Did you know Netflix used to sell DVDs via email when they started in 1997? Today, they have a subscriber base of 300 million with valuations reaching $400B, ahead of most other subscriber platforms.
Did you also know that Netflix is rapidly entering into the Gaming industry that’s growing at a tremendous pace (CAGR 13%)? Their growth is bound to increase as they understand the essence of digital transformation that has made them such a giant since its inception.
The same applies to Indian startups like Ola, Zomato and Blinkit. Technology is a way of life in the 21st century and people need instant discoverability and convenient solutions that cater to their personalised needs.
How numbers support the claims –
- Worldwide expenditure on Digital Transformation is about to reach $3.9T by 2026.
- World Economic Forum predicts that the Global Economy will add $100T by 2025 by Digital Transformation.
This is not imaginary, these are factual numbers from trusted platforms like Statista and World Economic Forum. This is just the tip of the iceberg. Some of the heavily invested areas of Digital Transformation are –
- Artificial Intellegence
- Cloud Computing
- Digital Ecosystems (Websites, Apps, Software etc)
- Digital Marketing and Data Analytics
- Marketing Automation
Data is oil and Digital Transformation will revolutionize business models from intellect-centric to data-centric models. Moreover, the evolution of Generative Artificial Intellegence and Artificial Intellegence will boost the digital ecosystems in the years to come.
Top Beneficiary Industries of Digital Transformation
Retail
Retail businesses are progressively inducting eCommerce business models to reach more audience, build trust with online shoppers and drive more sales. This is proving to be successful and has led to a new business category as D2C (Direct to Customer). Conscious Chemist, BlueTea, and Minimalist are some new-age D2C brands that have aced Digital Transformation and are growing successfully.
Banking
The banking industry has certainly gained the most with the rapidly-growing digital infrastructure. Banks today offer interactive Apps & Websites with amazing UI & UX for their customers. Everyday transactions and banking activities have become seamless and provide convenience at its best.
Travel, Hospitality and Events
Every travel planning begins with a search on the web. Hotels, cruises, flights, buses, events you name it, and can be found and booked through the web. From aggregators to independent websites and apps, all frequent and occasional travelers engage with these platforms for their travel bookings. Travel businesses were amongst the first beneficiaries of digital transformation and travelers across the world enjoy seamless bookings 24×7.
Softwares
The Software Industry is one of the front runners in Digital transformation. They are mostly enablers of it rather than the beneficiaries. However, earlier innovations work as foundational grounds for new age Software startups and thus, helps in accelerating the development and execution. Software as a service (Saas) is a vast and growing industry, its implementation has increased with newer use cases of Generative Artificial Intellegence.
Others
Other beneficiaries of Digital Transformation includes Media and Entertainment, Mental health treatment, and creator economy which is thriving with minimum investments and exceptional returns.
Why Digital Transformation of business is essential in 2025 and beyond
Meet customer expectations
Having a functional website or app is no more about leveraging the first mover advantage; its about staying competitive in the market and meeting your customer expectations. The world is rising to a position where convenience is everything. Buyers are ready to pay for convenience and things which are labeled as sustainable, eco-friendly and organic . The point is to give them an experience which feels premium and valuable to them.
Mercedes Benz India is working on a model to shut showroom-only model and is offering customers to configure and shop online their favorite cars. Additionally, dealers will not be required to purchase inventory thus, cutting unnecessary friction and costs between the buyer, dealer, and the company. All this is possible because of the robust digital ecosystem developed by Mercedes to enhance convenience for all parties. Mercedes Benz India is the first automobile company in India to implement such an innovative model.
Data-driven Decision Making
Let the data speak for themselves. This is the beauty of Digital tools which enables management and marketers to plan, execute, monitor and optimize better strategies. See here, the types of data analytics you can see with Digital Transformation –
- Number of Customers
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- Number of New Customers
- Number of Returning Customers
- Number of bounced prospects
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- Marketing Data Analytics
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- Number of Users
- Traffic Acquisition Analytics
- Traffic Engagement Analytics
- Average Customer Value
- Website Traffic Analytics
- Heatmap data
- Social Media Insights
- Advertisement Data
- A/B Testing Data
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- Marketing Financial Analytics
- ROAS (Return on Advertising Spend)
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- CPC (Cost Per Click)
- CPM (Cost Per Mile)
- ROI (Return on Investment)
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- Operations Data
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- Shipment Data
- Inventory Management
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- Financial Analytics
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- Invoice Automation
- Insurance Management (in case of exports)
Such data points can help marketers and decision makers take ‘needle-moving’ decisions which are crucial for the business.
Enhanced Business Visibility
Your potential buyers are already searching for you on the web. India is on a rising trajectory of increasing disposable income, higher credit card usage for lifestyle products and experiences. All you need is a Minimum Viable Product MVP if you are just starting out, a USP and a good Digital Marketing campaign.
Doing this in the right way will give you the following –
- Buyer Persona
- Target audience segment
- Target geographies
- Channels of Promotion
These data points will help you optimize your next set of campaigns better and will improve your brand’s online visibility. It would be wrong to expect wonders from the first campaign itself as succeeding via Digital mediums is a long game and demands resilience, patience and the right marketing parter who understand marketing fundamentals.
Helps you build a brand
Zomato started in 2008 as a restaurant listing platform and became a brand like none other in India. Everyone loves Zomato for distinct reasons. Feels like they are doing everything right but the other side of the coin is that they suffered huge losses for 16 long years. Zomato experimented several things by burning millions of rupees of investors to understand the right target market. In fact Zomato didn’t had the target market back then. It was a new category creation which it successfully created and earned the first profits in FY2023-2024.
Zomato is as an App and a website. These digital assets are live example of why Digital Assets and digital transformation is essential for a growth-oriented business. Internet and smart devices are part of everyday life and if you have something amazing and unique to offer, you should get your hands on it.
Foundational Steps to Digital Transformation
Identify your goal
It is important to identify your digital transformation goals before starting. After all, its not just about adopting new technology. It’s also about ensuring that digital transformation meets your business requirements.
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- Identify your business needs – Do a SWOT analysis and identify opportunities where digital transformation could
- Save your time
- Save your effort
- Helps you increase business revenues
- Set KPIs – Set KPIs for different goals and plan their execution. KPIs will help you identify areas of improvements.
- Identify your business needs – Do a SWOT analysis and identify opportunities where digital transformation could
- Be open to upgrade – It is likely that additional things are required in the later stages of Digital Transformation. Be open to suggestions and if feasible, go for it.
Find possible platforms
Hire a consultant and discuss possible areas for Digital Transformation. A professional Digital Transformation consultant and a Digital Marketer can identify opportunities and suggest based on your industry requirements. Digital Marketing consultants work with businesses in diverse industries and will be able to suggest you the best thing for your business.
Foster digital-first culture
Your teams must have an innovative mindset then only will be able to thrive with the digital systems. Digital systems encourage teams to streamline and automate processes, holds stakeholders accountable, set timelines, enhances team collaboration and ultimately leads to increased productivity.
It is likely that we incorporate digital ecosystems, teams will be required to undergo essential trainings and hands on experience. This is crucial and will ultimately help the business.
Implement then scale
Assume you own a professional Gmail or Outlook account. You realise its benefits and now want to expand it for your exports and sales team as well. This is how Digital transformation takes place. It doesn’t happen in one go. It is a procress and based on the benefits are expanded into a wider horizon.
Monitor and Optimize
Once your digital ecosystem are put into place, its time to monitor and optimize the results. Stay committed to improvements with optimization and you will reap its benefits for sure.
Common challenges you will face –
Resistance to change
Human beings are creatures of habits. However, since the age of Mesopotamians, humans have strived for becoming better every passing day. In the age of internet and digital ecosystems, teams must grow beyond their old mindset and think from modern day’s perspective. Most of the businesses face the problem of resistance to change from their teams and management. Not upgrading is losing in the future, if not present. Hence, cultivate a habit of innovation and growth in your teams to successfully implement digital transformations and ecosystems.
Lack of Skills
The point above and this are two sides of the same pole; one leads to the another. Teams working on conventional ways finds it hard to upgrade their skills and become technically rich. This is often seen with resistance. Also, at times, the top level management is not aware or doesn’t feel the need of upgradation because they find it hard to update their skills.
Lack of Budget
Businesses with limited revenues may find it hard to fund digital transformations in their business model as integrating these can be costly. Along with fixed costs of development, there are some recurring costs as well such as subscription renewals, paid plugins etc.
Hire Nueva Digital Solutions and make it happen
With dedicated teams of Website design & development, marketers and software experts, you can count on us to re-structure your business and implement digital transformation. We have served over 60+ clients with our best digital transformation and digital marketing services. Reach out to us at hello@nuevadigital.co.in
