Needless to say, Covid-19 is going to bring a paradigm shift to our very well-known business world. The billion-dollar question of survival in the post-Covid world is –
“How can I keep up with this change?”
I have discussed earlier in a number of marketing and business strategies that can be effective in the current situation and for the future as well. But today, in this article, another very important topic would be the center of our discussion. And that is – Digital Transformation for Business Growth.
What is Digital Transformation for Business?
For the convenience of discussion, let us first define “Digital Transformation for business –
“Digital transformation for business is about doing business differently using technology in every area of business; This will fundamentally change the business, provide new value to the customer and bring exciting market growth. ”
Recently I was studying a study at MIT – companies that have embraced digital transformation are 26% more profitable than their competitors! Companies like Microsoft, Best Buy, Nike, Target have undergone digital transformation in the last 2-7 years and the stock price has increased from 53% to 258%. Interesting thing is this study but before the Corona epidemic. In the current situation, digital transformation is extremely important to ensure business survival and growth.
In this article we will discuss in detail the most important Digital Transformation Strategies, see how the world’s leading companies are implementing them, and most importantly point out how you can easily implement these strategies in your company.
Who Does Digital Transformation Apply to?
Digital transformation is not just a matter of big companies. Using the right Digital Transformation Roadmap, startups, SMEs and companies like Fortune 500 can bring growth to the business. Again, it’s not just businesses that will think about digital transformation.
Organizations such as the United Nations and the World Trade Organization have put Digital Transformation on the agenda of their Sustainable Development Goals (SDGs), and they are working on it worldwide. In Bangladesh too, the UN-affiliated ITC’s SheTrades Commonwealth Program is providing training and mentorship to many SMEs through the “Digital Transformation” project.
On the other hand, the owner of one of the top ten Group of Companies in Bangladesh was interested in working with me on Digital Transformation and Digital Strategy a few days ago. This futuristic vision of a company that has been in traditional business for almost eighty years can be a source of inspiration for everyone else. So, in a word, it is time for any size business in any industry to give top priority to Digital Transformation.
Digital Transformation Focus Ares
Digital transformation strategies can vary from company to company depending on demand and challenge. Yet there are some common areas that apply to almost all cases.
In this article, I will discuss in detail the five main areas of digital transformation in business that I think are important:
- Customer Experience
- Business Model
- Business Process
- MarTech and Digital Marketing
- Culture & Human Resource
IDEAN Consulting is trying to create an easy-to-implement Digital Transformation Roadmap for everyone at the moment.
For now let’s discuss the area in detail one by one.
1. Customer Experience
At the heart of the digital transformation is the Seamless Customer Experience. Like many traditional businesses, the world-famous brand ‘The Happiest Place on Earth’ and Disney were watching customer satisfaction and revenue drop day by day.
To get rid of this, they created the Disney Digital Transformation Roadmap. The centerpiece of this roadmap from Disney’s One Billion Dollar is the Custom RFID MagicBands wristband, which will help give guests a seamless and friction-less experience.
Disney’s holistic digital transformation for business also includes a complete redesign of the DisneyWorld.com web portal, 30 million square feet of WiFi coverage across Disney Park, and more.
Not only B2C like Disney, B2B companies can also radically change the customer experience through digital transformation for business. For example, if you are in B2B, you can train the sales team to do Social Selling using a social platform like LinkedIn instead of Cold Calling. (Sujan Patel’s ‘The Customer Delight Playbook’ is a great resource for customer experience design, you can download it from Google)
2. Hassle Free Service
In the world of social isolation, customers demand customized products, the guarantee of risk-free shopping, fast delivery, easy return or refund policy, etc. That’s why Amazon’s Human-Contactless Drone Delivery Project is now a top priority, as well as their Mindblowing Refund Policy.
Unfortunately most of the above mentioned are missing in our country, special refund policy. Most businesses take an attitude of ‘Paichi Re Paichi’ type once the customer’s money is in their pocket and do not want to refund under any circumstances. This loses the golden opportunity to create a long time loyal customer, and does not increase the customer lifetime value.
Jay Abraham, currently the highest paid marketing consultant and strategist in the world, has a famous strategy called Risk Reversal. In the words of J. Abraham – “When you take away the risk to your prospect or client, you lower the barrier to action, thus eliminating the primary obstacle to buying. And that’s what you must do. ”
I see most ecommerce companies in Bangladesh want to be Everything Store ‘Amazon’ from day one! However, Jeff Bezos details in his biography how they did the category extension only after first ensuring full operational efficiency and customer satisfaction with just one product category (book).
I therefore encourage ecommerce entrepreneurs to read the book ‘Delivering Happiness’ written by Zappos CEO Tony Hsieh. Customer experience is the key to their business. Even Amazon finally bought Zappos itself for $ 1.2 Billion. If everyone tried to be Zappos rather than Amazon, the country’s ecommerce industry would have developed so much more!
Recently I read a number of other interesting topics in ‘The Curious Case of Evaly’ mini case study, a must read local story if you haven’t read it before. (By the way, digital transformation means but not just eCommerce. I will have some very important discussions in the business model area)
3. Data-Driven Customer Experience
It is possible to provide much more dynamic, responsive and personalized customer service through data and analytics. Companies like Amazon and Netflix have taken data analytics to a legendary level. You must have noticed how personalized recommendations are given every moment you enter their website.
Behind this are the unbelievable data analytics and decision making capabilities of these companies. As Amazon is increasing the value of its shopping cart, so is Netflix forcing me to binge-watch (series of recommendations – you can try Netflix’s ‘How to sell drugs online (fast)’ series)!
Hopefully, we can see the use of enough data analytics in many companies (especially startups) in Bangladesh. From the very beginning, ride-sharing company Pathao has increased its market share in bike riding through its pricing, customized offer-based on user behavior, despite having competitors like Uber.
4. Omni-channel Customer Experience Through Digital Channels
Omnichannel Customer Experience refers to providing service and experience to the customer in a unified and consistent way in multiple touchpoints.Digital customer service will proactively solve customers’ problems without waiting for phone calls, emails or messages. For this you need to use wide range of support channels such as – social media community and groups, review sites and forums, FAQ section of the website, etc.
In today’s world of ultra digital business, all the necessary information for the customer must be available online. And the customer has to be adept at showing customized content. This is why DIGITAL DATA DRIVEN customer experience is very important.
According to Forbes statistics – companies that can offer a strong omnichannel experience are able to retain 89% of customers, with a weak experience giving only 33% retention.
Final Words | Digital Transformation for Business Growth
In the world of growing technology, many businesses are getting lost in the discussion of Data Science, Artificial Intelligence, Internet of Things, Blockchain, Big Data, Augmented Virtual Reality, etc., wondering what to do and what not to do.
But I would suggest you to take full advantage of the most basic and primary digital technologies without having to worry about so much. For example – Strong Social Media and Digital Presence, Solid Digital Strategy, Data Analytics etc.
The key here is to optimize the customer’s journey using digital channels in your business and make it hassle free. Once the basics are strong, you can gradually adapt to advanced digital strategies.
I am finishing here today, in the next episode I will write about the business model and how to integrate digital transformation in the business process. And if possible, I will try to give a DIGITAL TRANSFORMATION ROADMAP when all the writing is finished.
Hope, this article helps you to know more about the digital transformation for business and its contextualized aspects. Looking forward to your valuable comments and discussions in the comments.
Mark Anupom Mollick is an experienced Software Engineer and business consultant for tech companies. He loves to read from his 500+ books elibrary or watch Netfilx while enjoying a bar of chocolate! Fell free to reach Anupom at [email protected] or contack via LinkedIn