 Digital transformation. Digital transformation. Digital transformation. Digital transformation. Hey, I'm Jonathan, product strategist at AJ & Smart, and today I'm going to tell you what the F digital transformation is. And before I get right into the video, I just want to tell you, we release videos like this every single week. So if you want to see more of them, just smash that subscribe button. So digital transformation, what is it? Generally, when people refer to digital transformation, what they're talking about are companies or organizations or governments that traditionally used analog methods to deal with their customers are maybe even citizens. So for example, banks having actual bank tellers or newspaper companies, news organizations actually having newspapers, or maybe even telecommunication companies that you had to call up to ask questions. I don't know who you are. I don't know what you want. It's moving companies like this to a digital world where their customers data is stored digitally, where most of the interactions that they have with their customers are digital. Now, everything that they do is digital, and more importantly, it's scalable. So if we look at a company that has not gone through digital transformation yet, they might have customer data spread out throughout the whole company and no central point for them to actually be able to look at this data and act on it. A company that's fully digital is going to be able to say, this is our customer, these are segments of our customers, and here are some interesting products and services that we could create to improve these customers' lives. That's an extremely difficult thing to do if your company has not yet gone through the digital transformation process. So let's take a look at a couple of examples to make it a little bit easier to understand what this whole digital transformation thing is. Axel Springer is one of the largest media companies in all of Europe, and they are also one of the biggest success stories when it comes to digital transformation. This is a company that is very, very smart about digital, not very well known in the United States yet, but they have transformed their own business from a print publisher 10 years ago to now where 75% of their revenue profit is coming from digital. So Axel Springer used to make most of their money from selling magazines, selling newspapers. All of this kind of stuff, right? The traditional media company approach to making money. After a new CEO came in and decided to completely revamp the entire company and digitally transform it, the company now makes 70% of its revenue from digital products, digital services. The important thing is that we have in the long run a real sustainable monetization model. Mid-rolls and advertising is one, but paid elements subscription has to be a second one. And now what's the advantage of a company like Axel Springer having digital products and services? Well, they know more about their customers and so they know the types of things that their customers will want to see. They're able to use the digital services and digital systems they have to match the right people with the right advertisers and the right services. So they actually get the most revenue out of their advertisements. Let's take a look at the automotive industry. In the automotive industry, traditionally companies like Mercedes, companies like GM, they would put their cars out there and then that's pretty much the end of the interaction that you have with that car company, right? You're using the car, you're disconnected, that's it. Today, if you look at companies like Tesla or if you look at what companies like Daimler are trying to do, essentially you're buying a car plus a fully integrated digital product of these companies that they can interact with you every day, they can push updates. BMW Connected Plus. And the Plus stands for a more seamless integration into your BMW and offers an even wider range of personalized services powered by BMW's open mobility cloud. Companies like Tesla who have been digital from the very start also have a much more one-to-one relationship with their customers. And the same thing goes for Telcos. So these large companies that own the landline, so AT&T, Verizon, all of these kind of companies, they used to make a lot of money and still do from just being the only players in the market. Today they're being forced into digital transformation because a lot of competitors are coming around and creating a commodity market where the cheapest wins. So what companies like Verizon and AT&T are trying to do with digital products is get more in touch with their customers and offer services that add value to their customers so that they really stick with that brand. All on your terms, it's entertainment, your way. And unique experiences you won't find anywhere else. Texture Plus brings the industry's top products to your home, only with Verizon. And it's something that companies are not wanting to do, they have to do it or else they're going to lose. And finally I think governments are one of the biggest places that digital transformation is changing the world where applying for visas, sending in your tax returns, all of this kind of stuff is going digital and many countries have gone completely digital in this way. The combination of mobile devices and cloud services has reinvented productivity, driving new levels of efficiency, collaboration and citizen engagement. So as you can see, digital transformation is not just about changing things that were analog before into things that are now digital. It's not just about going paperless, which was the start of the digital transformation movement. Today it's about being able to add more value to your customer interactions and to remove some of the guesswork with the products and services that you're creating as a company because you're able to gather the data, you're able to use that data to create things that are valuable and actually improve your business. And even if you're a government, just having much smoother processes makes the citizens happier. It saves a ton of money as well. So I hope you enjoyed that video. Once again, if you enjoyed it, give it a like, give us a comment if you have any great examples of digital transformation or let us know what types of industries you think need some transformation ASAP and we'll be there. Thanks very much. Goodbye.