DEVELOP A DIGITAL STRATEGY

DEVELOP A DIGITAL STRATEGY

Digitization at its simplest means the conversion of analogue information into digital information. As digitization capabilities extend, virtually every aspect of life is captured and stored in some digital form, and we move closer towards the networked interconnection of everyday objects.

Many companies are already developing responses to the challenge of digital by moving from a transactional to an ‘interactional’ relationship with their customers. They are inviting their customers to become part of the R&D process, the design process and the go-to-market. They are also encouraging them to participate in the post-sale support process, and taking advantage of ‘prosumerism’ as a low-cost way to provide service. However, forward-looking companies need to do more than this. To succeed in the digital world requires embracing innovation and identifying new engagement models and new business models. It requires grasping new opportunities that exist outside traditional markets and looking for the tools that will differentiate between the mere suppliers and the ‘lifestyle partners’ of the digital age. We believe that the digital revolution, and its consequences, offer a great opportunity to transform. However, capturing the rewards of a digital world requires considerable commitment and a proactive approach. It is not enough to have a social media strategy. Companies need to develop a comprehensive ‘digital strategy’ that reaches far beyond the marketing department to tackle issues like ubiquitous cross-channel connectivity, social commerce, and the threat of commoditization. Creating and adopting a strategy of this kind requires strong senior leadership, a focus on the customer experience management, and innovation within the operating model.

The need for new business and operating models There are important lessons to be learned from the internet revolution. Firms that have capitalized on its possibilities have rewritten the rules of entire industries such as music and advertising, and internet-enabled business models such as cloud computing have experienced tremendous growth. It is this transformation of business and operating models that is needed to stand the test of time in the digital era. This lesson is starkly illustrated in the high-street by the failure of many bricks and mortar business models to adapt to the threat of Amazon. To be successful now, we believe, requires no less than the creation of enhanced or new business models, new operating models, new ways of interacting with consumers, and new ways of selling. Even the giants of technology are recognizing the need to shift and adapt business models. A commitment to innovation means that even giants need to be agile.

Conclusively, Organizations therefore need to develop end-to-end digital engagement strategies and comprehensive digital operating models that address suppliers and employees just as much as customers. They must decide whether they can enhance or transform their existing models, or whether they need to invent a new model.

By:  ULAYA SIJALI A. (BAPRM 42681)