The Necessity of Digital Transformation in Competitive Industries

This essay explores the critical role of digital transformation for organizations aiming to succeed in today's competitive industrial environment. It highlights how the rise of companies like Amazon has set a new standard, making digital technology synonymous with competitive advantage. The essay argues that without embracing digital services, organizations risk falling behind due to rapidly changing customer expectations and business dynamics. It emphasizes the need for integrating digital technologies to meet demands for quick service models, discounts, and fast delivery. Furthermore, the essay discusses how effective technology utilization is essential for customer retention and global expansion. It also acknowledges the limitations and threats associated with digital transformation, stressing the importance of leadership in balancing opportunities and risks. Ultimately, the essay concludes that organizations must transform to digital networks to thrive in their respective industries, while also being mindful of customer perception and potential vulnerabilities.

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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With improving knowledge, skills and capabilities leadership vision has also been changing.
Leaders such as Jeff Bezos (Amazon) have vision to connect entire world instead of limiting
their services or expertise to any one geographical location. Such broad visions cannot be
achieved without digital technology and thus technology has become an essential aspect in
achieving competitive gain. Without digital transformation organisations may not be able to
compete with the market requirements and thus can fail to meet the consumer expectations. In
such cases the success of organisations is questionable (Rossato and Castellani, 2020). However,
this does not restrict the vast opportunities provided by digital services and in response of current
digitalisation organisations must adopt it quickly so as to remain active in the competitive race.
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REFERENCES
Books and Journals
Calvino, F. and Criscuolo, C., 2019. Business dynamics and digitalisation.
Kirchmer, M., and et.al., 2016. The value-switch for digitalisation initiatives: business process
management. BPM-D Whitepaper, Philadelphia, London.
Rossato, C. and Castellani, P., 2020. The contribution of digitalisation to business longevity from
a competitiveness perspective. The TQM Journal.
Online
Schulz, Y., 2019. Digital transformation benefits for your organisation. [Online]. Accessed
through < https://www.itworldcanada.com/blog/digital-transformation-benefits-for-
your-organization/416971>
What Is Digital Transformation in Business, and What Advantages Does It Have?., 2021.
[Online]. Accessed through <https://lvivity.com/digital-transformation-in-business>
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