5 key areas of digital transformation

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When embarking on a digital transformation project for your business, you need to adopt an action plan. But where to start? In what categories should the necessity of change be considered? The first step is undoubtedly the will to change and the awareness of their essence and the goal that we are to achieve. Here are five key areas for digital transformation to help you plan for change.

When we talk about the idea of ‚Äč‚Äčindustry 4.0, we do not think deeply about its definition. It can even be said that everyone, depending on their specialization and experience, sees various aspects of the changes resulting from digitization. For an engineer, these will probably be changes in production technology, for an IT specialist, data and their analysis are of key importance, while the head of HR will consider new qualifications and skills of 4.0 employees. The managing manager will pay attention to the changing market and competition, ways of delivering products to the customer or their innovation. This approach should be supported by the marketing director responsible for strategy, product and communication with the market.

All of these subjective views are important, but initiating actions independently in each of these areas may not be fully successful. This is because the issue should be viewed holistically and treated as a mechanism whose elements complement each other to create a comprehensive transformation plan.

Five areas of change

The key areas to consider when considering an enterprise transformation plan are: customers, competition, data, innovation and value creation. Understanding the current state and outlining your own advantage in these areas is the basis of success.

Let’s not forget about the customer

There is a reason why customers are listed first on this list. It is with them that the initiative of change begins. Yes, yes … It should be remembered that the original assumption of investing in a digital factory was to meet the expectations of the market. Individualized approach to the customer and personalization of products is a trend that drives changes. Thus, the goal of digitization is to make production focused on smaller batches more flexible and to keep the costs of personalized production at the level of those incurred in mass production. So it can be assumed that customers are the incentive to change.

In the digital world, it is important to remember that customers create impact networks and have the ability to dynamically react and communicate with the brand. The customer is considered not only as a stakeholder to whom we offer value, but also as a partner. New technologies allow him to co-create the product already at the R&D stage – right up to giving opinions and influencing recommendations in the use phase. Therefore, it can improve the product, but also actively influence the reputation of the brand and build it. Digitization also changes the purchasing path, which reorganizes the marketing activity along the purchasing funnel. In this respect, new tools and software used in the company (eg Business Intelligence, CRM, ERP) facilitate the implementation of marketing goals and communication with the client. By perceiving customers only as a target group, without the possibility of influencing the brand and communicating with it, we do not fit in with the changes in the digital world.

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