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Digital transformation involves the evolution of business models to cater to which of the following?

  1. New technology trends only

  2. Highly empowered customers

  3. Established business practices

  4. Cost-cutting measures

The correct answer is: Highly empowered customers

Digital transformation fundamentally centers around enhancing business operations and strategies to better meet the needs and expectations of highly empowered customers. In today's digital landscape, customers are more informed, connected, and demanding than ever. They have access to vast amounts of information and can easily compare services and products across various providers. To respond effectively to these changes, organizations must adapt their business models to offer greater value, personalized experiences, and improved engagement. This transformation often involves the integration of digital technologies into all areas of a business, reshaping how value is delivered to customers and how the organization operates as a whole. While new technology trends, established business practices, and cost-cutting measures are relevant to an organization's strategy, they do not encompass the comprehensive focus on customer empowerment central to digital transformation. Embracing the perspective of the empowered customer leads to innovations and improvements that enhance satisfaction and loyalty, aligning closely with the goals of digital transformation.