What does the “number” really mean
Everyone wants to go digital. The first step is to really understand what this means.
Companies today are eager to become more digital. But what does Numbers mean?
For some executives, this is about technology. For others, Numbers are a new way to communicate with customers. For others, it represents a whole new way of doing business. These definitions are not necessarily incorrect. However, this pluralistic view often attracts the interest of the leadership team because they reflect the lack of a coherent view of where the business needs to go. This tends to lead to sporadic or misleading efforts that lead to missed opportunities, underperformance or failure.
Even if ceos push the digital agenda, it’s worth pausing to clarify words and improve language. Enterprise leaders must clearly understand what for their digital means is, therefore, what that means for their business in order to have a thorough understanding of enterprise how to develop meaningful digital strategy and improve business performance, please refer to the “improve your digital quotient”).
It’s tempting to look for simple definitions, but in order to make sense and sustainable development, we think Numbers should be seen as something, rather than a way to do things. Definition in order to make this more concrete, we break it down into three attributes: new areas to create value in the business world, customer experience vision in the implementation of the process to create value and build ability to support the foundation of the whole structure.
Create value in new areas
Digitization requires a review of your entire business approach and understanding where new value boundaries are open. For some companies, capturing new areas may be about developing new businesses in adjacent categories; For others, it may be about identifying and pursuing new value reserves in existing departments.
Unleashing the value of emerging growth industries requires commitment to understanding the impact of market development and assessing how they present opportunities or threats. The Internet of things, for example, is beginning to provide destroyers with unprecedented data accuracy to identify defects in existing value chains. In the automotive industry, cars connected to the outside world have expanded the frontiers of self-navigation and in-car entertainment. In the logistics industry, sensors, big data and analysis use enable enterprises to improve the efficiency of supply chain operation.
At the same time, digitalization means that it is closely related to the broad development of the customer’s decision-making journey. This means that to understand how the customer’s behavior and expectations inside and outside your business development, as well as your outside the industry, or to go beyond this may involve the trend of damage value is crucial.
Create value in the core business
The next element of Digital is rethinking how to use new features to improve customer service. This is based on a deep understanding of each step of the consumer’s purchase of the journey (whatever the channel) and how digital capabilities can design and provide the best experience across the business sector. For example, the supply chain is critical for improving flexibility, efficiency and speed, and delivering the right products efficiently in the way that customers need. In the same way, data and metrics can focus on providing insight into customers, driving marketing and sales decisions.
Crucially, digitisation isn’t just about providing one-time customer journeys. This is an ongoing cycle of dynamic processes and capabilities based on customer input to promote sustained product or service loyalty. To do this requires a set of four core functions that are interlinked:
Proactive decision making. Relevance is the currency of the digital age. This requires making decisions based on intelligence, providing personalized and relevant content and experience to customers. Remember that customer preferences are a basic example of this ability, but it extends to the next step in personalization and optimizing customer journeys. For example, data providers such as ClickFox integrate data from multiple channels into a view of what the customer is doing, and the resulting results. In the background, analytics and intelligence provide near-real-time insight into customer requirements and behavior, then determine message types and provide to customers.
Context interaction. This means analyzing how consumers interact with brands and modifying these interactions to improve customer experience. For example, content and experience may adapt as customers move from mobile phones to laptops or from evaluating brands to making purchasing decisions. The increasing number of customer interactions generates a range of intelligence that enables brands to better determine customer needs. The rapid rise of wearable technology and the Internet of things represents the latest wave of contacts that will enable companies to integrate more digital and physical experiences.
Real-time automation. In order to support this dynamic with the customer and help them complete a task, it now requires extensive automation. Customer interaction of automation can increase the number of self service options, help to solve the problem quickly, make personalized communication, make it more relevant, and regardless of the channel, time or equipment, can achieve consistent customer journey. Automation of the supply chain and core business processes can reduce costs, but it is also critical to provide companies with greater flexibility to respond and anticipate customer needs.
A journey centered innovation. Provide customers with services to enable the company to interact and sell with customers in innovation. This might include, for example, extending existing customer journeys to new businesses and services that extend relationships with customers, ideally for the benefit of both parties. These innovations, in turn, promote more interaction, create more information, and increase the value of the customer’s relationship with the brand.
Build basic digital capabilities
The last element of our definition of digitalization is the technology and organizational process that allows companies to be flexible and fast. This foundation consists of two elements:
State of mind. Digitization USES data to make better and faster decisions, to delegate decision-making to smaller teams, and to develop more iterative and faster ways of doing things. Such thinking should not be limited to a few functions. It should include a wide range of corporate operations, including creative collaboration with external companies to expand the capabilities necessary. The digital way of thinking makes cross-functional collaboration institutionalized, flattening the hierarchy and setting up the environment, encouraging innovative thinking. Incentives and indicators are developed to support such decision-making agility.