Wherever we look today, we come across two words: ‘Digital transformation’. In fact, it is a new hot topic, along with big data, and internet of things (IoT). On this blog, we already discussed the digital transformation of different industries. Some might wonder how these businesses reach this digital transformation phenomenon. Well, there are three main ingredients to consider when one digitally transforms a business. Let’s dig deeper into that in this article…
Digital transformation is a major disruption to the way businesses operate. Thus, rethinking 3 different elements: customer experience, operational processes and business models.
Since the explosive spread of social media platforms that happened a few years back, customer experience had to become digitalized. Whether they were planning on it or not, companies place the development and implementation of the digital customer experience, on top of their priority list. Today, customers use different social media platforms to seek information, and share reviews and opinion. According to a Capgemini study, customers can now create a “wave of negative noise in a way that was previously unimaginable”.Digital transformation pushes businesses to use social media to understandcustomers, to know what makes them happy and how to satisfy their needs. Digital transformation is also at the core of the strengthened relationship between a brand and its customers: businesses engage with their customers, create online communities and build loyalty. Some believe that digital transformation kills the sensory experience a brand tries to deliver. On the contrary, the sensory experience is not diminished at all, there are just new methods to simulate it. For example, in waiting rooms, we now see iPads, to watch videos and find information about a product or a service. This allows the transfer of an experience that is customized to the client’s preferences.
Businesses are integrating automation to their processes and systems. Thus reducing and minimizing human intervention as much as possible. By doing so, they are allowing their human resources to focus on more strategic tasks, and to push the company forward. This is a strategic opportunity that is made possible thanks to one phenomenon: digital transformation, of course.
In addition to integrating automation systems, businesses are also investing in performance management systems, such as Tableau software. They give deeper insights regarding products, performance, customers, or geographical location. This type of software gathers all the data, and makes it easier to visualize all the information, we call this data visualization. Having precise and real-time information about the different components displayed neatly, decision-making becomes easier.
When disruption occurs, adaptation follows. Most companies today are reconfiguring their business models, after the eruption of the digital transformation phenomenon. Some are integrating new and innovative digital elements to their current model, to complement traditional products and services. They also seek to improve and upgrade the existing products and services. The presence of a certain synergy between traditional and digital components is essential, to guarantee a better flow of operations. In this case, boundaries are also changed and reshaped. Other businesses radically replace all of their model and the existing elements, with a new ‘digitalized’ business model. By changing a business model, businesses are undertaking digital transformation and taking advantage of potential competitive edge and differentiation.
Reconsidering these 3 elements discussed above and rebuilding a strategy according to them, results in a competitive advantage that businesses need in any industry or Market definition in B2B and B2C - The very notion of "market" is at the heart of any marketing approach. A market can be defined....