Blog and Ideas
September 3, 2018
By Néstor López

What is Digital Transformation?

Find out what you can do before the Fourth Industrial Revolution puts you out of business.

What is Digital Transformation?

The future has reached us. We are living in times where we witness things that only the brightest minds dared to imagine. According to expert opinion, we are living a “fourth industrial revolution”, because the current economic, social and technological transformations will forever change the direction of humanity.

Considering that examples are a very effective pedagogical method, let’s get into the matter: Do you remember Blockbuster?

Maybe you are too young to remember it, but until a decade ago it was very common to find those mystical places where you could “physically” buy and rent ” – during that time clarification would not have been pertinent – movies, DVDs and their predecessors, videocassettes in VHS format. Although the internet already existed, the speed of data transfer still did not allow for the distribution of online video content the way it does today. Going to a Blockbuster represented the access to cinema at home and there was a whole culture around it. In some cases, a family tradition was a visit on Sundays to choose the movies or season of a series to watch for the rest of the week.

During this era, a new company called Netflix laid its foundations by offering the same service, but with the exception of sending DVDs to your home. This innovation was on a really basic level and nobody imagined what would come next; plus Netflix being a very small company, Blockbuster never felt threatened.

Netflix started incorporating software into its core, and not only that, but saw the opportunity to fulfill its promise of entertainment without one having to leave home. They gave priority to digital rather than logistics in order to create incredible software that was compatible with a large number of devices at the time. They then began to distribute movies and series to people who only required an Internet connection.

Meanwhile, Blockbuster only dedicated itself to continue doing their thing. And as a result, the company that was worth billions of dollars, went bankrupt in just 6 years.

Today, although Netflix is a preponderant player in the OTT world, the war is not won. The competition is fierce and upon entering the television production market, they went up against powerful competition among which The Walt Disney Company (which will soon launch its own OTT system) and HBO stand out.

Inspired by the decline of Blockbuster, HBO did not hesitate to do what was necessary to prevent Netflix from eating its market. It began to develop its platform for the delivery of online content. However, it has not reached the ideal technological development in Latin America. It’s undeniable …that it really is a race:

Can Netflix become HBO faster than HBO – or any other OTT – can become Netflix?

HBO has developed its own applications, and is constantly iterating on subscription models independent from traditional television. They also make alliances with local streaming companies that diversifies the methods by which the public can access their OTT platform.

The interesting thing in this case is how a traditional company becomes a digital company, while a digital company manages to break traditional companies.

However, in Latin America we are used to thinking that technological change will reach us too late … if it ever does.

For example, the arrival of the digital transportation industry was one of the most disruptive technological advances to daily lifestyle in the country. It continues to represent a challenge in many cities around the country and taxi drivers never imagined they’d be going up against transportation giants such as Uber.

Digital transformation can effect industries in which we would never imagine could be affected by the disruption of progress. However, it is happening. Another example that few imagined is in the realm of domestic work. Now, people who help us maintain our homes can now be requested through an app that allows all logistics and details to be communicated directly through the app.

But to all this, how does digital transformation work?

You have to get to the very core of the business scheme of the company. Think about efficiency and scalability, rely on technological advances in software / hardware – if there is none, create it – all in order to facilitate processes and eliminate unproductive repetition. It is also important to train employees for proper use and promote internal and external feedback in a spirit of continuous improvement.

The question with which you should stay today is:

Can you become a digital company faster than a digital company becomes you?

At Mijo! Brands we want to help companies join this digital transformation and improve their business. We are a leading creative digital marketing agency with offices in Mexico City, Guadalajara and Puerto Vallarta, made up of a team of multidisciplinary experts that can help you boost your brand.

Néstor López is Fullstack Developer with Mijo! Brands. Self-taught, passionate about programming and good design since he was a child, a geek at heart and a former volunteer at the Red Cross. He keeps abreast of trends in agile interface development, participates actively in communities and collaborates in Open Source projects, loves big challenges and is fascinated by gadgets. He speaks in Javascript and converses in PHP, in his spare time he practices Python, Ruby or Esperanto; he cultivates the art of internal conversation and is very well liked by himself, and everyone around him. He enjoys making people laugh and music is a constant companion in his life.


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