All have long been reconciled with the idea that we live in the era of information technology and are trying to automate everything. We resigned and forgotten, we live for ourselves and hardly manage to get used to the pace with which IT is progressing.
Being abroad for quite a long time and studying information technologies from the point of view of Germany, I noticed quite a frequent mention in the conversations of the terms “Digital business”, “Digitalization”. In our Russian language, this is something close to informatization of a business. What is behind this term and what sense I will try to explain below.
Digitalization vs Automatization
Informatization of business and in general the process of informatization at first glance is not very different from the automation of business processes as such. Unfortunately, it’s hard in Russia and with both, the idea of ​​automation, as a way to simplify the workflow, by using technology when performing a number of ordered, repetitive operations, makes many shudder. Our wonderful “business” still prefers Excel and does not want to continue to suffer while collecting data on all the back streets of the enterprise. But in general, now is not about that, automation is the process of restoring order, simplification and optimization.
Automation is the transparency of operations, the relevance of data and the awareness of where they came from in general, if we speak roughly.
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Informatization or, beautifully speaking, Digital, as Gartner wrote, is the use of technology to introduce innovations into the company's business model and its entire workflow in order to increase profits and the final value of the product, of course. Whatever becomes clear, an example of a Digital company is, of course, Uber and Airbnb.
Studying this topic, though not long enough, but rather hard, I will try to identify the main differences between the concepts:
- Automation is basically just a way to change operations. Of course, we optimize our processes and try to build a new business model, but we do not change its essence (From the experience in the field of automation, I can single out one miracle of the company, which, when choosing software, decided that the processes would change to the requirements of the program. Motivation is a miracle, good luck with the team and we did according to the mind, not software).
- Automation is possible in parts, it is really to put on stream, for example, the process of taking customer orders, but live with manual control in the field of delivery. It is real, it brings its own benefit, it is how to clean one room at home, of course it’s better when there is order everywhere, but it’s good in one. The digitalization process is more complex. Below we will talk about the components of this process and their inextricable link.
- The reason and in general the meaning of digitalization is interconnected with customers and, above all, is precisely the answer to the next shift in the consumerism paradigm. Automation is the answer to requests from managers in the first place.
- Automation is our yesterday and today, digital is our tomorrow.
Fundamentals Not Yet Found
The theoretical material is not a dogma, but rather is collected and formed on the basis of information about various companies and they will be drunk with digitalization.
There are the following components of digitalization or those areas that it affects:
- (Relations with customer) customer relationship
- (Strategy and goals) Strategies and goals of the organization.
- (Organization structure and Human Resources) Organizational structure and personnel management
- (Culture) Organization Culture
- (Knowledge management) Knowledge Management
- (Processes, Infrastructure, Data) Business processes organization, infrastructure and data management
- (Management and Evaluation metrics) Management and Control
- (Marketing and Distribution process) Marketing
As we said before, the relationship is obvious - changing customer relationships entails the need to reform personnel management and organizational culture, and changing organizational goals and positioning in the market (marketing), changing goals - the need for new ways to control and manage lastly - we change our processes.
New era of buyers and what awaits us
All on IT tries and awesome pantsToday, we, as customers and consumers, are the main headache of all sellers of goods and services. People quickly get used to the good and easily set new bars on the market: if you buy tickets, then from the phone, pay with bank transfer, and even better with the same phone, support should be 24/7, I want to track delivery, look at purchase history, analyze costs receive monthly.
In Europe, all these issues have not been discussed for the first year, and even a number of sociological and statistical studies have already been done:
- 57% of consumers believe that all their requests and questions should be resolved online and only 30% of companies can do this;
- 64% of customers want to get real-time support using their chosen communication channel;
- The ability to solve problems online, by telephone or other means of communication increases customer commitment by more than 36%;
- 78% of all consumers make a purchasing decision based on the level of customer service;
Experts also say that the cost of responding to customer requests with the help of digital technologies is 12% of the cost of the work of Call Centers, and 56% of online forums and FAQs. The cost of customer service usually ranges from $ 6 to $ 8, when the cost of one contact, for example, in social networks costs $ 1.
Today, customer relationship management is one of the hottest topics, but we will discuss the issue in more detail in the following material.
What are the main thoughts we need to remember from the new reality "customer - God":
- Our goal is to satisfy the basic needs of the consumer - reduction of efforts, speed, proactivity on the part of companies, responsibility and attentiveness to consumer experience (data on the process of using goods and consumer experience), quality, human attitude, reliability
- in our reality, it is necessary to create and maintain a client where it is: on Twitter, on YouTube, Facebook;
- the creation of communities and thematic events for the possibility of consumer communication among themselves, communication between consumers is also very important and can bring additional benefits to your company.
- smart life = smart service (user-friendly design, the use of intelligent technologies, additional value for the client).
- it is necessary to control and manage the “journey of the consumer”;
- it is necessary to record and analyze the "experience" of consumers;
- the most prompt and personal communication with the consumer is necessary;
- you need to listen to your customers, collect data on consumer preferences and opinions, set up the necessary metrics to measure them, and be prepared for changes that will be caused by customer preferences;
- improved customer service systems should be reflected in advertisements;
- and with all this, do not forget about the importance of personal communication.
All these "truism" tell us that our goals and strategy of the company should be adjusted.
Course on Digital or recommendations for determining the strategy.
The success of the digitalization process, as well as of any complex process, depends on its strategy and concept. If we are talking about a comprehensive change in business and the entire model of the company, then we just need a strategy, we will try to reduce all the recommendations in one list:
- Start developing a strategy with an end goal and plan for changes from it - a successful digitalization process can fundamentally change internal processes and even contradict current constraints.
- Continuous interaction with the client - at all levels and stages of work, we must maintain contact with our clients and be aware of their current needs.
- Create new opportunities - in the new sphere you need to create your own capabilities and technologies in order to create a center of excellence with qualified personnel and new business processes.
- Act Fast - Competition in the digital market is global, unpredictable and adaptive, the digital company thrives on the ability to create or tap potential and act faster than operators or competitors.
If we talk about more detailed recommendations, they should be addressed to each component separately. Digital assets, channels and opportunities change quickly and easily and can be used in a variety of ways, thereby creating the potential for new values ​​and increasing profits.
In this post, far from all the information is presented; to date, a step-by-step digitalization plan has been almost completed, so depending on the reaction, I will continue to write or not. Thanks for attention.