Being customer-centric in a digital world requires not a plan but a process.Digital technology has transformed business by rapidly eroding any and all barriers – physical, institutional or temporal – between customers and the satisfaction of their needs and desires. By now, nearly all organisations are aware that they must either transform or risk being replaced by disruptive competitors. But the prospect of making sweeping changes paralyses many firms.
Specifically, two questions keep popping up in our sessions with executives:
What are the guiding principles for successful digital transformation?
Where should we begin?
Regarding the first question: True digital transformation consists of an organisation leveraging technology across platforms and functions to radically and qualitatively improve the customer experience at the most important touchpoints.
Organisations have to create value for customers before they can create value for themselves. To make this work, organisations need to have the right enablers in place (e.g. culture and leadership, IT-infrastructure, processes).
And that is where the second question – where to start – comes in. The first step is an objective assessment of “digital readiness”, or where you currently stand as a digital organisation. Some companies are digital-savvy already; others are relative beginners. It makes no sense to adopt an advanced digital solution (e.g., Big Data, artificial intelligence, etc.) without the infrastructure and top-level competencies to support it. When it comes to digital, the only thing worse than standing still is running in the wrong direction.A brisk, purposeful walking pace is more effective than a desperate sprint. Just ask Silicon Valley. Software engineers innovate in stages, not in giant leaps. Instead of tackling several ambitious missions at once, they take a series of small steps, learn and then advance again. Their iterative processes – punctuated by periods of assiduous feedback-gathering – are responsible for products and platforms that have reshaped our world with surprising speed.
Read all: Setting the Stage for Digital Transformation | INSEAD Knowledge