Digitalization and digital transformation are on everyone's lips - but what is it all about?
Digitization and digital transformation are basically just words that have managed to get a higher meaning through current developments. The impact of digital technologies, digital trends and digital customers is different for everyone. For example, eCommerce has already successfully revamped the retail sector. Such “disruptive” (fundamental) changes will sooner or later affect all sectors and areas. How strong and when can no one predict exactly, but every company should deal with the new digital reality.
Digitization has various orientations and concerns different areas in the company.
“Data is the new oil,” a mathematician once said, and every company should use this valuable resource to profit from it. Big Data is a collective term that describes digital technologies that make it possible to collect and evaluate data from various sources. The data is too large and complex to be processed with conventional manual methods. Big Data serves to improve business processes in all functional areas of companies.
Internet of Things
Everyone has already noticed that objects and devices are becoming smarter. We can talk to our washing machines, preheat our oven via app and control our lamps via a voice command. This automation becomes possible with the Internet of Things, i.e. the networking of things. Small computers and sensors are integrated into everyday products to make them smarter and therefore more user-friendly. Companies can use this to monitor their production facilities on the one hand, and to offer products that become smarter and more user-friendly through digitization on the other.
Industry 4.0 is the next industrial revolution. After steam engines, assembly lines and microelectronics, we have now transformed ourselves into a communications and information industry. The handling of these elements is the focus and the control and connection of production plants to digital systems should help to work more efficiently and also more productively. Networking IT and people is an important part of industry 4.0.
We are developing into an omnichannel world. People are increasingly used to shopping online, offline or even hybrid. The general trend towards innovative online shops and e-commerce opportunities is leading to a great upheaval for many retailers. Trends in customer expectations such as same day delivery, self-collection or even an ubiquitous shopping experience mean that many business models have to reinvent themselves.
However, customers not only change their purchasing behavior with digital channels, but also react in the way they are addressed, when and where they are addressed. The changed behavior leads to the fact that marketing has to adapt accordingly. It is about communicating with people and supporting them with information and competence. Storytelling and content marketing are on the up and up and customers expect personalized advertising.
Digital Business Processes
When it comes to optimizing processes, digitization and thus automation is at the forefront. This is precisely where the strength of digital technologies lies. With a one-off effort, simple as well as complex processes can be mapped, thus simplifying cost-intensive and repetitive work. This allows companies to focus on customers or new business models within the various business areas.
Customer Centric Strategy
“Its all about the customer” – The big companies do the trick and the small ones follow. You can see how companies that are very customer-friendly and strictly responsive to customer needs are more successful. Amazon is not only so successful because of the convenience of its customers. They have set themselves the goal of making their customers happy and that is what makes them successful. Today, new business models must clearly define and focus on customer benefits. It is not enough to develop a product and market it. The aim is to develop the product together with the customer as a solution to a problem.
Digital Business Development
A new world requires new business models – it’s that simple to express. Particularly when it comes to bringing the customer into the centre, there is a major change in business models. Technologies and digital processes make it possible to offer new products or to reposition existing products. For example, physical products can now be delivered as a service with usage-based billing.
The impact of digital technologies, digital trends and digital customers is different for everyone. Digitalization offers not only the possibility to connect new business areas and products, but also to establish your own company through innovations. Current trends, start-up ideas and new technologies offer an extension of the own business model and help to make companies future-proof. Digital transformation is the implementation of the strategy and the introduction of innovation processes.