Companies that still have non-digital processes are fast retreating and shrinking. If your business motto is to remain and expand, then you need to go digital. There are glitzy editorial pieces extolling the virtues of digital, but one thing is in short supply; concrete thoughts on digital value.
So how do you figure your business potential in the digital world?
To ask is to be wise.
Here are three questions that unlocks the digital value of your business.
Q1. Where can I find and exploit digital value?
Advances in technology have transformed the business landscape. Traditionally, companies in this sector worked to create economic value by selling tangible products or services. After the rise of the digital age, new types of businesses emerged. Examples of these are Airbnb, Uber and Netflix. These ones deal in digital products. As such, there is an ever increasing shift from economic value to digital value.
Digital value is the development and sale of digital products and services. It can be found in the market performance of digital products and services. You can also find it in the changes that occur to a business once it rolls out products of this nature. Digital value can be exploited to gain revenue via the power of web and in other digital (read social) networks where customers abound.
Digital value gave rise to digital economics that analyze the development, control and consumption of the value which is associated with digital services, products and assets in a business. Moreover, it establishes a framework which businesses can utilize to comprehend and calculate how much of their total business value is digital in nature. The emergence of digital value has forced businesses across the board to recreate their operational and business models.
Q2. What changes should I implement to support and grow new digital business models?
Digital business models are the designs which are used to operate businesses that deal in digital products and services. Examples of these are Freemium, Subscription and Access-over-Ownership digital business models. Disruptive changes should be made in a company so as to implement and sustain the new digital business models. And the ultimate aim of these business models is to deliver instant gratification that translates to undying loyalty.
First, the integration of digital tools like CRM needs to be undertaken to ensure that work processes can handle digital products. Some basic examples include sales, marketing, service etc. In addition to that, the business needs to create a digital infrastructure to disseminate and manage the data associated with digital products. This infrastructure can be made up of a hybrid of software and hardware resources. These changes are necessary so as to implement and sustain digital business models.
Q3. What are the best practices and lessons that can be learned from early digital adopters?
Some businesses are quicker to adopt digital business models than others. They become the guiding light for others to follow in their digital journey. Some of their lessons are...
First, adopting digital business models involves a lot more than just changing your technology. It requires that you change how the individuals in your organization engage with each other.
Second, digital business models are transformational in nature. The traditional efforts of marketing, pricing and product differentiation are simply not enough for digital products. You also need to create, elevate, deliver and reinforce business promises.
Third, data is the backbone of digital business models. Every touch and click that is made by consumers to view or purchase digital products or services is a source of data. This data goes on to become information processed in your CRM solution. By using this intelligence, the stakeholders are able to create patterns which assist them to come up with insights about their enterprise and how to run it better.
Your responses the above questions may change,but the basic premise remains the same. Use them to create pragmatic, long term digital strategies that lifts off your business to new horizons.