Change management involves the transition of an organization’s ways of production, goals, and technologies. There are three main types of change management; developmental, transitional, and transformational change. Change management impacts the process, systems, and employees in the organization; hence it is vital to consider an effective strategy that will suit the change management (Vlados et al., 2018). Change management includes implementing strategies that will control the desired change, be practical and help people adopt the change. The strategies include the processes of planning the change, testing, scheduling, implementing, documenting, and communicating the change. Digital transformation is part of change management. Digital transformation is the process of using new technology in production and other processes in a business (Karabulut, 2020). It helps modify the existing process, customer experience, and culture to need the changing market and business requirements. As digital technology grows, businesses are generating ideas of using the new technologies in new ways and not just using them to fasten the old ways of production.
The central goal of implementing digital transformation is to improve innovation, efficiency, and value. Digital transformation help save time and costs by automating manual processes and integrating data, increasing business profits. There are five main types of digital transformation; business model transformation involves using technology to change how the business works internally to improve customer experience and the quality of the product. The second type is a business model transformation that focuses on innovation and adapting to the new environment to improve business outcomes (Tekic &Koroteev, 2019). The third type is domain transformation, which involves removing the traditional boundaries that affect the business possibilities and markets and adopting new technologies such as artificial intelligence and the Internet of Things.
The other type of digital transformation is the cultural transformation which entails educating the existing staff on the benefits of adopting new technology. The last type of digital transformation is cloud transformation, which enables a business to move from information systems to cloud environments with benefits such as efficient data sharing and storage, faster time-to-market, and greater organizational scalability and flexibility. The future of currencies is not about the transformation of physical cash, mobile cash app, and credit cards but rather the emergence of electronic currencies such as cryptocurrency that will evolve and be more efficient and stable in the world economy (Prayogo, 2018). The future currencies will lead to innovations that will reshape the finance field and revolutionize how we do business, trade, invest, insure and manage risks. Digital currencies ensure the flexibility and economic growth of a business.
Adopting the five main types of digital transformation help a business transcend global borders by opening up multiple opportunities and boosting the trade of a business leading to an improved future of digital currencies. Digital transformation will redefine the concept of money, such as its traditional purpose in acting as a medium of exchange, store of value, and unit of account. It will be a more effective tool for efficiency and flexibility, improving market access and increasing sensitivity to customers’ needs. Digital transformation has changed the structure of financial systems and the nature of money. The future of currency is changing business’ financial activity from making all payments through the bank to adopting a payment-centric model. Businesses can trade internationally and get paid using different digitalized systems. They make payments through digital platforms such as WeChat and Alipay digital wallets, which have become dominant payment systems (Shu et al., 2019). Businesses need to adopt digitalized ways of payment to cope with the technology.
Digital transformation is also the future of currencies, whereby digital dollarization will occur. Digital dollarization is where the national currency is replaced with digital foreign currency regardless of geographic location. Digital dollarization benefits a business financially through integration and promotes international trade. Digital transformation will change how society thinks about money since there will be cheap international transfers (Ikeda, 2020). People and businesses can access money 24/7, even during weekends and outside regular working days or hours. This will help the business make more profit since they will be in operation all through, leading to customer satisfaction.
The adoption of digital transformation also leads to change in the future of currencies where we have the adoption of Central Bank Digital Currency (CBDC). CBDC functions the same way as actual cash, but the only difference is that it uses electronic payments such as PayPal and ACH transfers (Meaning et al., 2018). CBDCs have many advantages, and one of the main advantages in digital business is that they can be deemed legal tender where investors can accept it for legal purposes. The businesses can also use CBDC to pay taxes and create a taxable event where they owe capital gain taxes every time customers use it to purchase anything from the business. It also simplifies the production and distribution process, where businesses must physically transport the currency notes from one location to another. CBDC also helps government organizations to disburse payments directly to their citizens
References
Ikeda, D. (2020). Digital money as a unit of account and monetary policy in open economies (No. 20-E-15). Institute for Monetary and Economic Studies, Bank of Japan. https://ideas.repec.org/p/ime/imedps/20-e-15.html
Karabulut, A. T. (2020). Digital innovation: an antecedent for digital transformation. International Journal of Commerce and Finance, 6(2), 179-186.
Meaning, J., Dyson, B., Barker, J., & Clayton, E. (2018). Broadening little money: monetary policy with a central bank digital currency.
Prayogo, G. (2018). Bitcoin, regulation, and the importance of national legal reform. Asian Journal of Law and Jurisprudence, 1(1), 1–9.
Shu, Z., Tsang, S. Y., & Zhao, T. (2019). Digital transformation of traditional Chinese banks. Open Journal of Business and Management, 8(1), 68-77, https://www.scirp.org/journal/paperinformation.aspx?paperid=96964
Tekic, Z., & Koroteev, D. (2019). From disruptively digital to proudly analog: A holistic typology of digital transformation strategies. Business Horizons, 62(6), 683-693, https://www.sciencedirect.com/science/article/pii/S000768131930093X
Vlados, C., Deniozos, N., & Chatzinikolaou, D. (2018). Global crisis, innovation and change management: Towards a new systemic perception of the current globalization restructuring. International Business Research, 11(8), 9-29, https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3362584
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