The secrets of the companies which reached a significant level of digitization2017-09-27T12:57:30.000Z 2017-09-27T12:57:30.000Z According to the observations, those companies which reached a significant level of digitization, possess the advanced capability to navigate and utilize six framework units: strategic planning and cutting-edge advancement, the decision-making process of a client, computerization of the process flows, management, technical knowledge, information and its analysis. Indeed, most of the companies cant operate these six units equally and thus, focus more on one unit while paying less attention and efforts to another depending on the business model specifics or temporary market requirements. However, the fact is all these framework units are highly helpful when designing and implementing digital systems into the operation model.
Strategic planning and cutting-edge advancement
In the process of designing business strategy of the enterprise, the role of digital strategic planning is essential. More and more executives in charge of strategic drafting explore the benefits of digitization. The typical feature showing the difference between traditional and digital strategy is that the digital one refers to the future anticipations, not to the analytics of the past experiences and data. Digital approach enables to forecast changing value creation and assessment environment on the further steps of business development that are uniquely necessary to know the possibilities for a brand success or risks for its failure. And when knowing the future opportunities and threats it becomes possible to develop such digital business strategy that will deliver maximum value to the customer. In fact, digitization makes an executive able to learn how the perfect value of the customers will look like in a defined period of time, for example from three to five years, so this time can be used for developing the future model of value, not past or even present. At the same time, such new digital model is useful for long-term business structure organization, considering the changes and fluctuations of the environment, including choosing appropriate sales channels, consumers’ data processing approaches and so on.
For instance, one chain of food supermarkets envisaged near separation of a group of ‘foodie’ customers who are ready to buy more sophisticated products under higher price by collecting digital data of taste preferences of the customers in wine, cheese and delicacy departments and thorough analysis of obtained intelligence. In particular, the marketing department presented a series of encyclopedia articles in social media about history, sorts, regions of products such as Spanish wines or Swiss cheese, carefully collected the comments and wishes, written by readers, then classified and analyzed them. As a result, the analysts find out the growing trend of new customers coming who are inclined to more gourmet approach of buying food. Consequently, the company came up with a decision to establish separate chain of elite food products store under the same brand and it increased the annual income significantly.
One more specific characteristics of digital planning are that the transition from strategy to real implementation becomes smooth, as for instance, some executives draft new business direction strategies by trial product launch which gives them much more understanding whether this business plan will be successful or not instead of studying the subject just theoretically for months. For example, sales launch of new series of pharmaceutical substances analyzing devices became possible a half of year earlier than was planned after the digital strategic development team suggested to start supplying the product on the market simultaneously with announcing online maintenance guarantee service by appointing virtual technical staff whose task was to help the customer in case of a trouble detection or need for any assistance. Permanent online contact between a manufacturer and a customer compensated short-time in-house testing of the product.
Defining the strategic spot
As the companies have been practicing digital strategic planning for long enough time, the executives in charge of it can be divided into the groups due to the angle of approach and performance style:
- Extractors are those who are capable to mine maximum of the efficiency of the existing business structure and to preserve it.
- Niche-chasers systematize, optimize and prepare for use the available resources and experiences in order to enter new market niches where the business perspectives have been detected.
- Digital-backers concentrate the digital operational tools in their hands to intensify business activity in the existing segments and show the readiness to rebuild the business models of the company in order to implement more digital methods.
- Digital pioneers use the digital tools to enter new segments and to model their business to make it more competitive in terms of basic parameters such as price, quality or service.
- Eco-value-makers utilize ecological care tools along with the digital approach to create the most balanced value.