It’s simply unsustainable to run a 21st-century company on sticky notes and handwritten ledgers. With technology on our side, we can rethink the way we conduct business and interact with our customers as we move from paper to spreadsheets to advanced techniques for managing our business.  

“According to IDC, 65% of the world’s GDP is predicted to be digital by 2022. From 2020 to 2023, it is predicted that this will lead to direct investments in digital transformation totaling more than 6.8 trillion dollars (about $21,000 per person in the US). “ 

After reading this, you must be interested to know more about digital transformation? 

It is difficult to define digital transformation universally because it will take a different form for every firm. The process of integrating digital technology into every aspect of a business, which radically changes how businesses function and deliver value to customers, is known as “digital transformation.”    

For more info about Digital transformation and its domain, continue reading this blog. 

Top 5 reasons to opt for Digital Transformation 

Digitalized world: The world is becoming increasingly digitized, with new technologies emerging all the time.  

Customer Expectation: Digital transformation helps businesses, through the provision of individualized and multichannel solutions that satisfy customers. 

Continuous Innovation: Because of the bounds of digital technology, which can open new business models and revenue sources, organizations can now innovate and compete in new ways. 

Expanded market reach: Businesses can gain a competitive edge through digital transformation by being able to quickly react to unstable market conditions. 

Reduced cost: By automating laborious procedures, enhancing supply chain effectiveness, and streamlining corporate operations, digital transformation can assist firms in cutting expenses. 

Now, Let’s move to the core part of our blog!! 

The 5 things that transforms your business in the name of “Digital Transformation” 

5 Domains of Digital Transformation

Now if you are ready to opt for Digital Transformation, let me highlight the five pillars of Digital Transformation that are five key areas of a business that can be transformed using digital technologies to improve efficiency, productivity, and innovation. They act as a framework to guide organizations through the process of digital transformation. 

5 Domains of Digital Transformation  

  • Business Model Transformation 
  • Process Automation and optimization 
  • Digital Product and Service Innovation   
  • Employee Empowerment and Engagement
  • Customer Experience 

Let’s have a look at the 5 domains of Digital Transformation in detail. 

  • Business Model Transformation 

Business model transformation is the process of radically changing a company’s operations in order to improve performance and better respond to market developments. Big data analytics, artificial intelligence, machine learning, and the Internet of Things (IoT) are a few examples of the technologies that can be used to do this. 

The goals of Business model transformation would be to react to shifting market conditions and customer needs, which favor a responsive, agile, and customer-focused organization.  

To understand better, Let’s have a look at the example of The Walt Disney Company.  With its television and movies facing disruption, Disney adapted its own entertainment channel, the Disney + streaming service, which has also been very successful. The parks now allow visitors to make payments, manage reservations, and enter their hotel rooms using the MagicBand. Each visitor is then identifiable by MyMagic + straps, which offer them unique experiences. 

  • Process Automation and Optimization   

Process automation and optimization are methods for streamlining and enhancing corporate processes to make them more dependable, efficient, and effective. 

It involves using applications, systems, and tools to speed up laborious, repetitive operations while lowering the possibility of human error whereas, optimization is the practice of examining current business procedures to find inefficiencies, obstacles, and potential areas for improvement. 

Businesses can reap big rewards from process automation and optimization, including cost savings, increased productivity, improved accuracy, and higher customer satisfaction. 

An example of this is Adidas, who is a master at it – Adidas improved its operational efficiency by 60% by standardizing procedures and making their platform user-friendly to bring automation across several divisions of their business. 

  • Digital Product and Service Innovation 

Digital products and services innovation refers to the invention and development of new or enhanced products and services that make use of digital technologies and capabilities.   

As consumers and markets call for more tailored and practical solutions, it is becoming more and more significant in today’s business environment, which is continually evolving. Companies are better positioned to compete and prosper in their respective industries when they can successfully use digital technologies to generate cutting-edge products and services.  

Let’s have a look at the Success story of the world’s largest cosmetics company, L’Oreal, which has prioritized digital transformation, calling it a “genuine revolution” that is “completely transforming our ways of living, consuming, communicating, and working.” The business offers augmented virtual reality services that let customers use the cameras on their smartphones to test out things right at the comfort of their home. 

  • Employee Empowerment and Engagement 

The process of empowering people to make choices and take actions that have an impact on their work and the organization is known as employee empowerment.  

Contrarily, employee engagement refers to the psychological and emotional bond that workers share with their jobs, their coworkers, and the company.  

For fostering a supportive and effective work environment, engagement and employee empowerment are both crucial. Employees who feel more immersed in their work and more devoted to the organization tend to be more engaged, which can result in higher levels of engagement. In a similar vein, motivated staff members are more inclined to embrace efforts aimed at empowering them and accept responsibility for their work.  

Here we are with a real-time example of Starbucks, which recognizes the value its employees add to the company, whether it’s making a customer smile or fostering steadfast customer loyalty. In fact, this is the reason why 87% of customers prefer Starbucks because of the way the firm treats its staff. 

  • Customer Experience 

Customer experience is related to the methods used to enhance and improve the general experience that customers have with a company or organization. Digital technology and procedures are employed in this way. 

The capacity to gather and analyze consumer data to acquire insights into their behaviors, preferences, and wants is a crucial element of digital transformation. The creation of customized experiences that live up to customer expectations and foster loyalty can be done using this data. Businesses may increase their competitiveness and put themselves in a position for long-term success by giving the customer experience priority in their digital transformation initiatives. 

Example – For good reasons, Zappos is a market leader in customer satisfaction, as it has a strong customer-first culture that promotes happiness and aims to provide people with the freedom to be who they are. The CEO has given every member of staff the freedom to assist the customer however they see fit. Thus, favoring Zappos to stand apart. 

Final Thought  

Companies must rethink their strategy and operations across these five domains as part of the crucial transformation process. The companies that can produce new and creative products and services, operate more effectively, and satisfy their consumers’ changing requirements will only be able to successfully navigate the digital terrain. 

If you are looking for the right person to guide you through this entire process, the experts at KaarTech are right here for you. Our team of digital transformation consultants is here to assist you by doing various evaluations and assisting you in selecting the best transformation path. They have decades of expertise in managing multiple transformation projects. 

The best insights are also available via our transformation accelerator, KTern.AI which is a KaarTech solution that is intended to use automation and AI to assist businesses in successfully implementing digital transformation. 

Want to know more about KaarTech and its SAP services? Reach us through our website.



What are the 5 domains of digital transformation?

The five domains include Business Model Transformation, Process Automation and Optimization, Digital Product and Service Innovation, Employee Empowerment and Engagement, and Customer Experience.

Why is Business Model Transformation crucial in digital transformation?

Business Model Transformation allows companies to adapt to market shifts and changing customer needs. It involves integrating technologies like big data analytics, AI, and IoT to create agile and customer-centric organizations.

How does Digital Product and Service Innovation impact businesses?

Digital Product and Service Innovation involves leveraging digital technologies to create new or improved products and services. This innovation helps companies cater to evolving consumer demands, staying competitive and thriving in dynamic markets.

Why is Employee Empowerment vital in the digital transformation journey?

Employee Empowerment fosters an environment where employees are engaged and motivated, driving innovation and productivity. It involves empowering individuals to make impactful decisions and enhancing their connection to their work and the organization.