Is Digital Transformation a Necessity for Succeeding in Competitive Industrial Environment?

Is digital transformation a necessity for succeeding in competitive industrial
environment
With the success of organisations like Amazon a new standard has been set in business
which signifies that digital technology is synonymous to competitive advantage. Without
transforming and adopting to digital services organisations cannot withstand the changing
business dynamics and rivalry in the industry (Calvino and Criscuolo, 2019). With rapidly
changing perceptions, social and life style changes customers are demanding quick service
models such as instant and flexible shopping, heavy discounts and gift vouchers as well as quick
delivery. Meeting these expectations is challenging for firms and is possible only with suitable
integration of digital technology.
Figure 1: Digital transformation
(Source: Schulz, 2019 )
Effective utilisation of technology for retaining customers as well as accomplishing
global expansion has concluded that without technology or digital adoption organisations cannot
survive in the competition. With digitalisation each organisation is achieving new milestones of
success. Amazon is its well-known example. In response of this other competitors like Tesco,
Unilever, Marks & Spencer are also shifting from traditional shop or store format to digitally
operating platforms.
Contemporary business models and services transforming to innovative and quick delivery
approaches. Innovation and quality improvements are not possible without considering the
automation or the effectiveness of digital tools such as social media marketing, emails, customer
interaction, real time data as well as cloud computing. If organisations do not respond quickly
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towards these aspects, then there are greater possibilities and risk of losing their valuable
customers and talented resources. It will directly affect the service or product quality as well as
the performance of firm in financial market. Hence for sustaining a competitive position in the
industry organisations have to now deal with the upcoming as well as ongoing digital platforms
and related challenges and opportunities (Kirchmer and et.al., 2016). Negligence to such
platforms can make brand perception weaker and thus in long term organisations may face very
limited network for their existence. Thus organisations must essential transform to digital
network for making a success in their relevant industrial sector. However, this transformation
without suitable leadership and consideration of customer perception can be harmful for the
growth. Digital technology is also vulnerable to several limitations and threats which can have
adverse impact on performance of firm. Thus a good leadership is required to balance both
opportunities and threats in this innovative solution for the business.
Figure 2: Benefits of digital transformation
(Source: What Is Digital Transformation in Business, and What Advantages Does It Have?.,
2021. )
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