to be more efficient in their processes, or to reach new markets they weren’t able to before. Like they did when they first made the transition from paper to digital records.
So why are more and more companies doing this? The answer is simple. Most companies today are digital companies. They don’t manufacture goods anymore; instead, they provide services.
A great example of this would be Uber. Uber doesn’t own any cars. Instead, they provide a service connecting people who need rides with people who are willing to give rides.
What does this mean for you? Well, if you are looking for a job, you will most likely look for jobs with companies that provide services instead of goods. If you are an accountant, then your clients will be more likely to be digital companies than manufacturing companies.
Businesses During Digital Transformation
When there is a downturn in the economy, which type of businesses thrive? The ones that provide services or the ones that manufacture goods?
The answer is simple. Digital companies thrive during recessions because they don’t have as many overhead costs as manufacturing companies do. They don’t have to pay for machinery and equipment to produce their product. Instead, they just need computers, software, and employees to provide their service.
When times are tough and money is tight, people don’t go out as often as they usually do. They also don’t buy as much furniture or electronics as they usually do. Instead, they stay home and order out or order their food from a restaurant or delivery service. They also buy fewer clothes and shoes from the shops instead of going shopping for them.
When times are up and money is flowing freely, people go out more often and buy more things from stores instead of ordering out or getting things delivered from restaurants or delivery services. They buy more clothes and shoes from stores too instead of going shopping for them.
A great example of this would be Uber again. Uber’s profits drop when oil prices drop because people start using public transportation instead of riding in Ubers. This is because public transportation is cheaper than riding in Ubers when oil prices drop.
It Is Not a Hype Anymore
That’s why digital transformation is so big right now! It’s not just hype! It’s about providing services to your customers around the world who have different needs based on where they live! So, if you are looking for a job, look for jobs with companies that provide services instead of goods.
Do you have any questions about digital transformation? Please feel free to ask a question in the comments section below!