In the business world, the term digital transformation cannot be ignored. Digital business models, new technologies and ever faster business development are characteristic of this term. A revolution in companies and in our everyday lives. But what factors are behind the digital transformation? Digital transformation essentially comprises three laws: Moore’s Law, Metcalfe’s Law and Bandwidth Law. These three laws describe the combination of computing, connectivity and the cloud.
Moore’s Law of Digital Transformation
Moore’s Law has been one of the central drivers of digitization for many years and is what makes digital transformation possible. Moore’s Law states that the complexity of integrated circuits doubles regularly with minimal component costs. This leads to ever faster, but also cheaper computers, which enables us to store more and more sensors, programs and applications. Robotics, computer science and sensor technology have been able to make quantum leaps in recent years and we now have devices such as our smartphone that would not have been imaginable just a few years ago. According to current future scenarios, however, we are slowly reaching the limits of Moore’s law, which could shorten innovation cycles and present us with new challenges.
Metcalfe’s Law of Digital Transformation
Metcalfe’s Law deals with connectivity, the ability of many users to access information across multiple locations. The Metcalfe law states that the effect of a telecommunications network is proportional to the square of the number of connected users of the system. Starting with telephones, which suddenly allow people to be contacted over long distances, social media and the Internet make it possible to interact with many people at the same time.
Bandwidth Law of Digital Transformation
The third rule is the Bandwidth Law. Nielsen’s Law of Internet Bandwidth states that the bandwidth of users is growing by 50% per year. This increased bandwidth ensures that the quality of our digital experiences and opportunities continues to increase and that we are able to cope better with the ever-increasing amounts of data.
The digital transformation is shaped by these three rules and is shaping our society strongly today.