{"id":7504,"date":"2021-04-30T08:58:15","date_gmt":"2021-04-30T08:58:15","guid":{"rendered":"https:\/\/www.allgeier.com\/en\/?page_id=7504"},"modified":"2025-02-06T13:47:01","modified_gmt":"2025-02-06T13:47:01","slug":"was-ist-digitale-transformation","status":"publish","type":"page","link":"https:\/\/www.allgeier.com\/en\/blog\/was-ist-digitale-transformation\/","title":{"rendered":"What Is Digital Transformation? What Business Leaders Need to Know"},"content":{"rendered":"

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Digitalization is challenging many business areas that have been set in stone for decades. Instead of predictable innovation cycles,\u00a0disruptive changes<\/strong>\u00a0are occurring that can devalue or even render obsolete currently successful business strategies within a few years. At the same time, digital transformation opens up an abundance of new possibilities that will enable you to successfully navigate your way into the future. In order to exploit these opportunities, it is essential for modern managers to understand\u00a0the mechanisms behind digital change<\/strong>.<\/p>\n

The Essence of Digital Transformation<\/h2>\n

Computers, networks and software: digital technologies are penetrating all industries, business areas and processes, tearing down old structures and defining new requirements. However, the impact that digitalization is having does not end there. It\u2019s not just turning companies upside down, it\u2019s transforming the business world as a whole and beyond. It is working its magic on pretty much all social processes: the way we work, move, consume and communicate.<\/p>\n

Digital transformation describes the comprehensive effects that this change is having on our business world<\/strong>. It challenges companies to reflect on how digital technologies are revolutionizing not only\u00a0operational business processes, but also business models, value chains and markets<\/strong>. When dealing with this topic, however, it is necessary to be clear about what is characterizing this change.<\/p>\n

1. Digital transformation cannot be stopped<\/h3>\n

The efficiency and penetration of digital innovation have progressed so much that we have crossed a threshold at which there is no turning back. For example, no company can efficiently manage its business processes without an\u00a0ERP system<\/a>\u00a0or reliably handle customer data without\u00a0IT security<\/a>. Future challenges such as the regulation of traffic and goods flows will not be solved analogously. Consumers will continue to use mobile devices and demand virtual shopping experiences. The\u00a0interdependence of digital systems\u00a0<\/strong>has now reached a level of complexity where there will no longer be any solutions without technology-driven data processing.<\/p>\n

2. Digital transformation accelerates all processes<\/h3>\n

As early as 1965, the co-founder of Intel, Gordon Moore, predicted that the complexity of computers would double every one to two years. Although this development has slowed down somewhat in recent years,\u00a0Moore\u2019s law<\/strong><\/a>\u00a0points to another characteristic of digital business: it is exponential, rather than linear. The improvements in computing power, memory capacity and transmission speed today enable digital solutions that seemed unthinkable yesterday. In addition, growing levels of digitalization mean that new products and services are establishing themselves in practice more and more quickly.<\/p>\n

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Half a century ago, the life expectancy of a firm in the Fortune 500 was around 75 years. Now it\u2019s less than 15 years. (Source:\u00a0<\/i><\/strong>Harvard Business Review<\/i><\/strong><\/a>)<\/i><\/strong><\/p>\n

3. Digital transformation is dynamic and cannot be calculated<\/h3>\n

There were hardly any market observers out there that anticipated the sustained success of tech companies like Google, Apple and Amazon. The accelerated innovation speed of digital transformation makes it increasingly difficult in many industries to assess\u00a0developments and trends in the medium or long term<\/strong>. In addition, the digital-driven start-up culture is attacking established players with venture capital and exploring new business models and opportunities for value creation across the board. As a result, we are now seeing\u00a0disruptive upheavals<\/strong>\u00a0that lead to\u00a0cross-sector competition<\/strong>\u00a0and the emergence of powerful\u00a0megaplayers<\/strong>\u00a0in newly emerging market segments.<\/p>\n

How Information Technology Drives Transformation<\/h2>\n

IT is the engine of digital transformation. Digital products and services offer modern managers the opportunity to break down established processes at all levels of the company in order to become\u00a0smarter<\/strong>\u00a0as an organization. This means, for example, designing products more precisely and with a shorter time-to-market, making operational processes more efficient, winning new customers, opening up new markets and implementing more effective supply chains.<\/p>\n

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Digital transformation technologies provide valuable tools that help businesses master the digital transformation challenge.<\/i><\/strong><\/p>\n

The most important technologies of digital transformation at a glance:<\/p>\n