The past few years have marked the beginning of the “age of the customer”, in which companies and organizations across the globe have universally undergone a rapid change in technology. There has been a drastic rise in re-alignment of technological infrastructure and investment in newer technologies.
Gartner predicts that a typical enterprise manages 268 customer-facing web properties, and organizations have been increasingly relying on digital assets to drive their user experience. By the year 2020, 85% of the company relationships are predicted to be carried out without any human interactions!
In the past decade, there have been rapid advancements in social media, analytics, mobile, and computing– all of which not only amplify the customer experience but have also transformed internal business processes like quality assurance, supply chain tracking, and commerce. Digitalization symbolizes new and unexplored areas for many marketers as it opens up several avenues of developing and optimizing the strategies of an organization. To ensure that companies are on the same page as that of the growing technological innovations, they must do more than just update their websites. They must interact and engage with their customers at every stage of their digital lifecycle.
The evolution of digital business
By 2020, half of all enterprise revenue will be driven by digital channels, yet only 25% of executives have an understanding of how digital can drive value.
-2016 Global Industry 4.0 Survey, PWC
What does the digital shift look like in companies? How can they take advantage of the opportunity to innovate and grow?
Consider the following scenarios:
- A company utilizes wearables to encourage healthcare development to cut down insurance expenses.
- To increase the in-store shopping experience, a retailer utilizes mobile advertising(which is growing at the rate of 20% annually, in the U.K.).
- A hotel chain overhauls an online booking experience to depict the customer experience of physically being at the hotel and talking to a human.
The shift towards digitalization is inevitable, but in 2015 alone, 70% of the digital enterprises have failed to deliver the necessary growth due to lack of a sustainable business model. So, how can organizations adapt to digitalization cost effectively– leveraging and optimizing the latest information technologies?
Stay relevant by mapping your business with digital transformation
I . Get onboard key technologies that are leading the digital transformation.
Internet of Things
It’s happening all around us– from coffee machines to cars to mobiles; every machine is gaining a link to the Internet. Gartner predicts that by 2020, over 26 billion devices will be connected to the Internet. As the giant network of “things” advances, businesses are able to respond to the changing market with agility and flexibility. Internet of Things delivers more than just transformative value. It focuses on data storage and analytics, security, cost-effective models, and much more.
Big Data and Analytics
Analytics is crucial to improving the usage of an organization’s existing applications such as, customer relationship management (CRM), business intelligence (BI), and others. Big Data allows organizations to make meaningful and strategic decisions that minimize costs and maximize results. Interestingly, you don’t have to be a data analyst to begin using big data. Many tools and platforms employ functionalities offered by big data to optimize your strategies, retain customers, and reduce costs.
Nearly every application that enables an organization to strive towards digitalization is reliant on cloud services. Cloud computing is the foundation of building customer engagement and creating better organizational efficiencies concurrently. Usage of cloud will profoundly boost digital transformation as it enables seamless integration of new business and aids in common enterprise architecture.
Hybrid cloud computing is a great enabler for organizations who wish to retain privacy while still leveraging the benefits of cloud computing.. It helps in implementing digital business initiatives in a faster, easier and more cost-effective way.
Hybrid is here to stay.
M2M is all about optimizing, automating, and creating new business. Bringing our virtual and physical worlds a step closer, M2M hosts a whole firm of business processes, and through them, drives innovation, and creates new revenue channels. M2M and Big data’s amalgam gives an enriching customer experience and service management to various industry sectors.
Encompassing the four major elements of business – speed, collaboration, security, and customer adoption – DevOps offers continual delivery capability. Staying competitive requires that consumer-facing technology companies use cloud computing, agile and DevOps to develop web-scale apps. When operations and development work together, there is no throwing of responsibility over the wall to one or the other. Digital transformation requires agility, speed, and round-the-clock performance– something that DevOps can assist any organization with. DevOps helps to escalate collaboration between departments, improve quality of service, amplify deployment frequency, and reduce cost on operations and developments.
2. Hire Digital Experts
Any organization seeking to revolutionize their current business operations entirely, has to have an expert combination of agile development and a visionary technology outlook. CIOs who are gifted with the ability and passion to innovate, play an important role in the digital landscape of an organization. A CIO is responsible for stepping up and transforming headline-making technology innovation into a scalable, stable and secure services that drive real business outcomes for the organization. It is especially important for organizations to establish a leadership framework with the goal of expediting the digital shift and making the organization innovation-ready. “Logical” decision makers are a dire necessity in any organization that wants to strike a proper balance between risks and rewards.
3. Combine technology innovation with traditional approaches
A sizable roadblock in the area of digital transformation arises from the disconnect between existing business needs and understanding where technology innovation fits in. For C-level executives to stay relevant with the shift in technology, it is necessary that they focus on transformation and innovation– to incorporate stability into their existing infrastructure. Beyond the technological ‘comfort zones’ of operations and finance, they must be willing to fund tech innovation by delivering savings in other areas by leveraging cloud services, cognitive computing, and other technologies.
4. Create a culture of continuous improvement
While the shift in digital has been embraced by most businesses, there are still a majority of companies that are yet to even evaluate their organization’s potential, with the introduction to digitalization. The shift to digital is important because of its ability to continuously improve processes, eliminate redundancy and deliver cost-savings through the use of relevant technologies. It also allows you to focus on areas where business and customer values meet, and subsequently, provide enhanced customer experiences.
Driving business growth today is vastly different from just a few years ago. As customers become increasingly empowered based on extensive access to online data, along with a multiplicity of choices, their expectations shoot skyward. A strategic digital transformation in internal and external business processes can deliver superior business value to organizations in terms of surviving competition, optimizing their own operations and adding value to the company’s offerings.
The onus lies on the CIO to make technology decisions that are not just “trendy” but truly relevant to the organization’s bottom line. Maneuvering the transformational age requires a shift from conventional to unconventional, and from trial and error to operational. Not all companies have managed to fit into the dramatic digitalization that the world is moving towards, but the best-managed organizations are continuously identifying new and better ways to redefine the way they work in the digital era.
Are you looking for strategic consulting to map the digital shift for your own organization? Get in touch with one of our IT experts!