How often have you heard this and similar sentences from colleagues, managers and also boards especially during the last months under C-19?
We live in a time now where we feel a certain desperation to loose closeness to our customers and thus the need to emphasize the value of our products and services – in the one or the other form; “no matter how”.
When I talk to companies who have the wish to make use of the increasing digital possibilities – in particular in certain industries and B2B markets, where we consider complexity high – the best advice I can give at the very start is:
“Digital growth depends more on the business model than on technology.”
Hence elementary business model parameters like
(a) customer value proposition (to help customers to get a job done)
(b) and the company formula to be profitable (how to create value for yourself while providing value to your customers)
are crucial parameters, that still need to be very clearly defined.
When you look into digital tools then
- talk about and discuss WHY to use these technologies (e.g. to create ease for customers or to ease your own processes = digital transformation)
- and less about the HOW (probably not the company’s core competence) – be prepared to source the HOW out; and that does not need to be expensive at all.
Actually, here small and medium-sized enterprises can have a competitive advantage as it is easier to “move” a small speed boat then a big tanker.
Just as deadly it can be to oversleep digitalization, it is at least as dangerous to use digitalization as an end in itself.
Because:
- Digitalization is not a fashion trend
- Digitalization is a process
- Digitalization includes the entire value chain
- Digitalization requires controlling
As a conclusion: Digitization needs a clear target (the WHY), know-how and infrastructure (the HOW).