Business transformation is a continuous process
01/10/20
The changing reality poses a demanding challenge for all organizations: quick response and adapting the business to new, often surprising conditions.
Unforeseen events not only change the behavior of customers and their expectations, but also affect the legal and regulatory environment, and sometimes force the introduction of completely new models of the company's operation.
Is it possible to ensure the company's stability in the face of constant changes and uncertainty? Yes - through a comprehensive business transformation, covering both internal, operational activities as well as those related to customer relations. To be effective, it should cover 3 priority areas:
- Consumer activation
- Strengthening digital channels
- Operational efficiency
New technologies and data play an important role in each of them, which help to: automate processes, strengthen customer experience and customer loyalty, and optimize pricing policy, implement new sales channels or improve marketing activities.
Sudden immersion in technology
The digital transformation as a result of the COVID-19 pandemic has become the No. 1 business priority. After ensuring the safety of employees, it was the most important challenge for owners and managers. Digitization enabled not only the continuity of operation of most organizations, but also allows their development in the "new normality".
Remote work, videoconferencing, e-commerce, digital advertising, online media, contactless payments, cloud solutions, e-entertainment, e-learning, e-services, e-sport, e-government ... steady during pandemic isolation massively used solutions. They made it possible to survive the difficult period of social distancing and to make people aware of the need to modify business models.
Models of implementing Digital Transformation
Digital transformation is the use of digital technologies and data to leverage the operations of an organization. This could mean doing totally new things and it could also mean doing the usual things but in a different way. It could, however, also mean that the two approaches are combined.
Organizations may make use of old, well-known operating methods using new digital solutions, or function according to completely new business models, products or digital services in a totally innovative way, which had been impossible to adapt for use in the analogue world.
However, we should remember that transformation is always a process, which evolves. It is not a revolution. Therefore, taking small steps, of which there were very many during the first months of the pandemic, is the natural form of proceeding for organizations which were still digitally immature, yet had to react to the current crisis. These first steps provide an excellent foundation for planning further moves which will lead to wider digital development. As a result, firms will be able to automate whole processes end-to-end, use all the data collected by the organization in real time to operate, and not just to carry out analyses, optimize costs, increase revenues, reach out to new groups of customers, prepare innovative products, etc.
Doing old things in the traditional way is maintaining the status quo, nor does doing new things in the old way constitute digital transformation but is simply an attempt to combine the two worlds (the physical and the digital).
Examples of products /services /functionalities in digital transformation implementation models
Is the time right for dealing with technology?
The situation has forced companies to use technology on a wider and more in-depth scale. In a very short time technology had to be made available to employees, and those who had not yet used digital tools to such a large extent had to be upskilled. The next step consisted of using technology to establish and maintain relationships with customers. Many organizations, both small and large, which to-date had not used the Internet in their operations, started doing business over the Internet. They chose simple solutions with a limited range of functionalities, which nevertheless allowed them to provide services, sell products, and to ensure customer service through a channel they had only just begun to explore.
In the short term all these actions provided the necessary foundation for revenue protection strategies.
However, the uncertainty inherent in the “new normalcy” brought about by COVID-19, makes us think about further development in this area and forces us to plan further steps down this road. On the one hand consumer behaviours may change in the long term as a result of losing their sense of security, social distancing, and the need to work remotely. On the other hand the habits that are currently being formed will, to some extent, certainly have an impact on customer choices in the future. Paradoxically, those users who were thrown in at the deep end underwent a crash course in life over the Internet and digital upskilling. This undoubtedly provides an opportunity for companies that had been hesitant and did not build their presence online, did not use modern IT solutions or engage in remote work on a wider scale.
Key areas that will help develop a competitive edge
Data
With the increasing activity of firms and customers in the digital world, the volume of data will also increase. We should remember that data can include not only demographic and technical data on the users’ equipment, but also their behaviours in the Internet (behavioural data). Both behaviours on our websites or in our applications and the manner in which consumers move around and what catches their interest in other areas of the World Wide Web.
Moreover, the emerging business changes will result in decisions, such as marketing decisions based on data and its high effectiveness, being particularly important. Effective acquisition, management and use of data will be of key importance for many organizations and necessary in their battle to gain the customers’ interest and cash.
CDP (Customer Data Platform) technological solutions will help, as they will not only enable building customer databases and gaining insights, but also their fast and efficient activation in digital marketing channels.
CRM (Customer Relationship Management) tools should also be kept in mind – they should be implemented if the organization is only just starting on the path of digital transformation, or integrated in a wider marketing data ecosystem, so as to use their potential to the maximum.
Contactless technologies
It is highly probable that all solutions that use contactless technologies will gain in popularity. We expect customers to focus increasingly on their own physical safety and many of the respective solutions will become an essential part of their preferences and new behaviours.
Firms that care about customer experience will be forced to redesign their services and products to include that aspect of behaviour, which not only builds a sense of safety, but actually protects customers.
The popularity of contactless payments, self-service tills or contactless receipt of parcels from automated parcel stations are solutions that are already on the market, and which are very much appreciated by customers during the pandemic.
Remote solutions
New consumer habits will be formed in the area of remote entertainment, education, work, commerce, health, communication, media consumption, participation in sports and entertainment events, etc. While some firms are able to digitize the distribution and sale of products, acquisition and servicing of customers, or even the products or services themselves (VOD, e-Books, press e-subscriptions, e-training, e-sports events and concerts, e-Prescriptions, e-IDs...), in these industries the production of goods still requires analogue, mainly blue collar, work (often work in teams that cannot be accomplished at a distance).
Therefore, if the Covid-19 pandemic lasts longer, firms that more efficiently combine both worlds will have a better chance of coping with the crisis firms that use technologies to leverage all parts of their organizations and natively digital businesses, e.g. software houses, IT infrastructure providers and online platforms. In this group financial services companies have particularly interesting prospects, most of which have been digitized in the area of customer service, and potentially new projects, will only serve to reinforce the segmen.
Automation
Mature digital solutions ensure a higher level of self-service to organizations without the need for day-to-day IT support. Self-service systems concern both the employees (group work in the cloud, team communication, video conferencing, information seeking, digital advertising, sales and customer service, HR and payroll, etc.), partners (design management systems, production, orders, logistics, warehousing management, B2B fulfilment, document flow systems, electronic signatures, etc.) and consumers (e-Commerce, chat/voice bots for customer service, BOK selfservice, e-Banking, e-Government).
Automation also enables the integration of digital data flows and process flows between various IT systems in the whole organization (API) and process automation e.g. via Robotic Process Automation (RPA) solutions. In some instances digital solutions, after the implementation and user education stage are practically self-servicing and do not need human participation to maintain their operation.
Taking into consideration the potential changes in the functioning of society and firms caused by the COVID-19 pandemic, such solutions will not only increase the effectiveness of enterprises, but will also facilitate the organization of work.
Infrastructure
All the above technologies, however, require stable and scalable infrastructure that gives the ability to maintain performance while increasing its load. Starting with the cloud which enables both group remote work and delivery of SaaS model business applications. Through the flexible, unbroken chain of goods deliveries to stores, or to end customers, ensuring safe warehousing, fulfilment, etc. Up to the infrastructure enabling businesses to produce goods without interruption, JIT monitoring, protection against break-downs and business interruptions.
The publication is for information purposes only and does not constitute advice on instructions regarding Polish provisions. Actions / decisions not taken into account by you regarding the content of the information contained in this publication without first giving professional guidance
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