DIGITAL DOMAIN TRANSFORMATION
We all know that business process and business model transformation are inherent to digital transformation best practices. A less well-known but equally important component of digital transformation is domain transformation. And it’s nothing related to modifying your IP address or changing your website identifier. While domain transformation often receives less attention than it deserves, it has proven itself to have enormous potential for businesses that want to diversify and remain competitive. In layman’s terms, domain transformation can be described as:
“Domain transformations occur when one business is able to slide into another area successfully.”
Another way of looking at it is as an extension of your product or service offering using new technologies. The cloud, AI, IoT, edge computing, virtual and augmented reality and blockchain all can positively disrupt and refine products and services and foster growth opportunities.
TARGETING GEN Z
A successful fashion brand realised that it needed to broaden its appeal to Gen Z to keep its competitive edge. The brand decided to revamp its website and create a metaverse, similar to that done by Nike. The retailer, having access to the latest digital technologies, could also offer its clothing in an affordable rental capacity. By leveraging technology and innovation, the brand was able to increase top-line sales, retain its loyal customers and garner attention from the under-25s. That’s domain transformation for you.
THE ULTIMATE DOMAIN TRANSFORMATION SUCCESS STORY
Amazon is the leader of the pack when it comes to domain transformation success stories. Founded by Jeff Bezos in 1994, the company launched as a website that only sold books. But, according to Business Insider senior reporter, Avery Hartmans, Bezos always had a vision for Amazon’s e-commerce domination:
“He knew from the very beginning that he wanted Amazon to be an everything store.”
As an agile business that could execute change, Amazon survived the dot-com crash in 2000. The same year it launched Amazon Marketplace, the first third-party reseller platform on the planet. But it wasn’t holding back. In 2005, along came Amazon Prime which was so successful that it penetrated the market in France, Italy, Germany, Japan, the UK, and Canada over the next 8 years. In 2006, Amazon Web Services (AWS) began offering IT infrastructure services to businesses and is now the biggest cloud computing vendor owning almost half the world’s public cloud infrastructure market.
Being customer-centric and driven by technology, Amazon is ranked number one on several customer satisfaction indexes. Chief Digital Technologist at Rackspace, Mike Bainbridge, once said:
“Look at the companies that have been successful; brands like Uber and Amazon, they have made it so easy for their customers to book taxis and buy goods, and it is all driven by technology. They know exactly what customers want … The key to this is to put yourself in your customer’s shoes, put your customer-centric business goals first, and deliver a seamless customer service.”
YOU DON’T ALWAYS WIN
Amazon also isn’t deterred by its failures such as Auctions and Block View. The company, a risk-taker by default and always thinking outside the box, launched the employee-less supermarket, Amazon Go in Seattle in 2018. Currently, with 42 stores in the United States and the UK, the retail juggernaut plans to open hundreds more, including points of sale in Germany, Italy and Spain. Former Amazon CEO Brittain Ladd reflected on Amazon’s expansion and said:
“Amazon’s logistics strategy has incorrectly been described as being similar to the tentacles of an octopus. It is in fact more similar to the web of a Darwin bark spider that makes the largest spider web in the world.”
SOMETHING YOU CAN’T IGNORE
With analysts expecting investment in digital transformation to reach $2.3 trillion worldwide by 2023, transforming your domain isn’t something that you can afford to ignore. But before doing this, consider your customers, the competition, your data, the innovation you need and how you will add value to your business. Always be mindful of new opportunities that can be incorporated with new technologies and like Amazon, don’t be afraid of taking calculated risks. Remember that domain transformation avails you with one of the most significant opportunities for growth.
POWER UP WITH ME
Domain transformation has the power to transform your business, making it fresh and new. If you need some ideas on how to use new technologies to digitally transform, please count on me. I have over 20 years of experience in providing expert IT advice to businesses, including how they can lever technology to remain competitive. You can also join a colleague of mine on 28 September at 10:00 UK time to upskill your knowledge on how to digitally transform your business to the next level. You don’t know where you might end up. The next Amazon, maybe?