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What is Digital Transformation (DX)?
Digitalization is the use of digital technologies to change a business model and provide new revenue and value-producing opportunities; it is the process of moving to a digital business.
As business owners around the world consider what the business landscape could look like post pandemic, one thing is certain: many old habits/processes will have to change, in some cases, permanently. Small businesses (SME's) are facing some of their biggest challenges in recent times, many will have to learn how to re-engage with their customers and adapt to new demands in the marketplace.
Digital transformation is not just a fashionable topic of recent times, it is the reality for many companies that want to remain competitive and heed the voice of the consumer. You have to remember that tech savvy customers already know what digital transformation is, they are already in that era with their smart phones and other devices. They use new technologies on a daily basis, which for them is actually not “new” anymore.
Done right DX is fundamentally going to improve a business and meet consumer demand.
Why are businesses experiencing a digital transformation?
Digital transformation (DX) is being leveraged on organizations who need to keep up with emerging customer demands and therefore survive in the face of the future. It allows companies to compete better in an economic environment that is constantly changing in response to technology evolutions.
To understand why businesses are experiencing a digital transformation, it’s important to note that, thanks to DX, companies have the opportunity to optimize operating costs as well as increase process efficiency. This leads not only to lower operating costs but also better customer service, production planning and supply chain management.
As many digital transformations examples show, DX is not so much the future as the present. For SME's to remain competitive, it must go through this process, otherwise it will lag behind the competition, which is continuously improving or it will eventually fail.
Done right DX is fundamentally going to improve a business and meet consumer demand.
What are the benefits of digital Transformation?
Let's take a look at some digital transformation examples and the positive impact it can lever on a business.
According to SiteMinder, the worlds largest open hotel commerce online direct booking platform, business digitization reduces operating costs up to 20% and improves overall business efficiency. It also enables efficient cost management that implies a more effective control of production and sale processes. Digitization also allows companies to create new business models and to uncover previously untapped revenue sources.
The infographic demonstrates the flow process of a hotel booking in the hospitality industry and completely overturns the current method of booking a holiday. The traveller no longer requires a travel agent to book a holiday but searches his/her needs by smartphone via the Internet. Once identified the holiday can be booked direct with the hoteliers online booking system. This method is good news for the hotelier because the digital transformation gives the hotelier total control of their business rather than being controlled by online travel agents (OTA's), improves cash flows and importantly gathers real time customer data for the hotel.
SiteMinders' management system puts hoteliers in complete control over, who sells their rooms, in what market they are sold and at what price. Room availability is not confined to one or two OTA's but connects potential guests from around the world via their channel manager. The management system covers all aspects of the booking process from booking through payment processing and more.
Are you ready for your own digital Transformation?
Considering the above digital transformation example, (hospitality owners) it’s clear that a successful transformation is not only possible, but also profitable. Of course it requires, first and foremost, a commitment to implementing change, a good sense of market needs, creativity and a systematic approach when implementing new solutions.
However, if you meet these criteria, you can count on greater customer satisfaction, improved brand positioning and, last but not least, an increase in sales. That means it’s absolutely essential for SME's to take the leap into the realm of digital transformation. It’s time for digital!
Done right DX is fundamentally going to improve a business and meet consumer demand.
Audi City points the way to the future of premium car sales: This physical cyberstore presents Audi’s entire model range using virtual technology throughout, and offers top calibre personal advice and service. The showroom concept therefore blends digital innovation with the strengths of the physical dealership, and acts as the main innovation lab for digitally connected sales activities at Audi. At the forefront of developments in this pioneering field, the Company opened the first Audi City in 2012 and has since been gradually refining the successful formula.
Audi City offers a special brand experience, with no pressure. It doesn’t matter whether visitors are there to surf through the world of Audi out of sheer curiosity, find out more about the latest technologies and services, or configure their own individual model with a specific intention to buy and place an order. On top of that, every guest visiting Audi City can access almost the entire range of services offered by a classic dealership – because in organizational terms the cyberstore acts as a satellite outlet of a conventional dealership.
Done right DX is fundamentally going to improve a business and meet consumer demand.
The outbreak of COVID-19 closed the company’s brick-and-mortar shops in China. Michael Kors then moved to Tmall - a Chinese retail e-commerce marketplace and launched a completely new service. The company also decided to improve the Chinese consumers’ experience by designing a special pop‑up. It delivers a personality quiz that analyses information about consumer’s favourite activities or food. The result is a personalized message with Michael Kors product recommendations from the brand founder. This way the company kept consumers engaged with the brand tightening the relationship and stopping the outflow of customers.
Positive digital transformation examples highlighted above share common traits. They were well thought through and adjusted to the recent changes in the environment. What’s even more important, they aimed to deliver even greater value to the end consumers' and were committed to the principle of digitization over time.
Digitization is open to businesses of all types not just the domain of the big players. Embracing digitization by adopting digital technologies to modernize your business model specifically geared to your business objectives is going to fundamentally improve the business and importantly elevate it to a brighter future.
The business landscape has already changed due to the pandemic for the small business owner there will never be a better time to embrace and take advantage of digitization.
Digital transformation in marketing for small business
There are four types of digital transformation: business process, business model, domain, and cultural/organizational. We often see corporations focused solely on process or organizational transformation. Failure to address all four types leaves significant value on the table.
Technological change is nothing new but this round of change due to the pandemic is happening at a rate faster than ever before. Some business executives cite the risk of disruption as the impetus for transformation; that risk is certainly real. But while new technologies may threaten established businesses, they can also create unprecedented opportunities.
The examples below focus on the transformation in digital marketing freely available from web builder platforms like Wix who offer a comprehensive range of applications to help small businesses get started and noticed on the Internet.
Digital marketing isn’t a single practice but, instead, is the sum of several elements. Some of the most common examples of digital marketing include:
Search engine optimization (SEO)
Content marketing
Social media marketing
Pay per click (PPC)
Native advertising
Affiliate marketing
Influencer marketing
Email marketing
Marketing automation
Online PR
Mobile marketing
Conversion rate optimization (CRO)
While this may seem like a lot of different types of marketing, keep in mind that you don’t need to implement each and every one of these practices. However, it’s important that you familiarize yourself with them so that you gain a better understanding of which methods should go into your own marketing strategy to meet your business objectives.
Overall, digital marketing is a broad concept that covers a variety of practices and uses a wide range of online channels. Underlying these different elements, however, is a common theme - the ability to take advantage of the huge marketplace of prospective customers online.
Whether you decide to grow your blog, create an email newsletter or advertise on Google, you’ll be able to bring more traffic to your site, build stronger connections with your customers, and track and measure your results. Not only will this help you gain customers in the short term, but it will also help you build a sustainable, long-term strategy for future improvement and growth.
To sum up if you found these digital transformation examples interesting and the examples of apps that helped transform these companies inspired you to consider taking similar steps, contact michaeljfoxwebdesign who has the ability to prepare a solution for you!
Done right DX is fundamentally going to improve a business and meet consumer demand.
End
Acknowledgements:
Ideamotive
Braunhub
Michael Kors
Audi City
SiteMinder
Wix
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