Over time, digitalization has transformed to become an appendage to business. However, it has recently evolved to become not just part of the economy, but a fundamental component of it. In fact, digitalization creates an economy of limitless opportunities where some technologies replace and disrupt others. Firms that are unable to adapt to the digital economy have become obsolete. Conversely, enterprises that have transitioned to digital world are far more profitable than their counterparts.
Here are four ways growing companies are reinventing themselves to keep up with trends in the digital world.
It has become necessary for brands to embrace innovation to gain a competitive edge in the ever-evolving global business environment. Collaboration within the team and beyond the company’s boundaries is indispensable for change. Brands must involve customers, research communities, and partners in decision making.
For example, insurance companies are harnessing digital networks to stay ahead of the curve. Insurers rely on data to create innovative insurance quotes and manage risks. The digital world has made insurers masterful in tweaking their insurance policies.
Collaboration is essential, especially for companies that are harnessing the power of the Internet of Things. Today’s tech startups are competing with digital innovations by developing solutions that can enable industries such as home automation and healthcare leverage synergies. Innovators are making significant strides towards creating reusable solutions that local teams can use to design their products and services and gain a competitive advantage.
Enhanced customer service
Nothing challenges brands more than meeting the needs of today’s digitally empowered customers. However, brands that are adapting to the digital world can offer superior customer service at an affordable cost. Satisfying customers’ service expectations is increasingly challenging as they become more savvy and fickle. In fact, customer service has gone beyond ease of use to include proactive user experiences. Automotive companies, for example, are developing solutions that can record critical performance data of an automobile, making it easier to send fault codes to the control center for quick analysis and feedback.
That is the kind of experience digitally empowered customers expect down the road. Digital companies will continue to harness the power of Big Data to provide an outstanding customer experience. Big Data will be used to address limitations of analytics, security threats, and worries about data privacy.
Companies must revisit their leadership models and culture to thrive in today’s business environment. Leadership structures that prevailed in the 20th century will no longer work in today’s digital economy. Companies need to make a culture shift and base decisions on analytics rather than the opinions of top leaders. Digital brands are adding data scientists to their leadership to improve decision making. It’s easier for a company to make decisions when it relies on algorithms. In fact, many companies have shifted to advanced technologies such as artificial intelligence and robotics to make their decision-making seamless. Similarly, thriving companies are focusing more heavily on strategic planning to address issues such as cybersecurity.
Enhancement of products
Thriving companies are striving to extend and restructure their boundaries. Some are integrating their related products to create more complex solutions. For example, mobility service companies are expanding their services beyond escalator and elevator technologies to serve industries such retail outlets, healthcare, expos, and sports arenas. Development of smart escalators and elevators has made it easier to analyze data and send maintenance alert before problems happen.
Digital technologies are transforming the way people live and run their businesses. Digitalization is integral to the innovation-driven business environment. However, some technologies are disruptive to societies and economies. Companies and managerial skills advance as technologies continue to evolve. The grand challenge for future businesses is the need to invent effective ways to thrive in the digital economy.
For more insight on digital transformation strategies, see Purpose Matters When Building Your Long-Game Digital Strategy.