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Digital transformation is a strategic transformation that changes the operating setup, approach to marketing and product development, service models through the adoption of digital technologies. The continuous development of new technologies is ushering in a new era of technological transformation unlike what was existing previously. One thing is certain, this transformation integrates all stakeholders on a global level.

Digital transformation is a useful strategy that improves products and services, expedites operations and processes while expanding the abilities of startups and enterprise organizations. For startups that are trying to gain market penetration and capitalize on these new technology advances, digital transformation is arguably useful to them. Aside from creatively applying these new technologies, startups can innovate around these advances to provide superior value and enhance digital usage.

In this article, we will consider the impact of digital transformation in startups. Their benefits and shortcomings are considered.

Digital Transformation as a Business Strategy for Startups

Unlike large enterprise organizations, startups have the advantage of adopting new digital technologies to their business model. Taking full advantage of the various innovation of digital technology produces excellent results. Startups are better posed to establish and build around a business strategy that takes the strength and opportunities from adopting these digital technologies.

The competitive advantage of using digital innovation is a proven strategy that gives startups an edge over their enterprise company competitors. Startups can re-imagine business models around new and innovative tools that transcend the traditional methods of providing products and services to customers. This primarily borders around how your startup operates, engages and delivers your products and services to customers.

Significantly, the integration of digital innovation and general transformation of business processes delivers significant growth for startups and greatly benefits customers.

Main Areas for Digital Transformation

Startups that wish to consider a lifelong integration with the digital transformation progression need to note these four areas. These areas are the main point of focus to get the best value from a digital transformation strategy for organizations

  1. Process and Operation Transformation

Process and operations transformation involves the identification and transformation of business element processes and operation in order to achieve specific targets. Startups are the ideal business type because they can radically change their processes and operation with little or no negative effect on the business. However, these radical digital transformations enhance the modernization of process excellence while integrating new technologies at a lower cost.

To integrate these transformation strategies, there are similar steps that startups can deploy to make the drastic changes reflect on the business. Some of the steps include

i: Specify the target for the transformation: Identifying the result that your startup aims to achieve is the first goal when implementing any digital transformation strategy. Understanding what your startup is trying to accomplish with the integration of these innovations is important. The reason why these innovations need is relevant for your business is also another cause to understand
ii: Metric for measurement: collecting data to visualize the business process and operation transformation will achieve the target is also important. this metric collection should include data like time, cost of transformation, mode of integration among others
iii: Stakeholders: the stakeholders in the digital transformation journey are important to provide feedback and know their roles in the transformation journey. It is important that all shareholders in the transformation process work well to deploy and integrate these new technologies

  1. Business Models

Startups oftentimes bring new models useful for carrying out business in today’s world. Re-inventing the business models is one of the various ways through which new startups penetrate the market. By reinventing the model for businesses, startups can achieve and lead the digital transformation journey that becomes necessary for the business.

READ ALSO: How to Get Investment for Your Startup

Strategically, startups stand to benefit the most from a radical business model shift with new technology. Startups are small entities that can change their business model with little or no negative effects. Since startups are just growing up and scaling vertically, they can integrate these new technologies and models. These positions them to lead the growth and enjoy all the opportunities for growth.

  1. Organization transformation

Digital transformation does not only affect the technologies and products, it directly aligns with organization efforts and values. Although there might be slow adoption of digital transformation solutions, a comprehensive effort from the organization will encourage and advance the digital transformation journey.

The formulation of clear goals and targets for transformation is a clear communication strategy throughout the organization. These clear and smart goals need to be clear throughout the organization to foster a seamless integration of new technology and business strategies.

  1. Domain Opportunity

The redefinition of new technology shapes products and services while blurring out industry boundaries that may exist. Domain transformation typically occurs when the solution from a business becomes applicable to other industries. This has enormous potential to revolutionize the inner workings of industries and create new opportunities for startups.

The obvious example of the perfect domain opportunity that is currently in play is cloud technologies. These computing powers from several servers were originally meant for companies that compute millions of data per second. Leasing out these computing powers to other companies that need to spin up computing engines in minutes became a completely new industry on its own. There are several other ways domain opportunity can redefine how a business provides services to its customers.

Digital Transformation Challenges for Startups

The challenge that comes with digital transformation for startups is something that is always coming. It is an unending cycle of what is new and how do we integrate it. The key aspects of facing these challenges and succeeding in integrating them into the business include:

1.  New development: the knowledge about what is new and the different want in the new market for new technologies is important. Startups need to question their business model, apply a more realistic business view and must be ready to undergo radical and continuous digital transformation
2.  Continuous experimentation: the continuous building of the ecosystem with partnership and creation of alliances for continuous adoption and integration of new solutions is important
3.  Vertical scaling: digital transformation requires redesigning of business models to enhance the growth and development of the business. Startups must be ready to scale to meet current set-ups or build a new spin-off of the current setup. This scaling challenge poises as a challenge that startups face in their digital transformation journey.

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