The world is undergoing a digital transformation. For example, there will soon be over a billion smartphones, impacting all aspects of organizations’ value chains, commerce, and customer and supplier engagement processes. This transformation will result in an explosion in digital data and more importantly, usable insight.
And the smartphone isn’t the only digital technology driving business transformation. Other technologies like sensors, beacons, scanners, RFID (radio frequency identification), NFC (near field communications), GPS (global positioning systems), Bluetooth, web clicks, social media postings, digital newsfeeds, smart watches, fitness bands, video surveillance, drones, robotics, etc. are all contributing to the digitalization of our physical world.
Framing The Digital Business Transformation Discuss
Digital business transformation accelerates, communications, and improves coordination across an organization’s value chain (design, procurement, inventory, manufacturing, shipping, marketing, sales, support) yielding massive amounts of detailed data about individual customer, product, and operational, usage, performance and current state data, that can be converted into new digital intellectual assets (curated data, analytic models, real-time scores, behavioral profiles, edge analytics).
However, the more important digital business transformation opportunities lie in the “make money” aspects of the business transformation. Here is where organizations can have a game-changing impact on their value creation processes through the superior insights gleaned about the organization’s customers, products, operations, partners, channels and markets. These game-changing impacts manifest themselves in three ways:
- Optimize key value chain processes. Exploit superior customer, product and operational insights to not just improve existing business processes but to actually change or re-tool the entire process.
- Uncover new monetization opportunities. Leverage superior customer, product and operational insights to identify “white spaces” or under-served, un-served or un-met market that yield new monetization opportunities (e.g., new products, new services, new partners, new channels).
- Create a more compelling, more prescriptive customer experience. Leverage an understanding of an individual customer’s tendencies, preferences, behaviors, propensities, trends, interests, passions, associations and affiliations to provide a more rewarding customer and partner experience.