Digital Transformation of a Business Segment

00:07 Let us now look at how the business sectors are being transformed by digital technology.

00:12 Digital change and transformation are ongoing processes.

00:17 For all of us, including society, the economy, organizations, and ourselves individually, change has become the norm.

00:24 The key idea is that once a new digital technology is created, it also serves as the basis for other new digital technologies.

00:34 Therefore, we have a spiral that is expanding and rotating more quickly; we can see this on all levels.

00:43 A digital infrastructure is one of the components of digital transformation.

00:48 We are discussing the expansion of broadband, data usage, and having fast Internet even in remote areas.

00:55 But we're also bringing up corporate digital value chains.

00:58 We're referring to fresh use cases, like programs that replace out-of-date software.

01:04 New business models are another topic we're discussing.

01:11 What does this entail for businesses? What does this indicate for your business? We will, as usual, examine the major Internet behemoths like Google that have thrived commercially despite not having a tangible product.

01:24 Perhaps it's not just about analogue or digital, though.

01:27 There are hybrid types of development as well, and it is these that we will now examine. The internet behemoth Netflix wasn't always a behemoth of the internet.

01:37 When the business was first established in 1997, they charged 4$ a unit to ship DVDs throughout the USA.

01:46 Customers didn't always return them as they ought to have, so they developed a 40$ monthly subscription modelled after gym memberships.

01:53 It took an incredible ten years for Netflix to begin providing movies online as well.

01:58 The consumer no longer had to wait three days for the mail to arrive because they could stream and view wherever they chose.

02:05 Netflix's warehouse logistics, which significantly reduces costs, are a major benefit. The spiral actually begins to rotate there.

02:14 That's because Netflix has been able to expand in addition to being active on a regional level. Today, Netflix is a worldwide service that is available in all nations. However, Netflix is interchangeable; they realized this for themselves because, in theory, all programs and films could be available on any other streaming platform.

02:34 The answer was also rather simple.

02:35 "We will produce our own shows and movies just for Netflix users," they declared.

02:40 They were referred to as "Netflix Originals," and the key distinction is that they weren't produced arbitrarily.

02:46 Instead, they used their user information, or the activities of Netflix users.

02:51 After analyzing the data, they created programs and films that were specifically tailored to the target demographics for each grouping.

02:59 The key distinction is that, as evidenced by Netflix's widespread success, the Internet giant was once analogue, then semi-analogue, and then fully digital before becoming what it is now. To lead the digital revolution to success, you don't always need to be from Silicon Valley. We'll now examine the Cewe case.

03:21 In the past, when we took pictures with analog cameras, Cewe was an anonymous photo developer. Therefore, we had to go to a store, give them our film, and then come back to pick up the finished pictures.

03:34 This abruptly altered in the year 2000.

03:37 Fewer movies were purchased.

03:39 The analog world will eventually come to an end, therefore we were able to recognize that from the beginning. In fact, more digital cameras than analog ones were sold in the year 2003, and at this very time, we can see that something is changing and transforming.

03:56 Many rivals were unable to make the change.

03:58 Cewe has not expired.

04:02 The web business generates 80% of the company's revenue.

04:05 With the help of a strong brand, client interaction, and the ability to offer numerous customized items rather than just one standard item, Cewe has been able to advance from the rear to the front.

04:17 Due to consumer demand, they began to make calendars and smartphone cases in addition to traditional photos.

04:26 Only two of many examples that demonstrate how, in the best case, digital transformation can function are Netflix and Cewe.

04:35 They demonstrate for us how to advance this dramatic transition, the modern business model reinvention.

04:42 These two instances also demonstrate the fact that it might sometimes take years to achieve this reconfiguration.

04:50 We learned the value of being close to the customer, meeting specific customer requirements, and always moving forward with the client from Netflix and Cewe.

05:00 This also holds true for today's industrial solutions, other B2B sectors, etc.

05:08 Finally, they both demonstrate the significance of advancing this change, which is another justification for beginning right away.