Digital transformation

The Right Way to Bring about Digital Transformation

Digital transformation has changed the underlying economics of markets and also how we all go about our day. Businessmen are acknowledging this and are adapting accordingly quickly. It is again a revision of the concept of demand and supply. A huge chunk of buying and selling, customer service, and education is being done online. Although the fear of digital disruption is an impending danger, most executives are adapting to changing trends to avoid missing out on new technologies. 

Every bout of technology change comes with pros and cons. On the one hand, new technologies threaten already established businesses, they also bring a plethora of new unprecedented opportunities. Real winners are those who modify themselves to adapt to the new ways. Some executives cite the risk of disruption as the impetus for transformation; that risk is certainly real. But the matter of fact is that more businessmen are varied about missing out on opportunities to make big, rather than being forced into oblivion. It is not a digital disruption that impels companies to change, it is digital “FOMO” (Fear Of Missing Out).

Having said that, still, most corporations do not comprehend the vastness of digital transformation. First of all, digital transformation is not a standalone vertical. Broadly classified, there are four types of digital transformation:

  • Business Process
  • Business Model
  • Domain
  • Cultural/Organizational

It is very common among corporations to be focused solely on the process or organizational transformation. Owing to this approach they are not able to scoop up the benefits of digitalization entirely. Again, it has to be a team effort for the complete digital transformation of the business. Everyone should be on board with its execution mainly being chaperoned by the CEO, with the Chief Information Officer (CIO) or Chief Digital Officer (CDO) and Strategy and Business Unit Executive leading the way. It is vastly erroneous of many corporations to believe that digital transformation must begin with cultural/organizational transformation. But it has proved to have a greater success rate if corporations first pursue business transformation initiatives. This can then be followed by teaching the organization to be more innovative, agile, and digital.

Continue to read up to know all about the four types of transformations in more detail and get the most out of it: 

Process Transformation: Corporates are focusing significantly on business processes for revamping using data analytics, APIs, machine learning, and other technologies. Digitalization provides valuable new ways for lowering production and maintenance costs, reducing cycle times, better-integrating core systems, or increasing quality. British Airways relied on process transformation to drive more customers by shifting their booking process to a digital base. They were able to beat even the competitors offering lower airfare by providing ease-of-use. Everyone is aware of the hugely successful process transformation in customer experience by Domino’s Pizza. They completely re-imagined the food ordering process; allowing customers to order from any device, live tracking, and even voice command. This innovation increased customer convenience so much that it pushed them way ahead of the competition. Although they are led to success by a CIO or CDO as these transformations tend to be focused efforts around specific areas of the business, required adjustments are to be made in every department for a seamless transition.   

Business Model Transformation: Traditional business models are making way to new unprecedented business methods through digital transformation. Business model transformations are aimed at the fundamental building blocks of finding a new purpose in the industry. We are well aware of groundbreaking business ideas like Netflix’s reinvention of video distribution, Apple’s reinvention of music delivery (I-Tunes), to Uber’s reinvention of the taxi industry. This kind of transformation is occurring all around. China’s AIA Group has moved beyond insurance to become a wellness company, whereas Dutch electronics giant Philips has largely divested its legacy lighting business to focus on healthcare technology. They have been hugely successful. 

Strategy and/or Business Units play an important role in business model transformation. Such opportunities are quite complex and require out of the box strategies. By changing the fundamental building blocks of value, corporations that achieve business model transformation open significant new opportunities for growth. More and more companies are investing to pursue this path.

Domain Transformation: Stating in simple terms, domain transformation is inventing a new field of business that has never existed before. It may seem like an impossible task as generally, one can find retailers in every imaginable domain. But new technologies are redefining products and services, blurring industry boundaries, and creating entirely new sets of non-traditional competitors. These new technologies have unlocked wholly new businesses for their companies beyond currently served markets.

The best example of domain transformation is demonstrated by the online retailer, Amazon. Amazon used its existing resources to launch Amazon Web Services (AWS), now the largest cloud computing/infrastructure service. What Amazon really did was tap into its strong digital capabilities like built-in storage, computing databases to support its core retail business coupled with its robust base of thousands of relationships with young, growing companies that progressively demanded computing services to grow. Once again, AWS is not just a business extension for Amazon, but a completely distinct business in a fundamentally new market space. It has met with so much success that AWS alone now contributes to nearly 60% of Amazon’s annual profit.  

An executive of a non-tech business may view this story skeptically as these tech giants have more ability to acquire and leverage technology than other companies. But truth be told, it is as easy for any other company too to access and acquire the new technologies demanded to unhinge new growth; that too quite cheaply and efficiently. Technology gaps are no longer a barrier. All you need is a vision. We see marvelous innovations taking place in the growing startup ecosystem. Companies that understand the need of the hour and can smartly leverage this innovation efficiently, showing faith in new sources, are making the most of new bounds.

Entering domain transformation involves re-defining business boundaries. The strategy department and CEO mainly are the brains behind pursuing these opportunities.

Cultural/Organizational Transformation: To have a complete and long-term digital transformation, it is essential to redefine organizational mindsets, processes, and sourcing new talent & upgrading capabilities for the digital world. All the top-drawer corporations have recognized the important parameters to bring out this change; they include agile workflows, a bias toward testing and learning, decentralized decision-making, and a greater reliance on business ecosystems. Home Depot invested a significant amount to digitally update its infrastructure and this decision led to significant revenue increases. Similarly, a century-old postage equipment company, Pitney Bowes, embraced the technological transition. Led by its CIO, the company promoted a “culture of innovation,” and shifted company values to focus on customer-centricity.  

All these companies focused initially on building digital mindsets and agility into the organization, backed by concrete initiatives to drive innovation and growth. Both Home Depot and Pitney Bowes began their transformation with a primary focus on enhancing customer-facing offerings and matching pace with the fast-changing technologies. It in exchange guided the teams to adopt digital workflow practices but in doing so demonstrated the power of digital to change old organizational norms. Pitney Bowes CEO Mark Lautenbach shared with Fortune that, “As you’re thinking about transforming a company… try to realize those cores, those gems that you have that you can pivot off of to create that next chapter”. Progress on business initiatives dragged organizational change like agile development and innovation along. Cultural/organizational change plays a huge hand in the long-term requirement of success, but it is merely a product of, rather than a prerequisite for, business transformation initiatives. 

To reiterate, advancements in technology will continue to force industries to change. Corporations that understand and pursue digital transformation in a multi-dimensional way will find greater success than those that don’t.  

We are here to help you embrace digital transformation for your business.

How Investing in Gym Management Software can Increase your Revenue

Are you trying to hunt out effective ideas for growing your business because 2020 has been a year that has forced numerous fitness clubs to shift to a defensive business strategy or a proactive one that saw them divest into areas which they never previously considered to maintain income during the COVID-19 pandemic?

Implementing unique and creative fitness marketing ideas will facilitate your growth in gym revenue, boost profitability, and attract more members to the gym or fitness club. From reducing expenses like downsizing on staff and cutting down on advertising, to taking their fitness classes online and selling “online memberships” to accommodate restrictions imposed by governments, the incredible strain of the virus has forced gym businesses around the world to create difficult decisions to even sustain rather than aiming for profitability.

While big fundamental shifts like those outlined above could even be necessary to urge your club to manage within the green, there are still a variety of smaller tweaks you could make to the configuration of your gym management software which is in a position to even have a positive influence on your club’s bottom line. The aim of this text is to stipulate a spread of these to fabricate your business with some additional tools to carry on your club’s functioning with low costs.

Using gym management software you minimize workload additionally as you increase clients.

Our step by step fitness marketing ideas will help get more members in your gym. Gym and fitness management software has proven to enhance revenue by 33% and even increase customer retention by 25%. It saves almost two hours each day within the admin time. Handling a bunch of processes might be tough for you at the same time, and more time-consuming. Using the software you’ll be able to save time and also like money and increase the customer satisfaction level. Build your brand, attract new customers & keep existing ones loyal.

Here are a few features of Gym Management Software that can lead your business towards success.

24X7 Gym Access Control

Integrating the 24X7 Gym access control ups the user experience and aids in gym member retention. Boost your gym’s revenue without adding more staff and overhead costs. It’s a secure and automatic solution that blends the tracking system and thus the door access hardware.

Manage your gym even once you are not available within the gym and save time and energy with this gym management software cost-effectively. Be a tough competitor and provide a more satisfying user experience.

Integrated Billing

Mostly gym management software follows the concept of integrated billing. With which, the management becomes very seamless, and it doesn’t allow you to stress about any administrative stuff.

This system can automatically manage inventory variations. Moreover, it’s often combined with several accounting systems to abolish the double-entry of knowledge.

The cloud-driven approach can easily support the bills and services on a recurring basis with additional operations. Even it offers discounts, refunds, one-off transactions, renewals, and free trials. This billing system can handle the income more effectively as contrasted to non-automated counterparts. Also, the full process reduces the number of errors, gathering costs and quotes, and then forming invoices.

Reporting

Study the performance of your fitness center with hassle-free analytic service and reporting that the gym management system offers. You’ll be able to check every single detail of the payments done by the purchasers (payment date, membership, and thus the payment gateway). It assists in tracking the commissionable sales of your staff.

In the reporting area of payments, expenses, payment dues, customer attendance, and memberships, etc. you’ll be able to send notifications to the members if they need pending payments and details about their recurring payments.

Point of Sale (POS)

Sell your gym products in bulk with gym management’s POS system. Maintain the import and export of information and enable or disable the features per your customer’s requirements.

Track your inventory, staff members, and sales with the customizable gym management software. The POS allows you to integrate the payment processing to sign a relief from the burden of handling the manager and accounts.

Focus on retention

Lastly, to some extent that has been revisited numerous times in our previous posts, but a retention focus should be at the forefront of your mind when running your club – especially after you are looking to cut back your costs. In general, it’s considered that acquiring a greenhorn customer costs 8 times over what it does to retain an existing one.