They outline steps for adapting to changes in the business environment<\/a>. This structured approach increases the chances of achieving better outcomes.<\/p>\n\n\n\n This article will help you understand the eight main digital transformation models. Each model provides a unique framework for approaching digital change<\/a>. We will also look at five businesses that have navigated digital transformation. These examples will show you how to apply digital transformation and what it can achieve.<\/p>\n\n\n\n These models focus on developing a strategy for digital transformation<\/a> and keeping it in line with long-term business goals.<\/p>\n\n\n\n Each pillar is critical to achieving business readiness<\/a>. <\/p>\n\n\n\n McKinsey’s Six Building Blocks framework exemplifies this approach. <\/p>\n\n\n\n It breaks down digital transformation into six essential components:<\/p>\n\n\n\n These models break down digital transformation into stages, each with specific goals.<\/p>\n\n\n\n In this scenario, digital transformation happens in stages. Each has its specific goals and deadlines. <\/p>\n\n\n\n The usual steps are:<\/p>\n\n\n\n For example, a company might start by improving data use. They\u2019d review customer data and create a central database. Planning involves choosing the right system and making a communication plan. They\u2019d also set up a team to manage changes.<\/p>\n\n\n\n Next, they start the project on schedule. Feedback helps refine the system. If it\u2019s successful, they can apply the same approach to other areas like boosting sales.<\/p>\n\n\n\n These models evaluate the organization’s digital maturity<\/a> and guide improvements.<\/p>\n\n\n\n A capability maturity framework helps companies focus their digital transformation. It assesses maturity levels in areas like data use and technology adoption<\/a>.<\/p>\n\n\n\n Stage 1: Beginner:<\/strong> These companies are at the beginning of their digital journey. They need better collaboration and a better use of data.<\/p>\n\n\n\n Stage 2: Developer:<\/strong> Here, teams begin sharing data, automating tasks, and improving operations. But some inefficiencies remain.<\/p>\n\n\n\n Stage 3: Collaborator: <\/strong>All parties share data across the company, guiding decisions. Teams work together, focusing on using data to capture opportunities.<\/p>\n\n\n\n Stage 4: Continual Improver:<\/strong> This company focuses on ongoing improvement and growth. It has collaborative teams and constantly evaluates processes to boost efficiency.<\/p>\n\n\n\n These models emphasize innovation, creativity, and user-centered approaches to drive digital transformation.<\/p>\n\n\n\n It uses new processes and technologies to stay flexible and competitive. A key example is design thinking<\/a>, which focuses on understanding customer needs.<\/p>\n\n\n\n The process has six steps:<\/p>\n\n\n\n This process ensures innovations match customer desires, not only data or instinct.<\/p>\n\n\n\n These models focus on optimizing and transforming operational processes<\/a> through digital technologies.<\/p>\n\n\n\n The goal is to improve efficiency and remove unnecessary steps. Kanban<\/a> is a tool that helps manage tasks by showing their status.<\/p>\n\n\n\n Today, Kanban is often used online, making it easy for the whole team to see a project’s status. Everyone can see where a task is, who worked on it last, and what needs to happen next. Kanban started at Toyota to communicate needs between departments.<\/p>\n\n\n\n A team working on a digital project might use Kanban to stay organized. They might use a simple whiteboard with columns. You can label these as ‘To Do,’ ‘Doing,’ and ‘Done’ (Waiting, In Progress, and Complete). Tasks can move through these columns as they progress. This allows team members to track updates without frequent meetings. <\/p>\n\n\n\n These models focus on transforming specific business domains. You can also use it to enter new markets through digital means.<\/p>\n\n\n\n Business domain transformation<\/a> involves a company expanding to new markets. This helps companies innovate and adjust to changing conditions.<\/p>\n\n\n\n For instance, a casual clothing company could start renting designer outfits. This new rental service would fit the store\u2019s brand but target a different customer need.<\/p>\n\n\n\n To improve this new service, the store could use AI to suggest outfits based on what customers like. This would make renting clothes more personalized and easier.<\/p>\n\n\n\n Another example is a company that created software to improve its own processes. If it starts selling it, it will become a new income source and help others with the same technology.<\/p>\n\n\n\n In both examples, companies are moving into new areas to grow and succeed.<\/p>\n\n\n\n These models categorize various aspects of digital transformation into specific taxonomies or frameworks.<\/p>\n\n\n\n Categories include:<\/p>\n\n\n\n This approach helps companies pick which projects to start based on their benefits.<\/p>\n\n\n\n For example, if a company gets customer complaints, it must focus on business impact. They would first analyze the complaints and set goals, such as faster response times.<\/p>\n\n\n\n Next, they would gather feedback from the customer success team and train employees to handle complaints better.<\/p>\n\n\n\n As they progress, they might focus on other areas, like using AI to improve customer service.<\/p>\n\n\n\n These models view digital transformation as a continuous process with distinct lifecycle stages.<\/p>\n\n\n\n This model guides companies through stages to keep improving. <\/p>\n\n\n\n These stages are:<\/p>\n\n\n\n This practice also helps companies stay current with digital tools. For example, a company might start using AI for payroll. Later, it could use AI to write sales notes. Then, it might use AI to suggest products to customers based on what they bought before.<\/p>\n\n\n\n Here are some companies who’ve used digital transformation models well:<\/p>\n\n\n\n After COVID<\/a>, Lego had to change its physical stores. They kept people safe with masks and space rules. They added fun new things in store for grown-ups, like a table that tells stories.<\/p>\n\n\n\n They also made a place where people can make Lego figures in their likeness.<\/p>\n\n\n\n Lego’s new ideas<\/a> help four groups: buyers, shoppers, business friends, and workers. They have also built online platforms for kids and adults, which help families and friends build Lego together.<\/p>\n\n\n\n DHL uses new tech<\/a> to work smarter. It tracks packages throughout the journey and gives updates right away. This helps DHL find the best routes and check things like temperature.<\/p>\n\n\n\n DHL also uses advanced technology to automate logistics. This helps move things faster and safer.<\/p>\n\n\n\n It further advanced operations with data analytics and machine learning<\/a>, which helps DHL respond quickly to changes. They can also split up work and do tasks without people.<\/p>\n\n\n\n All this new tech makes DHL’s work better. It also helps keep workers happy, so fewer people quit.<\/p>\n\n\n\n Sephora makes shopping better with new tech<\/a>. Their app has smart tools to help customers. You can try on makeup without really putting it on, and you can also share your looks online.<\/p>\n\n\n\n The app shows how makeup looks on a virtual face before you buy it. You can even smell perfumes without spraying them. There’s also a test to find makeup that suits you.<\/p>\n\n\n\n Sephora has a rewards program, too. Customers play fun games to earn points, which helps Sephora learn what people like. Then, Sephora can make shopping more personal for each customer.<\/p>\n\n\n\n IKEA uses new tech to work better and help customers in person and online<\/a>.<\/p>\n\n\n\n They use smart robots and drones to count what’s in stores. By 2023, IKEA had over 100 drones in 16 places in Europe. Drones can help you understand what’s in stock and where to put things.<\/p>\n\n\n\n IKEA also made a smart helper for shopping online in 2024. It tells customers if items are in stock and helps you buy them.<\/p>\n\n\n\n IKEA cares about the earth, too. They buy back old furniture from customers<\/a> and then sell it again as used items. This innovative practice helps less stuff go to waste.<\/p>\n\n\n\n COVID-19 made Disney change its plans. It started Disney+, a new streaming service<\/a>. Disney+ did well, so the company made it a big focus. They worked hard to make Disney+ better than other streaming sites. <\/p>\n\n\n\n More people started watching Disney+, even with new rivals. Streaming helped Disney work better and keep up with others. Disney bought 21st Century Fox for $71.3 billion<\/a>, which strengthened Disney. Now, Disney keeps growing around the world.<\/p>\n\n\n\n Digital transformation is key to staying competitive, improving customer experience<\/a>, and boosting operations. It also drives innovation and helps adapt to market changes. Choosing the right transformation model is crucial. It should fit your organization’s specific needs and goals.<\/p>\n\n\n\n1. Strategic models<\/h2>\n\n\n\n
Example: McKinsey’s six building blocks<\/h3>\n\n\n\n
\n
2. Phased\/stage models<\/h2>\n\n\n\n
![\"Phased\/stage](\"https:\/\/www.walkme.com\/blog\/wp-content\/uploads\/sites\/2\/2024\/09\/stage-models_2966ed5f.jpg?w=1024&h=473&crop=1\")
<\/figure>\n\n\n\nExample: Altimeter’s six stages of digital transformation<\/h3>\n\n\n\n
\n
3. Capability and maturity models<\/h2>\n\n\n\n
Example: Capability maturity framework<\/h3>\n\n\n\n
4. Innovation and design models<\/h2>\n\n\n\n
![\"Innovation](\"https:\/\/www.walkme.com\/blog\/wp-content\/uploads\/sites\/2\/2024\/09\/Innovation-and-design-models_6466ed5f.jpg?w=1024&h=473&crop=1\")
<\/figure>\n\n\n\nExample: Design thinking model<\/h3>\n\n\n\n
\n
5. Operational and process models<\/h2>\n\n\n\n
Example: Lean transformation model<\/h3>\n\n\n\n
6. Domain-specific models<\/h2>\n\n\n\n
Example: Business domain transformation<\/h3>\n\n\n\n
7. Taxonomy and framework models<\/h2>\n\n\n\n
Example: Taxonomy-based model<\/h3>\n\n\n\n
\n
8. Lifecycle and evolution models<\/h2>\n\n\n\n
![\"Lifecycle](\"https:\/\/www.walkme.com\/blog\/wp-content\/uploads\/sites\/2\/2024\/09\/Lifecycle-and-evolution-models_866ed5fb.jpg?w=1024&h=473&crop=1\")
<\/figure>\n\n\n\nExample: Lifecycle evolution model<\/h3>\n\n\n\n
\n
Implementing digital transformation models: success stories<\/h2>\n\n\n\n
1. Lego\u2019s digital company transformation<\/h3>\n\n\n\n
2. DHL supply chain evolution<\/h3>\n\n\n\n
3. Sephora’s customer experience revolution<\/h3>\n\n\n\n
4. IKEA’s omnichannel strategy<\/h3>\n\n\n\n
5. Disney\u2019s shift to streaming services<\/h3>\n\n\n\n
Opt for the digital transformation model that is right for you<\/h2>\n\n\n\n