Remember Kodak? Kodak was a global leader in analog cameras for over a hundred years. At one time, Kodak had a 90% market share in films and was so successful that consumers would call their memorable photos as “Kodak Moments.” In 1975, Kodak was the first company to invent a digital camera. In 2001, Kodak invested in Ofoto – a photo sharing site and used it as a platform for people to print digital photos. Imagine if they had launched it as a social networking site where people would share photos? And then came Facebook.
Kodak filed bankruptcy in 2012. Why did a global giant like Kodak stumble? An easy answer is that Kodak got carried away by its over-whelming success and didn’t pay enough attention to technological advancements in digital camera. However a deeper analysis of Kodak’s failure reveals that Kodak pioneered digital cameras, invested significantly in the technology, and even understood that photos would be shared online. Where they failed was in realizing that online photo sharing was the new business, not just a way to expand the printing business.
Kodak failed at embracing the new business model which the digital disruption brought about. And Kodak wasn’t the only victim. There is an endless list of businesses and industries which companies like Amazon, Uber, and Facebook have disrupted.
So what is Digital Disruption?
Simply put, Digital Disruption or Digital Transformation is conceiving new (smart) business models and using digital technologies for the creation, implementation, and operation of these business models.
Digital Transformation requires businesses to consider 3 main aspects:
We live in a hyper-connected, always-on, mobile-first world. Before customers contact the salesperson of a supplier or visit the store of a product or a service, they have already done homework and made up their mind as to which supplier to go for. Hence, the job of marketing in any organization has become even more important. Every marketing team needs to address the challenge of getting a share of customer’s attention while they’re evaluating alternatives.
Most marketers commit the mistake of predicting customer needs and based on their predictions, roll out new products and services earlier than their customers’ needs have evolved. Research has proved that this strategy results in products or services that are either too sophisticated, too expensive or too complicated for customers, and hence, fail to produce the desired results. Even worse, they open a window of opportunity for innovative disruption to happen at the bottom of the market.
Instead of predicting what products customer will buy, marketers need to think in terms of the problems their customers are trying to solve. Following this approach, marketers will be able to develop convenient, reliable and affordable solutions that customers will adopt faster. Amazon did that, Uber did that and so did Airbnb.
Streamlined Back office
As much as it is important to conceive the right customer engagement model, it is equally important for businesses to streamline back office. This might include optimizing your supply chain process, enhancing collaboration mechanism within your organization and with partners or revamping your payment collection procedure.
Right Digital Infrastructure
IT must play the pivotal role here. They need to deploy a combination of solutions which will enable the marketing team to attract and engage customers where they spend most of their time – on search engines and various social media platforms.
The right digital infrastructure must facilitate customer experience enhancement and help streamline back office.
• Data gathering, storing and analyzing to arrive at informed decisions and roll-out products and services offering
• Mobile applications
• Streamline and automate workflow
• Internet portal to offer your products and services
• Electronic Payments via the Internet portal
• Collaboration platform
How can NourNet help?
NourNet can support your digital transformation initiatives in the following ways:
• Draw your customer experience journey
• Provide the right technology platform
• Offer Managed services