Here’s a statistic you might find startling (and slightly terrifying): 40% of businesses on the S&P 500 will no longer exist in 10 years if they don’t keep up with technology and transform into digital businesses.
However, the reality is that digital is not a threat. It is an opportunity to reimagine your business models, processes, and work – and the possibilities are endless.
There are five pillars of transformation that are important for any company to become a digital business: outcome-based customer experiences, increased workforce engagement, harnessing assets and the Internet of Things, leveraging business networks and supplier engagement, and becoming digital at the core. The time is now to take control of your data and to reimagine your business models to accelerate growth, increase innovation, and leverage digital to forge a bold vision for your business’s future.
Outcome-based customer experiences
Today’s customers want easy-to-use, fast, reliable, and personalized products and solutions. An increasingly non-linear customer-buying journey, coupled with the rise of Big Data, has led to an outcome-based economy that is rewriting the rules of a good customer experience. This change is forcing business models to shift focus from products to results. To evolve with these changes, businesses must integrate processes across relevant channels to deliver a seamless, unified customized experience in each interaction with their consumers.
It’s no small task. businesses digital at the core will understand where their customers are now and make data-driven decisions to anticipate where they’ll be in the future to remain relevant and stay ahead of the competition.
In addition to keeping your customers satisfied, it’s imperative to keep employees engaged at work. Although employee satisfaction has steadily increased year-over-year, only about 30% of employees report being engaged on the job. While our world is getting smarter through technological innovation, increasing organizational complexity and multi-layered management make it difficult for employees and businesses to be both productive and efficient.
To cut down on complexity and increase workforce morale, it’s time to face a few digital era truths that are forcing businesses to evolve. Leading businesses need to attract the best workforce and manage total workforce lifecycles from recruiting and onboarding to performance, compensation, and learning. By 2020, millennials will make up half the workforce, requiring consumer-grade technology to work smarter and faster and be more agile. And to drive that agility, while still lowering fixed costs, businesses need to manage contractors and service providers seamlessly and comply with ever-increasing regulations.
Harness assets and the Internet of Things
It’s cliché, but we really are all connected – hyperconnected – and this will transform nearly every business model. The companies that understand this and use it to their advantage come out ahead, because the potential of the relationship between physical and digital assets and the Internet of things is huge, with an estimated economic impact of $4–11 trillion by 2025. And with three billion people and 30 to 50 billion devices expected to be connected to the Internet by 2020, there are ever-expanding ways for your business to connect with your customers, suppliers, employees – and even machines.
Digital business models are disruptive. The rules have changed.
Under Armour doesn’t just sell sweat-wicking workout gear. It connects 38 million people on a digital health platform.
The NFL isn’t solely focused on real-life football teams. It uses data to provide fantasy football fans with the Fantasy Player Comparison Tool, so they can instantly track and analyze more than 100 stats per player.
Siemens isn’t just an industrial powerhouse. It’s a software company that connects its industrial assets in the cloud so its customers can generate revenue by selling services, not products.
Start thinking like a tech company to connect with your customers in new ways.
Business networks and supplier engagement
Going digital not only requires a different approach to business, but a different approach to relationships – between different parts of your organization and between your business and your network of suppliers, customers and partners. While one network is valuable, access to additional networks through that network is revolutionary. Business networks extend processes externally to leverage services from partners for travel and entertainment, direct and indirect materials, and labor and services effortlessly and at scale.
The digital core
Although it might seem complicated to create a digital strategy, the fifth pillar, the digital core, can reduce the effort by linking all aspects of your business to a single, easy-to-use platform. With a digital core, you can step away from “batch mode.” You’ll gain access to real-time simulation and predictive capabilities, provide a consumer-grade experience, and increase your agility, while reducing total cost of ownership (TCO) – all through one entity. Whether you want to connect directly with customers and suppliers, empower your employees, or quickly analyze large volumes of complex data, your digital core will simplify these processes and make way for innovation.
SAP S/4HANA is the end-to-end solution that allows businesses to cover all processes in every industry and line of business, while running in-memory. To learn more about what’s possible with digital transformation and how SAP can help your business Run Simple, discover the Art of the Possible and watch the video below.
Located in North America and want to take your business to the next level? Attend SAP’s Art of the Possible Roadshow.embedded by Embedded Video
Want more insight on the digital transformation? See Transform Or Die: What Will You Do In The Digital Economy?