Posted on December 8, 2014 by

Understanding and owning the customer ecosystem

The world of digital is changing the face of the business landscape. Established household names are now going toe to toe with new kids on the block, and in some cases their customers are becoming the competition. The product is no longer the differentiator, it is about owning the eco system, and it is the organisations that can tap into it that will be the ones that will maintain market leadership.

We have technology, finally, that for the first time in human history allows people to really maintain rich connections with much larger numbers of people.

Organisations are not designed for adaptive change

Most established organisations are not designed for an adaptive digital environment. Rigid processes and silo based business functions make quick adaptive change based on the needs of the business almost a military exercise. The abilities which are required to make digital possible are delayed, or in some cases not even delivered due to an operating model which is not designed to deliver incremental integrated changes.

The gap between risk vs. reward impacting adoption

The move to a digital world makes the business case for new ideas difficult for management to quantify. Senior management in most cases are still trying to understand what digital means, which impacts not only decision-making, but also organisational adoption. Customers who have an attachment to a brand are provided with limited choice and are forced down the usual channels until management can decide what its digital strategy is.

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The new world battle with legacy

When embarking on the digital journey organisations are, in most cases, faced with the challenges of legacy IT systems, which are heavily interconnected. Often systems are badly documented and the knowledge of their inner workings is no longer in the organisation. Architecture teams approach digital in the same way as any other system, which results in slow delivery with an inward focused approach. Customers who want a seamless digital experience encounter poor performance, and irrelevant disjointed information.

30% of 5.2 billion mobile users now use smartphones. Mobile accounts for 25% of all web usage. In short, if you’re still doing business and research only on the web (or offline), you’re missing out

How digital silos get built

Organisations apply old school management thinking, a new department is quickly created, which has to have its own processes, technology, and in some cases specific digital products. Very quickly a silo is created, and the organisation’s technology landscape becomes more complex. No one understands the digital department, and other functional areas start to work independently.

Digital Capabilities do not serve the customer

The digital capabilities tend to be designed around the constraints of the internal processes and technology. As a result customers are presented with products that can only be used across specific channels, which limits choice and leads to frustration.

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Making social media part of your incident management capability

42% of customers who voice their frustration about a service experience on social media expect a response within 60 minutes. Unanswered complaints can quickly go viral, causing real damage to a company’s brand Embracing social media brings the organisation closer to the customer; enabling them to learn from the customer sentiments, identify areas to improve, and retain customer loyalty

Organisations are set to fail the digital customer

Traditional organisations don’t look at digital as key part of their business. The approach to a digital transformation is given the same priority as any IT change and perceived as a one-off investment. Changes to systems and processes remain internally focused and responses to change become complex. The organisations which embrace digital become proactive and are able to align their systems and processes to the behavior of their customers, which enables the digital experience to continually evolve with their customers.

Today there are more than 10 billion things connected to the internet – by 2020, that number will grow to 50 billion

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Using digital to build strong customer relationships

Customers are surprised when a digital experience almost second-guesses them, and almost understands what they need before they do. Using the data captured across the digital eco system starts to build a unique picture of customers, which enables organisations to create highly personalised interactions, creating those “Ah Ha” moments of insight. This leads to greater customer satisfaction, and stronger relationships.

Embracing Digital to enhance your existing capabilities

Adding the required processes and technology to existing capabilities enables organisations to leverage digital to make meaningful connections between people and devices in a business context. Silos are removed and the information across capabilities are brought together, which goes beyond transactional relationships; it starts to forge deep human connections, and even creates moments of magic for customers, and employees.

Plan for evolution not revolution

The world is going through a digital transformation; customers and businesses are becoming much more connected. These connections are creating real imperatives for companies. Success can only be realised when the organisation makes digital a key component of its strategy, and not just a single objective. This enables management to focus on the capabilities which are suitable for digital, ensuring that technology and processes can be continually grown, aligned, and extended, based on the needs of the customer.

Full Article:

http://liveworkstudio.com/topics/understanding-owning-digital-ecosystem/