BY STEPHAN DAMHORST
In the last years we have seen digitalization affect our lives and the market in several ways; Online marketing especially on social media, has become a common smart strategy that works. Businesses now have an online presence where companies use their own digital platform and are able to interact with consumers. This cannot go without mentioning smart phones. Whenever internet is mentioned, think mobile; Most of the activities over the internet is being done through the smart phones due to the convenience that they create.
Customer reviews are also common nowadays, whereby if you want to know what consumers are saying about a product all you have to do is go to the customer reviews segment in a page. Another major shift in the market that cannot be overlooked is the rise of tech companies; tech companies are now listing top among the most valuable businesses. Overall, the visible change in business and consumers has been the link between technology, innovation and customer experience.
What can We expect with Smart Digitalization in the Future?
Megatrend digitalization is running fast and we can expect that within next 5 years a lot of new business will be created and business processes will be digital; this may be a challenge for businesses which have not yet seriously taken up smart digitalization. Think major growth in business intelligence for smart processes. Currently, the conversion of data to descriptive analytics is common; predictive analytics is on the rise, whereby through technology data collected internally and externally is used to predict future expectations in the market. In the near future expect prescriptive analytics, which will enable a business not only predict the future market, but will also give solutions to a challenge or demand, that has not yet occurred.
However, in order for a business to be able to do this, a major upgrade of the technology will be required. Secondly, a rise in augmented reality is expected. For instance, Amazon through an app is able to make the shopping experience of its consumers real, in that they are able to see how apparel will look on them. Thirdly, expect an upgrade in the Internet of Things, as it is commonly referred to. People will not only be able to link such devices as phones and computers through the cloud, but also other Smart Home appliances as fridges, locks systems and so on.
Smart digitalization for your Business
In this case, what does smart digitalization mean for your company? Innovation propelled in a bid to meet new demands and compete smart and effectively in the market; efficiency and cost benefits through smarter processes and improved employee experience. Market competency since companies are already going digital; improved consumer experience, whereby most businesses are now anchored towards meeting the need of the consumer through a more personalized experience by the use of smart technology.
No longer do businesses dictate what consumers will get, rather, we have come to a point where consumers are in control of what they want. For this to be possible smart technology that will use data to describe, predict and even prescribe smart solutions is required. Consequently, this will mean more business for smart businesses such as Amazon, which may actually even end up swallowing other businesses that cannot keep up.
On the other hand, with the growing trend of smart digitalization, an organization may be tempted to keep up without thinking through a strategy. However, research is showing that a digital strategy, rather than just digital technology, is important when a business is digitalizing. A business or organization should consider the following digitalization strategies when going smart:
The Vision and goals of a business
First, what is the business’ vision and goals? What are its current objectives and the ones it seeks to achieve in digitalization? Why is the business going digital? To keep up with a trend, other companies or for the growth of the business; rather than just introducing a technology into the business, the business should focus on how it is going to benefit from going digital. In this case, the digitalization process should be built around the business and not the business around it. The business should also consider both the pros and cons of the process of digitalization. Different parts of the organization that may suffer from the process could be envisioned again.
Opportunities and gaps in the market
The business should observe the market, consumers, as well as the competition and take advantage of the opportunities and gaps in the market. For instance, Mpesa, by Safaricom easily occupied the gap that existed in the banking service market, whereby consumers could conveniently send and receive money through their mobile phones; talk smart transactions. In relation to this, business should also possess agility. This way it is able to act first when there is an opportunity and also in the event where it may need to fill the gaps in its own department. This may mean educating and empowering the employees with new skills needed in digitalization.
Involve different stakeholders
What about involving stakeholders from various departments, such as the sales and finance team in the business as well as investors? One of the mistakes that a business could make is leaving the digitalization process entirely to the IT department; then it is at risk of being just another add-on, rather than an opportunity for business growth. The employees should also be informed about the digitalization process, so that they can also take part by giving feedback and participating.
Start Small and Grow
Rather than transforming the business completely, the company should start small. This ensures that it is able to observe how the target market is reacting to or receiving the changes, thus adjusting and growing in accordance with this feedback. In this case, the business should focus on customer and employee experience, generation of revenue, decision-making and innovation. The business should also remember that the end product should be something that a consumer can adopt. Additionally, in order to have a great impact in the market, the product should stand out; it should be unique, something that a consumer can remember and have a great experience using. For instance, Burberry uses a service known as Clientelling, where a customer is given a tailored shopping experience by logging into the service and their history for personal preferences is checked.
Employ the “lead by example” strategy
One more strategy that a business can employ is to select a person or group that will lead the digitalization process. This will increase the confidence of the employees in the company’s digitalization capability. It could also influence them to be more involved in the transformation. For instance, a department head could lead by example, by showing digital fluency or interest. It could be something as simple as having an online presence and may not necessarily require the people to have much knowledge on technology.
The smart decision that a business can make today is to go digital, before it is eaten up by smart businesses. As a business that needs to compete effectively, if you are not going to go digital today, you will have to tomorrow. Only that tomorrow may mean that smaller businesses and competition will be ahead. Just observe the market, where some years businesses that were considered small are taking over the market from previously dominant companies.
Writer is an independent cloud computing expert, coach and book author – Cloud Computing and ISAE 3402”
