Everyone is talking about Digital. But, what exactly is it?

To put it simple, it is the competition between consumer and enterprise technologies.

The invention of a microprocessor changed it all in 80s. The mere possibility of performing certain critical but repeatable tasks at an unthinkable pace changed it all (e.g., accounting and book keeping). The idea raised the curtain for Information Technology age. But, this did not change much for the business consumers. Businesses became more predictable i.e., business habits were streamlined (e.g., the way you plan for a production batch). Standardization at the cost of responsiveness. Customers did not have much choice too (read customization) as they were technologically less mature than the companies.

Back in early 2000s, with the possibility of internet, a some power was put in the hands of consumers this time. Some businesses such as Amazon took this opportunity and started playing an intermediary between many small scale producers and the consumers. Consumers treated these companies from a convenience, affordability and responsiveness standpoint.

2007 changed it all again. When the first smart phone was released little did people realize it was going to change the very way we interact again.Less than seven years later, Consumer technology was out competing the enterprise technology.

Enterprise technologies are losing in the competition with technologies in the hands of consumers. Consumer expectations are increasing at a pace faster than they could be satisfied. Many of us are frustrated with simple things such as, I can’t find the customer service number for my Telco on their website, huh! Thank god I can google it.

Those companies that can talk to people in the new age tech language are gaining ground. For them missing is the enterprise “sunk investment” baggage. They got the advantage of NOT dealing with organizational inertia (changing organizational habits) and get to simplify business processes to reach to the consumer fast. Lastly, scale comes cheaply now.

All these are pushing the large and old businesses that are operating at a scale to compete with the new startups.Therefore, most businesses want to undergo the digital transformation themselves. They must either match up with the consumer technologies or out compete with them. This to me is coined as Digital transformation.