How a company's global competitiveness could strengthen/secured through digital transformation?

 Digital transformation:

In today's digital world, organizations need to embrace digital transformation to remain competitive and meet consumer expectations. The adoption of digital technologies has disrupted various industries and caused traditional firms to struggle to keep up with innovative digital entrants. For example, online sellers like Alibaba and Amazon have had a significant impact on traditional retailers, while streaming platforms like TiVo and Netflix have disrupted the TV and film industry.

Digital transformation involves the development of new business models to adapt to the changing landscape. This transformation can be achieved through four constructs: re-engineering, restructuring, renewing, and regeneration. These constructs help organizations compare their old competencies with present and future challenges and seize new opportunities.

The need for digital transformation arises from increasing communication technologies, such as the internet, smartphones, and cloud computing, which have highlighted the importance of e-commerce. Emerging technologies like IoT, blockchain, AI, and robotics also influence businesses to transform digitally. These technologies can optimize logistics, reduce supply chain costs, and replace old technologies, impacting the organizational cost structure.

Digital transformation has also dramatically changed global competition, especially in the retail industry. Information-rich firms like Amazon, Apple, Google, and Alibaba have gained a competitive advantage through their digital structure. Consumer attitudes and behavior have also been affected, with online purchasing and the use of social media and search tools significantly impacting offline sales. Consumers rely on AI-based technologies and apps, leading organizations to adopt these technologies to attract and compete for customers.

Global competitiveness is crucial for both countries and companies. Digital transformation brings competencies such as entrepreneurial orientation, international knowledge, marketing capability, innovation capability, and learning capability. By transforming their business processes and activities, companies can effectively engage customers at every touchpoint, resulting in increased competitiveness.

Some inspiring case studies of digital transformation include Amazon Business, which provides a seamless customer experience in the B2B business environment through features like two-day shipping, discounts, and streamlined purchasing systems. Audi introduced Audi City, an innovative showroom concept that provides a unique brand experience to customers by showcasing their entire catalog in city centers with minimal physical car inventory.

Digital transformation is an ongoing, long-term objective that requires organizations to adapt and evolve continuously to thrive in the digital world.