Digitization

10 suggestions for successful digital transformation: #10 Digitalize your business model

Ralf Krahnert08/22/2018

Digitalize your business model - you've probably heard this tip many times before. Product-oriented services in particular are likely to vastly change in the course of digitalization. When existing offers are digitalized, new ideas and innovations appear. Think ahead and don’t lose sight of your digital vision as you go about transforming your business. Start with manageable digitalization projects that promise a high economic value.

Keep an eye on the supply chain

Integrate suppliers, partners and employees into your projects. In other words, don't forget to optimize business processes along the entire value chain. Digitalization should be seen as a long-term, overarching process that fundamentally changes your entire company. It must therefore be implemented progressively and over a long period of time. You can't meticulously plan every step of the way and be prepared in advance for all eventualities. You have to be flexible.

Customize your sales model

Digitalization is changing distribution structures, irrespective of the industry. Many companies are discovering direct sales themselves or working more efficiently with wholesalers, for example in direct deliveries to end customers. The requirements in the business-to-business (B2B) environment will therefore start to converge with those in the business-to-consumer (B2C) sector to a large extent.

Be faster than the competition

Keep an eye on the competition, but tread your own path.If all you do is respond to market shifts, it could quickly be too late.In other words, do not focus on the competition, but on your customers’ needs. Only customer-oriented companies are able to enter new markets and gain competitive advantage.

Surprise your customers

Your customers should be able to decide for themselves how they communicate with your company and which medium they use to order. You should keep your customer contact flexible. Don't forget to combine traditional channels with the new digital channels. With "Click & Collect", for example, customers can order conveniently via the Internet and pick up the goods later in the shop - no shopping stress, no queuing. Live chat and video-assisted consulting help to ensure that even with digital business processes personal contact is not lost.

The top priority is and always will be the added value for the customer. After all, service is the key to lasting customer loyalty.

Improve your digital know-how

As with all major organizational changes, a digital transition can also lead to resistance. If new digital distribution channels are opened up, for example, the sales force might be skeptical for fear of losing out on existing commissions. So make it clear that digital distribution channels are a useful addition to tap into new groups of customers and achieve a stronger market presence. Support your sales force and adjust your commission model if necessary.

How digital are you?

Our digitization check tells you where your company stands in comparison to the direct competition. You will find out in which areas you are already well positioned and where there is an acute backlog.

Check your digital maturity level

 

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