Digital technology (in English digital transformation) represents a set of mainly technological, cultural, organizational, social, creative, and managerial changes associated with the applications of digital technology in all aspects of human society.

By acting in an organic and combined way on these elements, digital transformation goes beyond the simple adoption of new technologies. It makes it possible to deliver services, supply goods, bring experiences to life, find, process and make accessible large quantities of content regardless of the actual availability of resources ( human, material, intellectual and economic, etc.), pervasively creating new connections between people, places and things.

The digital transformation process is enabled by the development of new technologies but is not limited to their adoption; it integrates and involves the entire ecosystem affected by the process, encouraging transparency, sharing, and inclusion of all participants.

Thanks to this new approach, the final recipient of the value created by the digital transformation are, in fact, at the center of the development if not even a participant in it, thus obtaining practical, effective, and aware access to the service itself, whether it consists of tangible, intangible or data assets.

Effects of Digital Transformation on technology

There are few studies describing the combined effects of digital transformation, and there are no studies that do so across different organizations and industries.

However, multiple studies focus on the effects of using and adopting particular digital technologies, such as Social Technology, Mobile, Data Analytics, and Cloud Computing, by customers and organizations in isolation.

  • Changing Customer Demand And Behavior
    From the customer's point of view, digital technologies are increasingly integrated into our lives, especially in our workplace and home, as part of our daily lives.
    Information technologies bind together, becoming part of systems and networks that can communicate instantaneously and in isolation. Using more IT artifacts, "embedded" IT artifacts, and increasingly interlocked networks and systems lead to a world that is increasingly savvy with, through, and through information technology. This fundamentally impacts how we communicate, consume and create content. As a result, consumer demand and behavior are changing along with consumer-producer relationships.
  • Organizational Responses
    Companies are now forced to adapt their organization to respond quickly to changes in market demand and customer behavior, but only a few are doing so.
  • Effects On Products And Services
    Products and services are changing dramatically. They are increasingly personalized about specific customer preferences.
    Organizations are increasingly able to launch new products and services and enhance their existing products and services in response to the use of digital technologies. The accessibility of products and services is improved through the use of digital devices and digital channels.
  • Effects On Customer Segmentation
    Analytical technologies enable organizations to understand better customer behavior and needs and their willingness to pay premiums for specific offerings. Due to a better understanding of the customer, the ability to segment markets has increased, enabling organizations to provide different offers for market segments.
  • Effects On Customer-Organization Interaction
    Digital channels and technologies have enabled digital interaction that modifies the relationships and interactions between customers and organizations.
    Customer awareness is enhanced due to an evolved online presence enabled by social media campaigns and mobile marketing. Customer communication is improved, personalized, and possible through an increasing number of (social) platforms. Marketing strategies have improved thanks significantly to predictive marketing, better customer engagement, and specific targeting of different customer segments.
    The new Business Models and the application of new technologies have led to new ways of selling and buying and the creation of new processes that make it possible to ignore some now obsolete distribution channels and design new ones.
    Integrating customer data has resulted in improved and personalized sales and support processes within organizations providing more timely and accurate customer service. Overall the digital customer experience has dramatically improved and is at the heart of the digital transformation process. The digitization of the interaction between client and customer organizations increasingly increases autonomy across different channels.
    In addition, organizations leverage customer knowledge to improve products to create new ones and improve products and services through increased knowledge of the community of experts and consumers specific to each industry.
  • Effects On Internal Processes
    Digital technologies and digitization substantially impact the transformation of organizations' internal processes, which must evolve into digital processes.
    Process standardization using digital technologies is on the agenda of many organizations. Internal process automation drives operational efficiency through integration (operational) and data processes.
    In summary, organizations have changed and are still changing due to changes in customer demand and behavior. Their products and service offerings are changing along with the interaction they have with customers. Organizations have enhanced customer insights that enable them to segment markets, cater to customer preferences, and create unique digital experiences for their customers. These changes affect their revenue models, key processes, and partnerships with their suppliers.
    New ways to generate income are used, internal processes are standardized and integrated, and partnerships are increasingly forged through new interfaces and shared and standardized digital services.
  • Effects On Resources And Costs
    Cloud technologies today allow organizations to considerably optimize the costs deriving from IT infrastructures thanks to the possibility of rationalizing computing resources and, therefore, drastically reducing the use of physical and more expensive resources.
    This trend is often referred to as Infrastructure as a Service and Software as a Service.
    Furthermore, the cheaper and more convenient solutions and the benefit of the widely applied economy of scale should lead to an overall reduction in organizational costs. In addition to cheaper digital technologies and the associated costs, digital technologies also enable the virtualization of work processes. Employees can collaborate and share knowledge through virtual platforms that reduce costs.

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Technological Trends for Digital Transformation in Companies

These are the technological trends that, in 2023, are giving companies a competitive advantage for the future, facilitating the workflow and giving them the ability to provide high-quality services efficiently.

  • Artificial intelligence (AI)
    It focuses on creating mechanisms for systems to imitate human intelligence from the collected information. Through data analysis, AI helps companies design business strategies, optimize production processes, discover areas with the possibility of losing money and time, and deploy resources efficiently.
  • Blockchain
    It consists of a network of nodes distributed and connected, which traces the information and provides extreme security, allowing the construction of an interconnected ecosystem resistant to potential cyberattacks. Thomas Greg & Sons have implemented this technology for digital identity authentication and the validation of electronic university degrees (e-title).
  • Robotic Process Automation (RPA)
    Includes software bots that facilitate the automation of manual and structured activities. In some companies of the Thomas Greg & Sons group, automated software robots are already performing many tasks. RPA complements and augments human skills and can exponentially increase the speed, scale, quality, accuracy, and efficiency at which businesses operate.
  • Internet of things (IoT)
    This technology has allowed physical devices to receive and transfer large amounts of data quickly and efficiently over a network without human intervention. With IoT devices, companies can streamline data processing in places other than the central server.
  • Cloud Computing
    This model provides connectivity and large-scale internet services, giving remote access to file storage and data processing. This technology enables scalability, flexibility, operational agility, data decoding, consumer insight gathering, task management, etc. Additionally, it allows you to develop, test and deploy applications without building complex infrastructures. Also, it facilitates team communication and collaboration by giving access to information from anywhere and at any time, improving company performance.
  • Data intelligence (Big Data)
    It is the significant amount of structured and unstructured data that companies obtain and, through analysis, manage to be processed and stored for making more accurate and strategic decisions. Companies that invest in this service can generate higher income and a more significant number of customers.

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Digital transformation refers to applying technologies to create new business processes, products, and experiences, enabling companies to stay ahead, increase productivity, optimize efficiency, and reduce costs.

Digital transformation has become the reality of many organizations, industries, and sectors to achieve competitive advantages in the market, adapting and implementing innovative business models based on technological tools and applications, adding differential value to the economic activity of companies.

  • Purposes of digital transformation
  • Reduce costs
  • Customer loyalty
  • Increase productivity and performance
  • Increase performance
  • Make wise decisions
  • Improve positioning
  • Increase sales

The pillars of digital transformation are innovation and technology, which allow companies to compete and obtain better results. It is evident that the economy has become digital at a global level since, according to a study from the end of 2019 by the National Association of Industrialists (ANDI), 59% of Colombian companies have implemented some digital transformation initiative. In general, the greater use of technological tools is based on the automation and optimization of resources.

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