Microsoft chief executive Satya Nadella discusses Microsoft's platform for businesses to tap into the US software titan's computing platform in the Internet "cloud" at a Microsoft press briefing in San Francisco, California. Even as Microsoft on October 20, 2014 ramped up Internet "cloud" offerings for businesses, its chief continued to be dogged by a comment that women should not ask for pay raises. Satya Nadella hosted an intimate press gathering in San Francisco, where the US software titan detailed its strategy and latest moves for helping businesses tap into the power of colossal online data centers as needed. AFP PHOTO / GLENN CHAPMANGLENN CHAPMAN/AFP/Getty Images
AFP/Getty Images
Microsoft chief executive Satya Nadella discusses Microsoft's platform for businesses to tap into the US software titan's computing platform in the Internet "cloud" at a Microsoft press briefing in San Francisco, California. Even as Microsoft on October 20, 2014 ramped up Internet "cloud" offerings for businesses, its chief continued to be dogged by a comment that women should not ask for pay raises. Satya Nadella hosted an intimate press gathering in San Francisco, where the US software titan detailed its strategy and latest moves for helping businesses tap into the power of colossal online data centers as needed. AFP PHOTO / GLENN CHAPMANGLENN CHAPMAN/AFP/Getty Images
Now playing
03:43
Can Microsoft make money off 'internet of things'?
ORLANDO, FLORIDA - FEBRUARY 28:  Former President Donald Trump addresses the Conservative Political Action Conference held in the Hyatt Regency on February 28, 2021 in Orlando, Florida. Begun in 1974, CPAC brings together conservative organizations, activists, and world leaders to discuss issues important to them. (Photo by Joe Raedle/Getty Images)
Joe Raedle/Getty Images
ORLANDO, FLORIDA - FEBRUARY 28: Former President Donald Trump addresses the Conservative Political Action Conference held in the Hyatt Regency on February 28, 2021 in Orlando, Florida. Begun in 1974, CPAC brings together conservative organizations, activists, and world leaders to discuss issues important to them. (Photo by Joe Raedle/Getty Images)
Now playing
01:32
CNN correspondent: This is a nightmare situation for Facebook
Now playing
04:11
Facebook decision 'is wait and see,' says former public policy director
Gravity Industries
Now playing
01:07
Watch these UK commandos fly over the sea with new jet pack
Congress hearing mishap
Twitter/The Hill
Congress hearing mishap
Now playing
03:39
From 'Galaxy Quest' to F-bombs: A year of video conference mishaps
Police used an image of the suspect taken from a fake driver's license left at the scene (left) to run a facial recognition scan. It returned a "high profile comparison" to Nijeer Parks (right). (Woodbridge Police Department)
Woodbridge Police Department
Police used an image of the suspect taken from a fake driver's license left at the scene (left) to run a facial recognition scan. It returned a "high profile comparison" to Nijeer Parks (right). (Woodbridge Police Department)
Now playing
06:33
He was innocent. But a facial recognition 'match' got this Black man arrested
Galaxy Book Pro 360 13 inches.
Samsung
Galaxy Book Pro 360 13 inches.
Now playing
01:39
Samsung's new laptops are almost smartphones
Now playing
01:37
Elon Musk taunts Jeff Bezos over NASA contract
Now playing
05:42
How NBA Top Shot turned dunks into digital gold
Now playing
03:09
Electronic skin could track your vital signs
SAN FRANCISCO, CALIFORNIA - OCTOBER 04: Project Include Co-Founder & CEO Ellen Pao speaks onstage during TechCrunch Disrupt San Francisco 2019 at Moscone Convention Center on October 04, 2019 in San Francisco, California. (Photo by Steve Jennings/Getty Images for TechCrunch)
Steve Jennings/Getty Images
SAN FRANCISCO, CALIFORNIA - OCTOBER 04: Project Include Co-Founder & CEO Ellen Pao speaks onstage during TechCrunch Disrupt San Francisco 2019 at Moscone Convention Center on October 04, 2019 in San Francisco, California. (Photo by Steve Jennings/Getty Images for TechCrunch)
Now playing
04:53
Ellen Pao: The biggest myth about tech is that work is a meritocracy
AirTag
Apple
AirTag
Now playing
01:17
See AirTag, Apple's new device for tracking your lost stuff
Now playing
01:09
Google Earth's new Timelapse feature shows 40 years of climate change in just seconds
Elon Musk's Neuralink says this monkey is playing Pong with its mind
From Neuralink/Youtube
Elon Musk's Neuralink says this monkey is playing Pong with its mind
Now playing
01:41
Elon Musk's company says this monkey is playing Pong with his mind
CNN
Now playing
02:36
The truth behind Covid-19 vaccines for sale on the dark web
Now playing
05:41
NFTs have completely transformed these digital artists' lives
(CNN Business) —  

These days nearly every company is, or is in the process of becoming, a technology company. Major retailers have mobile apps and robust e-commerce platforms. Banks are getting into cryptocurrency. Grocery stores no longer expect customers to come inside to shop — they can place an order online and pick it up outside the store, or have it delivered right to their homes.

All kinds of companies are developing and using technology to make their operations more efficient and their products and services more attractive to consumers.

Satya Nadella, CEO of Microsoft (MSFT), knows the world of digital enterprises particularly well.

Speaking at the recent AT&T Business Summit, Nadella offered some advice for companies looking to make a digital transformation.

“One of the things I think a lot about is: If we use this term that every company is a digital company, every company is a software company, what does it mean?” Nadell said. “How does one create that digital strategy inside of any enterprise, across any vertical or industry? The formula I think about is what I describe as ‘tech intensity.’”

First, he said, companies need to be early adopters of new technology to power their businesses, so they don’t waste time or money later trying to get out from behind the curve. Then companies need to cultivate the ability to develop their own “digital IP,” building exclusive software and tools that only their customers have access to.

“You don’t want to