With market becoming highly commoditized, it has become difficult for any enterprise to survive if it fails to differentiate. In order to remain competitive, it has become essential for enterprises to innovate continuously. Innovative products and services will not only help enterprises increase their customer base/reach, but also help in improving process efficiency by adopting & implementing new, advance frameworks and technologies.
Few years back, smartphones, social networking websites, tablets, big data analytics, cloud-based ecosystem didn’t exist or were still struggling for wider acceptance. However, today, the convergence of some of the new technology areas – M2M communication, Machine learning, deep analytics, social, cloud and mobile technologies have emerged as the key drivers of digital era. Digital era will play a crucial role in defining the next fifteen years, where digital technologies and platforms will have a significant impact on how businesses have been done earlier,
As per our research estimates, over USD 30 trillion of market capitalization would be disrupted by digitalization. This disruption will impact 7 key industry verticals including Retail, Media & Entertainment, Travel & Hospitality, BFSI, Telecom, Healthcare, and Energy & Utilities.
This also indicates that in the next 2-3 years, over 550 companies in the Forbes 2000 list would move out, and be replaced by organizations that are far more tuned to a digital universe.
In the age where economies across the globe are extremely intertwined, power will rest in the hands of consumers with the role of consumers not restricted to buyers only. Consumers having access to significant technology resources are playing a key role in determining how businesses need to evolve. With businesses being forced to offer new age products and services, digital age will witness emergence of organizations that co-create with customers. Changing customer requirements are forcing businesses to change their entire outlook, undertake structural changes and implement the same at a rapid pace. Businesses that fail to match pace might fail to survive!
Among all verticals, retail industry has been impacted the most by digitization. Digitally native retailers have fundamentally changed the business and operations landscape, and consequently moved ahead of the pack. Digital native retailers such as eBay and Amazon are targeting customers and engaging with them in newer & innovative ways via a range of channels. These companies not only analyse the data they collect but also use 3rd party data sources to understand what a customer is looking to buy. Subsequently, they try to engage customers only in their areas of needs and wants. The customer experience is hyper-personalized using machine learning techniques and complex algorithms.
The usage of digital solutions, technology and platforms is not limited to the retail segment only. With new technologies driving changes and creating a vast amount of qualitative and quantitative data, sports and entertainment businesses are also at an inflection point. Recently, Shahrukh Khan’s Kolkata Knight Riders (KKR) leveraged SAP analytics solutions to choose the playing team that had the maximum chances of winning the tournament. The digital solution helped KKR turn data into actionable insights and gain competitive edge by increased understanding of player availability, reliability, readiness, and performance.
The exponential disruption in today’s world by the digital natives has made it imperative for traditional enterprises to transform. Their only solution for staying relevant is Enterprise Digital Transformation (EDT).
Customers’ changing requirements along with the need to remain competitive in business have set the right momentum for the companies to reorient/restructure their core strategies aligning them with digital channels. Today, companies are undertaking digital transformation at varying paces, experiencing success as well as facing roadblocks. The digital transformation initiatives undertaken by organizations, which have proven successful, are typically focused on changing customer relationships and experiences (customer engagement), process excellence (business process) and operational excellence (business model).
Today consumers prefer products and services that match their tastes and preferences, and are personalized. Enterprises are deriving advantage of the data generated in years to gain an in-depth understanding of specific market segments and geographies.
In addition, enterprises are using digital solutions to engage with their customers, create awareness among them about new products and build brand loyalty. Today, businesses have shifted from traditional transaction based short term interactions with customers to long term relationship-building engagement models.
With customer being increasingly empowered, enterprises are striving to maintain a competitive edge by offering personalized experiences, customized promotions and omni-channel facilities for a consistent experience.
With market becoming increasingly dynamic than ever before, standard business process are no longer relevant in digital era, and are being replaced by adaptive processes.
With growing competition in the market, it doesn’t take time for customers to jump from one ship to other if they don’t experience satisfactory experience across digital channels. Therefore, for ensuring customer retention, attracting new customers, enterprises have started building agile business processes which are customer-centric. This will help enterprises in handling any design and process change in step with changes in the market, thus ensuring reduced time for new product development and faster addressal of consumer complaints.
Operating model plays a key role in achieving business excellence.
Digital transformation requires faster go-to-market in order to cater to its dynamic nature. The processes for Enterprise Digital Transformation (EDT) need to be incremental and iterative; and thus agile methodology needs to be implemented.
Zinnov has developed a four-step agile EDT process/methodology for all traditional enterprises undertaking the Digital Transformation journey. The process involves building EDT knowledge base and evaluating possibilities, assessing business and digital priorities, establishing a step-by-step methodology for digital readiness, and subsequently implementing digital solutions incrementally and iteratively.
Enterprise Digital Transformation (EDT) is the need of the hour. It is the most revolutionary thing that has happened since e-mail. Digital enterprises reap manifold benefits, tangible and intangible, ranging from increase in top-line and bottom-line, growth in customer base, high customer satisfaction, and improved productivity.
Enterprises that will adopt digital transformation will be successful in creating a vision for how they will use digital technology for customer engagements in new and innovative ways, and even re-think about re-structuring their operations aligning them with digital channels.