What digital transformation contributes to business models is the capacity for continuous change. Many executives know that they must adapt to new business environments, and adaptation is a core feature of digital transformation. Because a business model that incorporates digital transformation will subsequently be digital “down to the bone,” the company will be able to function much more quickly and efficiently, and improve continuously over time.
Prior digital changes to a business could involve, for example, updating the company’s software, purchasing new design tools, and improving logistics strategies. Once digital transformation has been implemented, such tasks are performed continuously and automated where possible. The concept is similar to the difference between an encyclopedia and Wikipedia. With an encyclopedia, you have to buy a new edition whenever the previous one becomes outdated, whereas the pages of Wikipedia are continuously, and often instantly, updated as new information becomes available.