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Customer New
Demand Reach & Customer Process Asset
Purchase Agility Business
Generation Selection Experience Efficiency Utilization
Process Models
Overview
This may be true when digital applies exclusively to marketing and sales
channels. A digital business strategy finds new connections between customer
3 The more digital we become, the less
value and company revenue that create pricing power and avoid
our customers are willing to pay for
commoditization. Digital customer experiences, digital supply chain
our products and services.
performance, and digital innovation will create a premium that combats the
tendency for commoditization.
4 My customer demographic is more Baby boomers and older consumers are among the most avid digital users.
established. Its only Generation X They regularly use financial and health services online and on their phones,
and millennials who care about having and they shop extensively online, including comparison shopping. Digital
digital experiences. opportunities exist across customer demographics.
Many emerging markets are digitally sophisticated; some are creating mobile
5 banking and advertising business models and platforms that are now being
Digital is relevant only in developed
implemented in advanced economies. IDC predicts that by 2020, 62% of the
markets.
digital universe (a measure of all the digital data created, replicated, and
consumed in a single year) will be attributable to emerging markets.
Telcos partner with Chemicals companies Retail banks offer Office supply Pharma companies
retailers (for a fee) to provide online portal for additional services, like companies sell its use analytics to
push offer to shoppers partners to manage mobile payment or products through their customize products
who opt-in orders for a fee advanced wealth e-commerce platforms Public health services
Media companies Energy companies management for Big box retailers reduce process costs
digitize their apply analytical normal customers (e.g. optimize inventories by digitization of
operational value methods to improve Chase Private Client) due to analytical driven administration
chain, resulting in time asset maintenance, Retail banks optimize demand forecast and processes and
improvement and resulting in reduced their processes and supplier integration in customer self service
reduced costs (e.g. number of unplanned leverage customers value chain (e.g. options
Warner Bros. Studio) downtimes self-service Walmart) Life sciences
Telcos extend their Chemicals companies opportunities (E.g. Individually customized companies extend
business model by extend their portfolios BBVA AI-supported self products, instead of business into lifestyle
integration mobile with solutions service) mass production (e.g. nutrition supplies,
payment solutions (e.g. combining traditional Crowdfunding-based sneaker customization based on individual
African mobile payment products with value- loan options, allowing via web portal) analytical results
trend) added services (e.g. retail banks to reduce
BASF) their risk exposure (e.g.
Kickstarter)
DIGITAL TRANSFORMATION
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Customer New
Demand Reach & Customer Process Asset
Purchase Agility Business
Generation Selection Experience Efficiency Utilization
Process Models
Overview
Brand Being where Improved Clear, Digitized and Optimized Utilize remote Analytics-
awareness customers understanding seamless, automated production/inv access and based
and brand can easily find of customer and secure processes entory collaboration commercializa-
interest us expectations ways to Improved planning and mobility tion
through social Location via ongoing purchase based on tools for (marketing,
process
media engagement Mobile demand employees commissions,
based governance
marketing with customer forecasting Integration trade
services payments and efficiency
promotions) to
Big data Access to Social Big data through real- Data-based with partners
preventive in digital target
analytics to customers listening analytics to time insights
asset ecosystem to investments
discover new across across all better
maintenance optimize and track
customer multiple/all digital media understand
service returns
segments devices channels purchasing Task
delivery Customer self-
Big data to behavior automation
optimization Virtual service
improve
customer through digital organizations XaaS
experience technology enabled by opportunities to
such as mobility and digitize the
sensors seamless technology and
cooperation infrastructure
assets
Emerging technologies, particularly social media (and social media marketing), are facilitating
Demand Generation by building awareness and brand interest.
With an increasing number of customer touch points and ability to collect and unify customer data
across these various touch points, we are better able to understand our customers and their
interestsleading towards customer micro-segmentation.
Likewise, advertising platforms (as they, too, are collecting more and more customer data) also allow
for more targeted ads. You can reach consumers by demographics, behavior, location, and so forth.
The key to Demand Generation is not scale, but rather personalization and improving
the customer interactionthis involves a cohesive and optimized channel mix.
WEBSITES SEARCH
We can "follow" our customer online from website to website through re-marketing
and re-targeting technologies.
Prior to the Internet era, customers had limited interactions with a companye.g., retail salesman,
telephone customer service. With emerging technologiesnamely, Social Media, Mobility, Internet of
Thingsthe number of customer touch points has increased dramatically. This is both an increase
in number of ways for the customer to reach company and an increase to the number of people
within a company to reach the customer. Companies now have the ability to constantly engage with
the customer.
Thus, Customer Experience has grown in an increasing importance. In fact, growth tends to come
through Customer Experiences and relationships that adapt to their dynamics and demands.
Information is at the center of the transformed digital business model. Information is usually the
basis for differentiating Customer Experiences. Personalization is critical to an improved experience
for the customer.
As Customer Experience has evolved through an increase in touch points and personalization,
naturally, so has the Customer Purchase Process. Customers can be reach now with:
New and optimized products and services
Likewise, existing channels, services, and products can also be improved and better leveraged.
For instance, there is growing trend of XaaS (Everything-as-a-Service), with the most common being
Software-as-a-Service. XaaS has been associated and used with many core components of Cloud
Computing, e.g. communication, infrastructure, data, and platforms.
As we can better target customers and tailor our offerings, customer profitability (or revenue per
customer) is a metric that should see considerable improvement. Technology also shortens product
development cycles and reduces the time to market for offerings.
For more and more offerings, customer are able to purchase from anywhere (online,
offline), on any device (phone, tablet, PC), and at anytime.
Operational Improvement
Process optimization Reduced production costs Adoption of Lean and Agile Shift to self service
Reduction of manual effort Reduced inventory costs methodologies Automated lead nurturing
through automation Faster, better, and more Rise of XaaS cloud
informed businesses computing with marginal
decisions driven by Big customer acquisition costs
Data
Use of predictive analytics
It is important to realize that we may not be able to realize digital ambitions if we are shackled by the
cost, complexity, and limited capacity of legacy systems. Companies are increasingly reducing costs
to further invest in a unified digital infrastructure. A digital business platform supports a diverse set
of customer and operational requirements with a single set of resources.
Information is the fuel for more efficient operations that deliver better customer
experiences.
Overview
Growth in a digital world is a strategic choice, with implications throughout the Value
Chain.
Formulating a Digital
Business
Transformation Strategy begins
Driver 1 2 3 4
Levers Demand Reach &
Customer
Customer
with a firm understanding of
Purchase what and how technology
Generation Selection Experience
Process
impacts these levers in our
organization.
OPERATIONAL IMPROVEMENT
Business
Process Efficiency Asset Utilization New Business Models
Determine how and what information can be shared across the organizationacross
multiple leversto maximize both growth and efficiency gains.
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