Digital transformation - handle with care

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Digital transformation, besides sustainability, is the most important change companies must implement, especially in the customer experience. However, this change is delicate and should be handled with care. Here are my suggestions how to implement it carefully:

Digital should first add highly competitive values for most important customers
There are many aspects which can be improved with new technologies, but resources will allow only few changes. Changes which improve the experience for the most important customers should be the highest priority. In most companies this is usually a digital tool for them to manage orders and get a better and more personal services – portals for B2B and login websites for B2C. Another priority is software which compliments non-digital products.

Digitalization should not be implement only by the new people
It is necessary to add new team members in digital design, business analysis, and software development, but these new members do not understand customers, products, and the market as well as the current team. New team members are not able to quickly develop unique values because their focus is on the technology and not the specific businesses. Therefore teamwork between the new and the current team members is crucial for growth and its key component in the digitalization.

Digital channels should not cannibalize other channels
It is an error to attribute acquisition to digital channels as if there is zero-sum competition between digital and non-digital. There is no such competition and fragmentation of a company in such a way is damaging. We have a tendency to organize things into smaller parts, but in this case such fragmentation should be avoided. Customers do not care about the internal divisions, they only see one company, one goal, one roadmap, and – most importantly – values they get. Digital and non-digital are integrated and work together for the customer. Internal attribution metrics which create competition between the two should be marginalized or not used.

Conclusion is that digital transformation is a not a black and white dramatic switch but a slow process change which will continue indefinitely. Approaches which are new today will again be updated with something newer at some future point.

Written by: Nikola Tosic
Publishing date: 4 Mar 2020