Business model change is inevitable, and digital transformation has become the rule rather than the exception. As a result, the task of scaling operations and creating new sources of revenue has fallen on the shoulders of IT leaders and executives.
Functioning as commanding officers and influencers on the digital frontier, it is their job to mediate between business strategy and new disruptive technology. The challenge is developing systems flexible enough to support the continuous innovation needed to maintain a competitive advantage—those who have succeeded leave behind clues and insights into the process of becoming a truly digital enterprise.
Upgrade Operations
Establish a workflow that mimics automation
There are many ways to influence revenue growth, but the most accessible tactic is to optimize labor costs. For instance, consider the different touchpoints and daily transactions within your current business model. What medium of communication is the most utilized by employees for internal and external engagement? Identify areas of friction and think about solutions. More specifically, are there any analog processes or services (phone, face-to-face, fax, pen and paper, spreadsheets) which could be better served through a digital application or software?
Empowering employees with the right technology to get more done in less time is the first crucial step to scaling up and gaining more customers.
KPI examples for measuring ROI:
- Identify the number of departments utilizing new technology
- Estimate how much time are employees saving
- Evaluate percentage of productivity gains from new technology
Define Data Strategy
Leverage data for audience insights
The use of IoT technology and analytics can bring added value to different aspects of your business. First, you have to decide what information would be the most valuable and figure out the best technology to acquire it. Identifying the right data is a critical step because it will determine the type of information available to influence ideas and innovation. Finally, once collected and analyzed, this data should inform your strategy for delivering services and engaging with your customer base.
A successful digital enterprise is customer-centric and data-informed. Setting up this business model puts your company in a position to make low-risk, highly-calculated decisions based on user data and operational trends. After all, the ability to use technology, data, and human innovation to discover new ways to access more customers is the veritable pot of gold at the end of the digital rainbow. Consequently, these companies often come to lead the market with superior service features offered at scale and on budget.
KPI examples for measuring ROI:
- Assess percentage of revenue gained through digital channels
- Extract new understandings of customer needs and behaviors
- Calculate innovation success rate (successful ideas / total ideas explored)
Break Protocol
Embrace flexibility as the new normal
Legacy systems are not designed to accommodate mobility, flexibility, or customization. Accordingly, this unyielding business model can be stifling if not suicidal in the digital era. For many businesses, the goal is to transition from one-and-done products to a service-minded model with continuous engagement and delivery. For some, this can take the form of joining the circular economy. For others, thanks to cloud computing, embracing the “Anything-as-a-Service” (XaaS) model is the fastest route to digital transformation. This model has become such a widely successful strategy because it can accommodate changes, updates, and scaling without sacrificing security or quality of service.
KPI examples for measuring ROI:
- Determine percentage of customer interactions that are digital
- Estimate time savings being delivered to the customer
- Identify the number of customer interactions with a specific application
Digital transformation is about integrating new disruptive technologies with existing infrastructure. Although there will be some compromises along the way, it is important to prioritize usability. Confident teams of well-trained employees empowered with user-friendly programs will always provide excellent customer service. Since technology is ever-changing, the safe bet to always take a human-centered approach to challenges. Because at the end of the day, it is employees and customers who are the anchors of every transaction.
Want to learn more about infusing IoT into your digital transformation? Check out our blog: The Benefits of IoT for Business.
