Why Digital Transformation?
Go Digital or Go Bust – Digital Transformation is the new norm. Digital adoption is not optional anymore for the enterprises, it is mandatory to run a successful business. The organizations that were leaders in their own industries and were reluctant to change failed to adopt Digital fast enough. This has resulted in their downfall. Following are some examples:
Customer Experience is the key for any successful business. Due to evolution of internet and mobile technologies, organizations can now deliver best experience to the customers with rich digital capabilities. Following are some of the key points with enhanced Customer Experience.
- Improve Customer Understanding with Analytics – customer behavior, segmentation
- Enhance Top-Line Growth with digital products like smart Phone, iPads, real time predictive marketing
- Digitized Customer Touch Points – Social media to answer complaints, self service via Apps, increased multi-channel usage
Following is a case study of Airline Industry that gives a good picture of importance of Digital Enablement for best CX:
Flight Booking – Customer Experience before Digital:
Few years ago, following was the customer experience while booking flight. Airlines used to issue e-ticket when a customer booked a trip. During the day of travel, customer used to take the e-ticket to airline counter and stand in the lines to get a boarding pass with seat allocated based on their seating preference.
Flight Booking – Customer Experience after Digital Transformation:
Since most of the airlines and online travel sites started on their Digital journey – now, if you book a flight ticket online, right during the online booking process, customer is provided with flight cabin map with seating options available for the customer to pick. With this feature, customers can pick their preferred seat right when they are booking their flight online. Not only pick the seat but also do online check-in and get a electronic boarding pass so that they can avoid big lines at airline counters for seat assignment and boarding pass during the day of travel.
Customers can now directly walk to the security check with electronic boarding pass (a paper print or displayed in a smart phone), get through security process and board the flight directly. This is a great example of tremendously enhanced Customer Experience because of Digital Enablement. Just imagine of an online travel site or airline that doesn’t offer this type of User Experience. There is a great chance of prospective customers picking an alternate airline or online travel site that offers this experience – resulting in loss of business/revenue.
- Process Digitization with automation, adding new features
- Staff Enablement with virtualization of work space working anytime, anywhere
- Performance Management decision making based on data with deeper insights into Customers, Products, Regions
New Business Opportunities
- Digitally Modified Businesses – augment physical with digital offerings, share contents across organization
- Introduce New Digital Businesses – Nike introduced fuel bands
- Digital Globalization – use of Global shared services to promote efficiency, from multi-national to global presence
One of the key goals with Digital Transformation is to bring some of the back office operations directly to the customer for best customer experience. As a result, it enables organizations to run their business more cost effectively.
Today every part of the business is subject to new expectations, competitors, channels, threats and opportunities. Every business has the potential to be a digital business. As the number of smart, connected devices from phones to cars to wearables are growing, companies that quickly deliver digitally instrumented products or services, will be those who reap data from market interactions. They will use insights to rapidly optimize their value chain for gaining competitive advantage.
Businesses that digitally transform will be able to connect more closely with customers. They would be able to speed up the pace of innovation and, as a result, claim a greater share of profit in their sectors. Today, digitally transformed companies have an edge; tomorrow, only digital businesses will succeed.
Companies like Nike and Burberry have moved from being providers of traditional consumer goods to digital leaders. They are creating value across physical / digital products, services, and experience.
It’s the digital lives of customers that are changing the rules of engagement, and Customer’s loyalty grow stronger for the brands that keep pace.
Companies in all industries and regions are experimenting with — and benefiting from — digital transformation using social media, mobility, big data analytics & cloud.
Adapting quickly to this change is becoming a make-or-break proposition for many companies worldwide.