Innovation in business involves the development of new features, products or services that help you stay at the forefront of your market. The goal is to stay ahead of your competitors so that you can provide what customers want before they do. Innovation could also mean upgrading existing products to improve their value or reduce costs.
Digital transformation is a more comprehensive approach to integrating the latest technologies into the business strategy and process. The process reviews the business and enhances its offerings in terms of product and technology stack to capture growth opportunities triggered by changing customer expectations.
Customers want to be able to do business and live their lives online at any time, on any device and to have all the information as well as the apps and devices they need. This has led to a proliferation of business models that rely on mobile technology and a growing ecosystem of noncompetitive companies that allow users to connect to their services using APIs. This is also enabling businesses that once produced and sold their own products to move into service-based delivery, such as software-as-a-service offerings like Microsoft 365 or subscription-style services for household items, entertainment or fitness devices.
Integrating digital technology into operations and business processes can improve efficiency and create customers with a better experience. It also gives companies an opportunity to identify potential business opportunities in the future and adapt quickly. For instance, Uber saw an opportunity in food delivery when it modified its ride-sharing model to permit regular people to become food delivery drivers with their existing smartphones. Digital transformation requires employees to be trained on new technologies and redesigning business processes.
