Digital Transformation has been happening for a while, what is different now compared to earlier years of digital transformation, is the factors which determine the Transformation. Who is changing the game ? the speed and the volume of information available etc. The change is fast because it is just not only the companies who changes the customer engagement but also each consumer armed with the power of a mainframe equivalent of yester years and has the ability to dictate the rules of digital engagement through disruptive technologies. B2B customers do their research on-line and do their purchases with their models and not wait for the salesperson to stop by to look at the colorful materials. One can buy directly from overseas and execute the contract without leaving their desk. So it is important for companies to change their methods of interactions with customers using digital transformation.
Major Factors driving Digital Transformation :
- Disruptive technologies / Companies
- Customer behavior changes, options available to customers
- Proliferation of smart devices
To adapt to this changing world order companies has to invest in technology and be responsive to the customer. Brick & Mortar and On-line are not mutually exclusive. For a customer it is the same company. Engaging the customer through multiple channels and providing superior experience will be a big differentiator. Big Data powers this behavioral pattern recognition and help deliver the superior customer experience. The expected income growth based on the Big Data technology is on par with Digital Transformation for product/operational innovation (see picture). The biggest expected return is the digital engagement of the customers.
Creating the data driven environment to support the advanced/predictive analytics and leveraging information through Data Science to engage Customers and innovate new products means investment in Digital Transformation in each of those areas.