“Digital is the main reason just over half of the companies on the Fortune 500 have disappeared since the year 2000”
– Pierre Nanterme, CEO of Accenture
The above quote by the CEO of Accenture should send chills down the backs of every businessman who is not willing to bring the digital innovation into his/her business. It is not necessary to absolutely change your core competency and strategy to digital, but it is definitely necessary to make digital a part of your overall strategy.
Digital forces are shaping businesses, cost factor is now addressed using intelligent automation, cloud technology is enabling industries to capture a bigger market than ever, and traditional offshoring model is now shifting to captive firm operations. To benefit from these trends companies need to up skill their labor pool to work in collaboration with intelligent machines.
We often see organizations start to address the digital revolution by saying they will digitize their channels in the front office, addressing marketing, sales and services. However, it’s not a sustainable strategy. The back office is unable to respond and companies generate unprofitable business.
If organizations address processes only—or digitize the back office in isolation—they are unable to get the speed that is required without digitizing the front office.
That is why it is critical to address both the front and the back office to create a digital business. Companies that can combine business, function and technology to create a digital business achieve profitable growth through a digitalized business model across the entire organization.
What is a digital business? Definition: A digital business delivers growth and results by creating unique customer experiences through new combinations of information, business resources and digital technologies that produce innovative outcomes designed to meet the new expectations of the digital world. It executes a unique digital strategy that looks beyond what technology makes possible to what digital business models can make profitable.
Figure 1: The digital opportunity
These numbers have made industries recognize web as a platform worth considering. Global digital advertising spend continues to swell in recent years, the predictions from Juniper Research are estimating a $285bn spend by 2020 from current spend of US$ 160 bn. Social media websites such as Facebook are utilizing their audience knowledge to offer advertisers highly accurate targeting.
The world is changing around us and almost every aspect of business and consumer life is going digital. The impossible is becoming possible with every hour spent and it is necessary to keep up with the changes to gain an upper hand. Design companies around the world are promising the world to their clients and are able to deliver on said promises thanks to the speed and creativity provided by the digital interface. For instance, a small marketing company out Bozeman, Montana in the united States is revolutionizing the way brands market themselves on the digital platform.
They do this by using three simple steps that build around a company’s core competency. They are research, build and refine. In the research phase, the company empathizes with their target audience to understand who they are, after all, if the target customer is not interested in what a company is selling, then there is no need for the product. Once the data is found, they compare this with their web analytics, competitive benchmarks, SEO/SEM data and secondary industry information. Once all the data is collected they build digital prototypes to test ideas with real users. Once the users have been exposed to what they have built, they gather feedback and refine the entire process to achieve maximum compatibility.
Companies like Tadpull exist all over the world. Even the concept of thinking out of the box is considered out-dated now. “Instead of thinking outside the box, get rid of the box.” – Deepak Chopra. Once you get rid of the box, the possibilities are endless. Whether you have the resources to pull off all the ideas you have come up with, without the box, comes later. In the beginning however it is important to get the creative juices flowing.
Customer centric business like this are focussing on the customer experience factor of the project. “The market is not standing still. And neither are we. We have built an amazing company based on design and innovation. And now we have added the capability to deliver cutting-edge products and services into market. Big ideas executed. Products with purpose. Experience users love.” – Fjord. Let’s look at some of the services and tools that is mapping today’s digital world.
Figure 2: Digital & Innovation Disrupting Major Industries