Information System Management Assessment
Assessment 1
Section 1
Digital transformation and the impact on business models as seen through an organisational and
industry perspective
Introduction
Technological advancement and entrance into the business fields have influenced various business
activities such as the business models (BMs). It has enabled new forms of cooperation between
companies which has led to the rise of new products and services. It has also led to increased new forms
of company relationships between the employees and customers. Digital technology has forced the
entrepreneurs to reconsider their business models. Various businesses and companies have different
business model depending on the line of product and services that they are going to offer. A business
model can therefore be described as a business plan that will help I in making profit. It is used in
identifying the products or the services that the business plans to offer, identifies the business target
market, and the business expected expenses. The most common business models are considered as
business types. They include direct sales, franchising, advertising-based, and brick-and-mortar stores.
Over the past few years, industries have not only faced technological changes but have also have been
presented with various challenges such as rapid technological change, increased complexity and changes
in the customer preferences and legal requirements. On the positive side, organisations due to
technology have ha an opportunity to be flexible, reactive and produce products that have been
individualized. It is therefore clear to say that although there are new technological opportunities, there
still uncertainties in the process of implementing and use technology simultaneously in term of product
and service production.
Digital transformation or digitalization is the process through which organisations converts their
analogue data into digital data. Digitalization has been brought about by the technological advancement
and the rise of data mining where organisation can now get information about their customers. It is a
framework through which organisation are exploring the opportunities that exist in the digital world. It
therefore helps in the transformation and the restructure of the economies, institutions and society on a
system level. Digitalization combines several technologies e.g., the crowd technologies, sensors, big data
in order to open up unforeseen and unpredicted possibilities and offer the potential to create new
products services and business model. Due to the usage of the new technologies, companies are able to
achieve success, through optimized utilization of resources, reduced costs, increasing the productivity of
the employees and their work efficiency, optimization of the supply chain, increasing the customer
satisfactions and loyalties and many more ways.
Digitalization and the increase in the number of opportunities that it brings to the organization has put
pressure on companies such that they have to critically reconsider their current business strategy and in
doing so identify and new opportunities and thus adapt one or all aspect of their business strategy to
cope up with digitalization. They may therefore decide on adopting a totally new strategy or even work
on the available strategy to adopt to digitalization. Digitalization therefore over the past few years have
become an important cog of influence on every industry as it impacts the corporate strategies and
