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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.

SEO – New Mantra for Successful Business

Small business owners stand to benefit most by having an SEO compliant website. Wield SEO to build a strong web presence and bypass your competitions. It will definitely take your business to next level and help you gain new customers consistently. SEO is significant because it makes your website more visible, and that means more traffic and more opportunities to convert prospects into customers.

But still, many small business owners shy away from investing in digital marketing, and specifically from SEO. While making your marketing budget or business plans, do reserve a slot for SEO activity, and how it can be improved. You should start by developing an SEO strategy. Broadly it should contain an outline of what you want to achieve and how to achieve that.

Once sowed, you will reap the benefits of SEO for a long duration. However well your business is doing, it can always do better. And if you’re not currently investing in your SEO, then here’s a hoping that the following points will drive the point home.

Build brand awareness
An SEO compliant website shows up on first page of the SERP (Search Engine Result Pages). As people keep seeing your business name there, it establishes your presence in the market. So next time they have requirement of service or product in your domain, guess who they are going to remember – you!

Cost-effective marketing
While the high rollers in your business vertical may be able to shell-out much more than you on the marketing front. Here again SEO can be your savior. It is very cost-effective form of digital marketing which may place you ahead on some fronts – even against the biggest competitors.

Big players with their fat budgets can spend more on pay-per-click advertising, or hire celebrities for their ads. But with a properly implemented SEO strategy, you can go mano-a-mano with the big firms in the search results in a cost-effective way.
It is now established that SEO has a very high ROI. With the right kind of traffic, the ceiling for returns is endless. And once your website is among the high-rankers, all you need to do is maintain your SEO. You are effectively saving a lot on paid marketing campaigns and ad space.

More targeted traffic
SEO utilizes the concept of pull marketing. This is far better as customers are already looking for the service. Other marketing techniques like videos, pop-up ads or cold calling are considered as disruptions by most of the viewers and have lower ROI. If your SEO is done right, then you should be attracting more relevant traffic to your site.

So it means you are present at the right time and right place. They are more likely to convert.

Faster and more convenient website
Search engines assess how fast, smooth, and user-friendly your website is and they reward positive results by ranking it higher. So, SEO is not just limited to keywords and alt tags. In order to optimize your website for search engines, you, to all intents and purposes need to improve the user experience. The more convenient your small business website is, the greater the chances that people are going to visit and buy what you’re selling.

Long-lasting results

Paid online ads bring results just as long as you keep investigating in them. Investment on SEO will have far fetched results since it will keep bringing you some new customers over a longer period of time.

You cannot expect instant rewards through SEO, but that is not the point of optimization. It aims for your small business to take one of the higher-ranking positions in SERP. Once reached the targeted rank all you have to do is maintain the position there long enough to raise brand awareness. This increases conversion rate and then you have a bigger share in the market.

Find customers in the discovery phase
Businesses go all out to find new customers. It is very challenging to catch attention of potential customers with competion at every level. The loop around this is to find customers in the discovery phase.

When people are searching on Google or other search engines, they are attempting to learn more about what they need, or what the choices do they have. This is the ideal time to present your business in front of them. This is only possible through SEO. Being on the front page of the SERP, significantly increases your chance of having the customer click on your website. That first click is all that matters for successfull business and conversion.

So even if your business is the perfect solution to the search, that is just not enough until you rank higher on Google. You need to handle all the SEO best practices with utmost care to ensure Google considers your business for the relevant search terms you want to rank for.

Conclusion

As you can see, the benefits of SEO for small businesses are muti-fold and have a leading edge over other marketing strategies. When you optimize your website for search engines, you are actually making it more convenient for your future clients and they will know how to reward you.