Best Practices to Ensure Success in a Digital Transformation Project
Assess Current Technologies and Gaps
Investing in a saturated market in which you’re doomed to fail is a massive waste of time and money for your business. Instead, try to find gaps in which you can innovate.
For example — in the era of Blockbuster, Netflix was an up-and-coming DVD rental company that would send out DVDs to customers to rent and return. Nobody knew that they wanted ‘streaming’, as the idea hadn’t really come to fruition yet.
Netflix saw the gap in the market and took advantage of it, becoming the go-to company for movie streaming for the majority of the 2010s. In fact, Netflix was so successful in innovating the industry that it caused Blockbuster to fall into obsolescence.
With this, be careful to keep an eye on how technology is progressing. Netflix was able to start its streaming service so quickly because it timed the transition from DVD to streaming perfectly as the quality of streaming improved — with Netflix relegating its DVD service to DVD.com in 2016 whilst acquiring the domain in 2012.
Rather than hastily rushing into the streaming market in the early 2010s, Netflix slowly built up its empire and sunsetted its archaic DVD service to obsolescence when the time was right.