Are your savvy competitors gaining market share by more effectively wooing your customers? Are you forced to price your product out of the market due to cost structure issues? If you know you need to transform to remain relevant in today’s digital-enabled marketplace, continue reading to learn more about overcoming the challenges you face.
What is Digital Transformation?
Digital transformation is not just a marketing or an IT initiative. It’s a cross-functional, holistic approach to maximizing business effectiveness and efficiency of operating models across all functional areas of an enterprise by leveraging disruptive technology trends including cloud, data science, mobile platforms, IoT, Machine Learning (ML), Artificial Intelligence (AI) and others.
To digitally transform, you must take a hard look at the foundational elements of your organization’s current business and operating models, processes, tools, culture, and people. Applying technology-driven innovation and economics to each of these foundational elements will take organizational performance to the next level.
Benefits of Digital Transformation
Develop innovative go-to-market strategies and differentiated products & services
Digital transformation enables businesses to reinvent themselves. Innovative go-to-market strategies help companies to differentiate themselves in the marketplace and grow market share, through cloud-based subscription services, cloud marketplaces, new value-add services, and e-commerce value chains.
- Leveraging data science, including machine learning, predictive analytics, and big data, helps organizations develop deeper insights into customer preferences and behaviors. Exploiting these insights improves customer segmentation, product and services design, product tiering, and market positioning to improve top-line growth, broaden the customer base, and improve customer satisfaction.
Improve e-commerce revenue, customer retention, and brand loyalty
A sophisticated digital strategy that exploits all digital channels (web, mobile, email) aggressively to reach customers utilizes a “Customer 360” approach to unifying and improving customer experience across the digital channels. Harnessing the power of AI to enhance online customer experiences is crucial to winning in today’s digitally powered marketplace.
Real-time business intelligence
Derive real-time insights into business operations like supply chain, inventory and logistics operations, and organizational inefficiencies by processing vast amounts of operational and historical data, a feat not practical before the advent of powerful big data and data science capabilities. Impart business stakeholders with the knowledge to overhaul dated operating models, drive operational models, and process improvements.
For example, combining predictive analytics with real-time access to customer and seasonal demand trends for products across all geographies can prevent revenue loss due to a shortage of goods at any location, facilitating sophisticated inventory and supply chain planning.
Cost structure optimization
Disruptive technology-driven IT restructuring/modernization, business process automation, operational efficiencies, and effectiveness across all functional areas (supply chain, manufacturing, digital marketing, etc.), can sustainably drive down the SG&A cost structure, making the organization lean and agile. This results in value creation that can be used for margin improvements and/or pricing flexibility.
How to get started
A good first step toward digital transformation would be to assess the current state of your business and operating models with an eye toward opportunities where the application of disruptive technologies can radically improve business outcomes.