Digital Disruption from EX²

When the Internet was in its infancy, only the most innovative companies rushed to embrace it. Today, it would be very difficult to find a successful business that does not have at least a rudimentary website or email accounts for employees. As technology advanced, businesses were forced to adapt, and they must continue to adapt if they are to thrive. 

The most pressing need today is to take steps toward becoming a digital enterprise. A digital enterprise is one in which the business model is effectively combined with technology to satisfy the demands of customers who are embracing the digital world in ever-increasing numbers. The key is to make the transformation successfully. Businesses that have been the most successful at becoming a digital enterprise typically have five traits in common.

The digital age has brought many changes to the traditional business model, and no department has been more affected than marketing. Once, marketers devoted most of their time and budget to front-end activities, such as generating leads and increasing brand awareness. Leads were handed over to the sales department, and the customer service department took care of any interactions after the sale. In other words, the marketer's responsibilities were largely limited to giving salespeople a chance to generate revenue.

The traditional model is no longer the most effective. Technology has changed how companies conduct their business, and one major change has involved leveraging technology in marketing efforts. As a result, marketers have been able to grow beyond traditional responsibilities. Today, the most successful marketers have been able to assume ownership of the entire customer lifecycle, not just the front end. 

Digital technology is challenging the traditional "business as usual" model. New technologies make it easier for employees to "work smarter, not harder," while enhancing the company's relationship with its customers. However, digital initiatives can fail without an effective strategy. One key element in this strategy should be content management.

Many large organizations rely on an enterprise CMS, such as Sitecore, to manage massive amounts of content across all channels. Even small businesses, however, can benefit from the following steps.

It has been said that not all businesses are digital businesses, but all businesses must soon become digital or risk falling behind the competition. The rush to digital transformation is on, and there is little chance that a trend reversal will occur. 

Technology has always had the power to drive how businesses interact with customers, how they market their products, and how they streamline internal processes. Most advances have built on previous developments, such as the use of factory robotics to enhance existing assembly line methods or local-area networks linking stand-alone PCs to cut costs and improve productivity. Digital initiatives are another way of applying new technology to help achieve a greater revenue production and an increase in profitability.

However, unlike most previous efforts, the transformation to a digital enterprise presents unusual budgeting challenges. The majority of past projects had clearly defined deadlines and objectives. There was a starting point, steps along the way, and a fixed destination. With a digital enterprise, the goal is not a specific destination; the goal is an extended journey. Therein lies the problem.

It is difficult enough to create an accurate budget for a project in which all factors are known. A digital transformation adds a number of unknowns to the budgeting equation.

If there is one guiding principle for businesses, it is: Give the customers what they want. (How many ice cream shops could stay in business if the only flavor offered was plain vanilla?) What customers want today is a multi-channel experience. They have grown increasingly tech-savvy and more comfortable with using everything from desktops to kiosks in order to research products they are considering, to communicate with companies, and to make purchases. Companies that give them want they want will thrive, and those that do not will falter.

Creating a great Omni-channel customer experience, however, is far more than merely enabling access through a variety of devices. It is a cohesive plan to guide each customer throughout his or her purchase journey. Although not every enterprise needs to create an identical multi-channel experience, there are certain important characteristics that all successful Omni-channel models share.

The term "big data" implies far more than just a lot of data. It is also more than just data sets that are too large for conventional tools to manage, analyze and capture. Big data gives you access to data that is arriving via new streams, such as data collected from social channels, devices connected to the "Internet of Things," online browsing histories, interactive kiosks and GPS locators.

The move to a digital transformation begins the first time that a company decides that it needs a website or an email address. Thus, virtually all businesses have had a digital presence for many years. However, today there are social media networks, cloud providers of SaaS, and mobile technology. Becoming a true digital business requires embracing all of these and more.

Unfortunately, some business leaders rush to leverage the latest technology without first establishing a clear digital strategy. What can result is a confusing labyrinth of apps that can do more harm than good. If you want to avoid the pitfalls of a digital transformation, the following advice might help.