6 digital transformation models you can choose from

Digital transformation is becoming necessary on all aspects of business. Many companies are finding that in order to remain competitive, they need to digitalize their processes and operations.

Digital transformation offers a variety of approaches. We will discuss six digital transformation models you can choose from. Each of them has its own unique set of benefits and drawbacks, so it will be easier for you to decide what works best for your type of company.

1. The digital native model

Digital native model is an approach, that  works best for companies, who are born digital. This means that digital is not only part of their business model but is also deeply ingrained in the company culture.

Advantages:

– This model is best suited to take advantage of digital opportunities and threats.

– It is more agile and responsive to change.

– It helps companies drive growth and create shareholder value.

– It can provide greater efficiency and productivity.

Drawbacks:

– This model can be difficult to replicate for companies who are not born digital.

– It requires a complete overhaul of existing systems and processes.

– One of the things to have in mind is that it may require retraining of employees.

2. The digital laggard model

The digital laggard model is an approach, that works best for companies, who are behind the curve when it comes to digital transformation. This means that digital is not part of their business model and is not deeply ingrained in the company culture.  

Advantages:

– This model helps companies catch up to their competitors who have already adopted digital transformation.

– It can be less disruptive to a company’s existing operations.

Drawbacks:

– The digital laggard model can put a company at a competitive disadvantage if they do not adopt digital transformation quickly enough.

3. The digital follower model

This model is an approach, that works best for companies, who are willing to follow the lead of their competitors when it comes to digital transformation. This means that digital is not part of their business model but the company is willing to be adopted if it becomes a competitive advantage.  

Advantages:

– This model helps companies stay competitive with their digital transformation efforts.

– It enables the company to have a digital transformation without having to go through all of the changes that digital frontrunners do.

Drawbacks:

– The digital follower model can put a company at a competitive disadvantage if their competitors are digital natives or digital laggards.

– Another disadvantage is that digital followers may fall behind companies who are digital frontrunners and may not be able to take advantage of new opportunities as quickly.

4. The digital hybrid model

The digital hybrid model is an approach, that works best for companies, who are willing to mix digital and traditional approaches when it comes to digital transformation. This means that digital is part of their business model but is not the only focus.  

Advantages:

– This model helps companies take advantage of digital opportunities while still maintaining a connection to their traditional operations.

– It is less disruptive than a complete overhaul.

– It allows the company to focus on one area at a time and it has lower upfront costs.

– The digital hybrid model can be less disruptive to a company’s existing operations, because gradual implementation can make it easier to manage change.

Drawbacks:

– It takes longer to see results of this approach.

– The digital hybrid model may require more resources in the long run.

– Results may be less transformative than a complete digital native approach.

5. The pilots and proofs of concept digital transformation model

The digital transformation model of pilots and proofs of concept is an approach, that works best for companies, who want to test digital solutions before fully committing to them. This means that digital is part of their business model but is not the only focus.  

Advantages:

– This model helps companies validate digital solutions before fully committing to them.

– It can be done incrementally, so it is less disruptive.

– It allows the company to test new ideas and approaches before committing to them.

Drawbacks:

– This model takes longer to see results.

– It has a limited scope that can make it difficult to achieve transformational change.

– It requires careful planning and execution to ensure successful outcome.

6. The co-creation digital transformation model

The digital transformation model of co-creation is an approach, that works best for companies, who want to involve their employees and customers in the digital transformation process. This means that digital is part of their business model but is not the only focus.  

Advantages:

– This model helps companies create digital solutions that are tailored to their specific needs.

– It may result in more creative and innovative solutions.

– This model offers a space to engage employees in the digital transformation process.

Drawbacks:

– It requires a high level of communication and coordination.

– This approach may be time-consuming.

– It requires employees to have the skills and knowledge to contribute effectively.

As you can see, each digital transformation model has its own advantages and disadvantages and there is no one-size-fits-all approach, so it is important to select the one that is the best fit for your company.

Need help doing this? Don’t wait and give us a call!