Seven of the world’s ten most valuable companies rely primarily on digital platforms. They are Apple, Microsoft, Amazon, Alphabet, Facebook, Tencent, and Alibaba. These companies lead the way in digital transformation in an increasingly digitalized marketplace. As of January 2020, these seven companies represent more than $6.3 trillion in market value. The digital transformation landscape can be viewed through the lens of four elements, each with its own four sub-elements.
The Drivers
Global competition is a key driver of digital transformation. New online market entrants are putting tremendous margin pressure to traditional brick and mortar businesses. Retail, healthcare, travel and education sectors have all been overhauled as technology disruption sweeps across these sectors. Businesses recognize that in order to stay relevant, they have to innovate digitally.
Customer Expectations
Customers today have high expectations. If your company is not able to satisfy them, they will move on to the next company that can. They are connected all the time thanks to blazingly fast connection speeds from telecommunication providers. Highly savvy consumers expect personalized shopping experiences online. With companies such as Amazon and Netflix learning and storing their preferences, each ‘trip’ online ensures a sophisticatedly curated session to suit their preferences, upping the ante for future visits to any other site. Given the simplicity of apps, one-click shopping for innovative products and services via a mobile device is now the new norm.
Business Response
In response today’s customer expectations, businesses have no choice but to innovate faster to deliver more value with less effort. In short, they need to attain cost leadership while delighting customers. This can only be achieved with digital technologies which allow business process efficiencies that can be sustained over an extended period of time. A well set up automated operations can consistently produce perfect quality for both products and services that consumers value.
Enablers
Companies like Google, Amazon, Facebook, Netflix and Airbnb are able to respond faster to consumer demands than their rivals because of a solid digital operations foundation that bolsters a cohesive internal team, guiding prospects through the buying stage, exceeding customer expectations, gaining repeat sales, and cultivating loyal fans who provide solid referrals. Their cloud-enabled businesses run with increased efficiency, serve customers better and drive higher profit margins. Through artificial intelligence, digital information is weaved together to provide digital insights for decision makers to develop new possibilities and outcomes.
For more information on how to kick start your company's Digital Transformation, do drop an e-mail to sales@zoolooinfosys.com
Explore more
- Learn more from our eBook series on Digital Transformation for the Wholesale Trade
- Learn more about our “Digital Backbones”
