You would like to explore the possibilities of digitization for your company, and cannot find the time to deal with the topic more intensively? Or you do not exactly know how to tackle the topic? In this blog, you can find a summary of how you can reframe your business model considering digitalization. The digital transformation of society is in full swing. It is not too late to jump on the digitization bandwagon!
To be able to derive an innovative, sustainable business model out of your current strengths, it is necessary, first to realize the need for such a transformation, and secondly, to allocate resources for it. Digitalization, even if some people perceive it this way, cannot be solely solved by IT projects. The impact of true digitization in any company goes far beyond the use of top-notch software or digital tools. Digitalization implies profound changes in your companies’ structure, processes, and principally a change in corporate culture.
A strong customer-centricity is and remains the key to success. However, in a digital world, customer wishes are also constantly changing at a much faster pace than before. That means that the first impulse for the transformation of your business model has already been set.
Knowing your customer’s exact needs is the most important piece of the puzzle on your company’s future landscape. The Accenture study “2020 Global Buyer Values” revealed that most chemical companies do not know their customers and their wishes as precisely as they themselves assume. Possible this is also a challenge for your company. In addition, yesterday’s presumptions do not necessarily match today’s reality. Companies that do not realize that they must deal with this new situation and do not act, will inevitably lose the connection with their customers.
Regardless of the industry, a wise piece of advice that can be given to any company is: find out exactly what your customers expect in terms of product, service, and payment procedures are! The digitalization of your business model will open-up opportunities to serve new customer segments. It is useful to also include potential customers in the survey. Already at this stage, several questions will arise for your company:
- Which channels are we going to use in the future (keyword: omnichannel marketing) to reach our customers in the best way possible?
- Which communication channels are preferred by which customers?
- How do we have to adapt our sales management to adapt to the new customer requirements?
These questions could be included in your survey so that you can consider from the very beginning opinions of potential customers.
Before you find solutions, you should have a look at the big picture. This implies to rethink or review the strategic orientation and the vision of your company under the aspect of customer requirements and digital opportunities. This is how you create a stable base on which you can develop a sound digital business model. However, any changes that you implement in sales, as the central interface to the customer, will have an impact on the entire structure of your company. You should be aware of it and proactively capture and evaluate those consequences.
Based on the insights gained so far, it is recommendable to draft an overall master plan for the digital transformation and to set appropriate milestones. Responses to the many questions that will arise during the process should be reviewed repeatedly and integrated into the master plan. Engage all your staff in the journey to the digital era and ensure transparent communication at each stage. At this point, it is essential to highlight the purpose of the new organization to all stakeholders. The purpose, if made tangible, gives to all participants a reason to engage in this journey with enthusiasm and a positive attitude. Find your “why”, your purpose, and things will go smooth.
The one that has a “why” to live for, can bear almost any “how”.
Friedrich Nietzsche
Flexibility is one of the fundamental success factors for a successful transformation. The mindset and views of every individual in the organization will change. New structures will emerge and thus, another fundamental pillar will be laid for a unique way of interacting with each other and with customers. A shift of your corporate culture towards more flexibility and agility is necessary, to be able to react faster to changes in the market in the years to come. To ensure that all this will be successful, solid planning and a step-by-step implementation are necessary.
Briefly, the five milestones to implement your digital business model are:
1. recognize the need for change
2. know or determine exactly what your customers expect
3. review strategy and vision
4. adapt structures and initiate cultural change
5. measure and review results
Once the process is completed, make your new business model visible! When communicating the new business model, it is advisable to build a bridge to your company’s past and present a convincing, trustworthy narrative. Your authentic story will speak for itself and will engage all stakeholders, internally and externally.