How often have you heard the term Digitalisation?
The term with all its weightiness might sound so much complicated. But of course not, It simply means, Incorporating digital technologies into our everyday lives.
In business, Digitalisation refers to digital transformation. It is the use of digital technologies to change the business model and to provide a new revenue and value-producing opportunities, inducing business to move towards the digital marketing .
The focus is to create value out of new ,high-end technologies by exploiting digital network dynamics and giant digital flow of information. It provides business markets a digital orientation by employing advanced technologies such as analytics, mobility, social media ,smart embedded devices and digitized processes, among others .
According to Gartner "digital business is the creation of new value chains and business opportunities that traditional businesses cannot offer".
McKinsey has emphasized that "digital should be seen less as a thing and more a way of doing things."
The process of digital transformation is a long one .Yet, companies try to achieve it within a short phase.
As it is said, Slow and steady wins the race. Careful study of the process, basic elements, strategies and challenges are required to successfully digitalize your business.
Let's take a brief look at the main points covered
- The Nine Elements of Digital Transformation
- Advantages of Digitalization
- The Six Strategies of Digitalization
- Steps to make your business "Digital-Ready"
According to Harvard Business Review , Dr. George Westerman, a research Scientist ,stated that there are nine element to be transformed when the company wants to shift digitally.
- Customer Understanding
- Top-Line Growth
- Customer Touch Points
- Process Digitization
- Worker Enablement
- Performance Management
- Digitally Modified Business
- New Digital Business
- Digital Globalization
Most of the world business groups had turned their heads towards digitalising their business. Higher the competency higher the pressure the companies has to go through to reaffirm their efficiency and annihilate all possible threats.
Disney has brilliantly switched into digital business from the traditional marketing to enhance its customer experiences in its theme parks.
They had introduced MagicBand, a wristband that uses RFID ( Radio Frequency Identification) and radio to connect with sensors in the park.
Guests receives the Magicband a few weeks before their visit and can use it to enter the park , buy food ,get into rides and reserve attractions. At the end of the day, the guests are blessed with colourful memories that moves fluidly between digital and physical.
- Two-third of global CEO's plans to adopt digital strategies to enhance customer experience by 2019. - Seagate
- 56% of CEOs proved that digital improvements have led to revenue growth Gartner By 2020, 25% of customer service operations will use virtual customer assistants like chatbots , up from 2% in 2017 -- Gartner
- Start-ups can increase revenue by 34% relying on digital-first strategies, with all enterprises increasing revenue by 23%.—IDG's 2018 State of Digital Business https://www.forbes.com/sites/louiscolumbus/2018/04/22/the-state-of-digital-business-transformation-2018/#1ed54e195883
- Enhances productivity and efficiency
- Increased customer experience and satisfaction
- Free of errors
- Quick results
- A good means to attract customers
- Makes our vision clear
- Helps to plan and organize systematically
- Use of High-end Technologies
- Increases competiveness
- Provides for Innovation
Netflix is a good example of a company transforming itself into a digital business., Initially, Netflix used technology to manage an inventory system and mail people DVDs ,which is similar to movie rental stores. However, once it transformed itself digitally by giving customers the option to stream video on demand . It transformed the way that people view film and television media. The ability to watch movies and TV shows at any time or place is made possible with the widespread internet access that most consumers possess today.
A well planned business strategy is useful in organised planning. A carful study of your company's goals is required before you formulate the best strategy for you organization or else your company might slide into loss rather than profit.
Platform play : One third of the firms have been engaged to some degree in platform strategies, in an attempt to redefine their industry's value chain facilitating the interaction between customers and suppliers and increasing the benefits from network effects.
Platforms have the power to radically alter the way how value is distributed in a value chain. Platforms aims on providing business solutions to serve clients and to supply other platforms.
They perform independent groups that bring together business, technology, governance, processes, people management and are empowered to act prudently. They are run by a platform owner, who takes end-to-end responsibility for its operation and in providing solutions.
They work in an agile manner, operating and delivering the solution itself, enabling continuous business-led innovation and developing and running all necessary IT. Accor, which is opening its online booking platform in independent hotels offers a good case.
New marginal supply: A smaller fraction of incumbent firms were using digital technology to tap into previously inaccessible sources of supply at a marginal cost, often, in combination with a platform play.
Examples include the Swedish retailers H&M and Ikea, both of which are offering online reseller options for their customers, allowing them to sell used , branded products to one another.
The latest software provides a centralized database where all marketing data can be created, managed and automated and measured within a click .As a result, businesses are able to optimize their impact on revenue. Thus, digital technology improves customer retention, lead generation and even return on investment.
Digitally-enabled products and services: Some 55% of the companies , have adopted digital technology in their business to create new products or services with digital features, typically to serve the new demand.
One example is P&G's Oral-B toothbrush with Bluetooth-enabled digital guidance. An approximate , 7% of the companies have employed innovative strategies in pleasing their customer, on such is providing free samples of products.
Rebundling and customizing: Another 60% of companies are using digital technology to rebundle their products or services to better serve their existing customers.
Online reading apps present customers with books to read at their fingertips giving them same satisfaction that they would gain from reading a paper copy, it also enables one to personalize reading lists and organize the content they read .
Digital distribution channels: Almost 60% of the firms invest in digital distribution channels, in an attempt to make it easier for customers to access their products or services.
Digital Marketing and advertising have enabled the quick spread of information across the world.
Cost efficiency: Almost half of companies had turned their face towards digitalization to improve their cost efficiency, mostly through automation or cost scaling.
In an era where operational excellence is the norm, this strategy appears to aim at survival rather than creating a source of comparative rise.https://www.imd.org/imd-reflections/digital-programs-reflections/digital-transformation-strategies/
Digital Transformation goes beyond eliminating the use of paper. Most of the business had turned themselves into the world of digitalisation.
However, Simply cooperating technology into business cannot accelerate profit. Organizations must be well- equipped with strategies and plans that fits their company.
If not, the company might misinterpret their success story. In a research conducted by Qualtrics, It has been seen that 60% of companies thinks they are proving a good mobile experience, but only 22% of consumers feel the same. Here are few of the many ways to successfully digitalize your business.
Have a clear vision
- Digitalizing business does not mean expanding the use of technology. It means finding the right strategies and incorporating it in your business carefully in order to achieve a high raise.
- It must be a change from 'enabling" to a source of innovation and creativity. The hallmark of digital business is to identify the fast- racing opportunities and make the best use of them .
Launch digital business centres of excellence
- Centres of excellence (COE) basically a counsel of advisors, are a source of input, advice and opportunities for the shared formation of a digital strategy and the capabilities needed for its execution.
- The aim is to identify and examine the various strategies employed, its advantages and disadvantages and finally suggesting the best option needed to perform .
- We need to ask new questions and find new ways of answering them. Taking review from clients regarding your business can be helpful.
Develop new digital business channels
- Living in this era , it's clear that traditional recruitment practices will not suffice. Companies should launch innovative learning programs, online recruiting techniques to employ the best of the individuals .
- Use the new technologies to distribute work more effectively and invent new channels for finding, building and acquiring digital business capabilities.
Employing Innovative Techniques
- Its not all about adopting new technologies , it's about knowing how to use them. Developing new and environment friendly techniques helps you to gain popularity among masses.
- For example, reinventing old games might get you to touch the fuzzy nostalgic corner of the gamer's heart. Innovators can think of integrating new ideas to old strategies, coming up with a brand- new one.
- This might help you to make perfect your product and increasing demand and popularity.
"Companies that invest more in digital transformation actually outperform their peers over time. These companies are more prepared for disruption, better able to monetize new digital channels, and better able to build a bigger user base. What's more, this phenomenon exists regardless of industry." — Geoff Cubitt, CEO, Isobar US