To be successful, companies must focus on customer experience and to remain sustainable, they must invest in digital technology.
5 Force’s Model In The Age Of Digital Disruption
The digital Media Revolution is shaping the way we conduct business and as a result how successful firms can be in the digital age. We are now in the age of “Digital Disruption” whereby major firms across all industries are seeing their competitive landscape changing due to the digital technologies. Consequently the Porter’s 5 Forces Model needs to be reviewed in this digital age. For all industries, barriers to entry decrease while competition rises dramatically. Additionally buyers have now more control than ever before, with the ability to gather all information necessary for their decision-making process as well as more options to switch providers. Consequently businesses must embrace Digital Transformation and focus their strategies on enhancing the customer experience in order to remain competitive. To be Successful companies need to focus on Customer Experience.
For A Detailed Understanding Of “Digital Disruption” Watch This:
Big Data & Customer Satisfaction
Learning about customer is easier than ever. IBM estimates that by 2020 there will be 300 times more information available than 8 years ago. With Digital Marketing, Mobile and Social Media marketers can map the customer journey; and then learn, adapt and satisfy its customers. The Internet Society considers that it is very feasible for marketers to track customers via their digital footprints. Traditional customer relationship management can be boosted with digital quantitative and qualitative data. However, if the majority of businesses understand the need for relevant customer insights, the overload of data available and the lack of appropriate capabilities to process and act upon the data are the greater challenges for many organizations. For instance, Kapo states in a recent report that 68% of businesses and IT leaders agree that Big Data can improve customer satisfaction while 49% are concerned about the time, resources and skills required. Some barriers are for instance related to the capability to integrate different data sources and providing real time data into a context or that often soft data related to the customer experience will be considered irrelevant or not as an actionable insight.
Additionally, Big Data means different things to IT and Marketers. IT practitioners focus on structuring, tagging, cleansing and storing data while Marketers seek real time and contextual information about their customers. While IT acts as a technological inhibitor for Customer Insight Practitioner and Marketers, we often see a disconnection between them with different motivations and objectives regardless of their common interest of gathering actionable data about customers. Marketers without IT and vice-versa cannot implement the technology required to gather the data that will be converted into marketing intelligence. The needs and practices to facilitate actionable insights and CIO-CMO collaborations are crucial to emphasize creativity and collaboration for innovative strategies. With no surprise we see now, many Research Agencies promoting CIO-CMO relationships via various business articles and innovative events such as: eTouch, Accenture, Forrester, IBM and IDG.
Modified Role Of Marketers
Furthermore, the role of Marketers has changes more in the past few years compare than the last 50 years. As a result there is a shortage in digital skills. According to the Guardian Modern Marketer require a new set of numerical and analytical skills in order to succeed. For instance as per Mc Kinsey & Co, the requirement for the talent of data-analytics will go beyond the supply by an average of approximately 45% to 65% by 2018. Looking at the US alone, they might encounter a deficiency of 135,000 to 185,000 human resource with profound methodical talents as well as 1.4 million managers and analysts to study Big Data and make assessment based on their judgments. Many corporations concerns are related to the attraction of a niche pool of digital talent along with the training and retention of current marketing experts.
Reshaping of Marketing Departments & Technology
Additionally businesses also face difficulties to adjust their strategy, tools and processes. If Organisations need to recruit new talents, they also need to reshape their structure to facilitate Digital Excellence. Gartner considers that digital transformation will impact organizational structure, skills and processes, and radically change marketing investment to achieve such objectives. Furthermore to share another perspective from IDC suggest that by 2020 marketing departments will be reshaped in three organizational systems such as Content, Channel and Consumption, where the core capabilities will be data and marketing technology.
Conclusion To Digital Transformation:
This reshape of organizations not only touch their structures but also their long term objectives. Without doubt technology is at the core of competitive advantage as it is the bridge between business and customers. This is why to remain Sustainable, business need to invest in Digital Technologies. The CEO of Forrester Research reinforces my opinion by predicting that “In the future, every company will be a software company. Software is the new business currency more important than financial capital”. Innovation and Emerging technologies are competitive capabilities as it touches all departments from HR to Finance along with Sales & Marketing to Research & Development. Emerging technologies including analytic, mobile and the Internet of Things, social, and cloud service, are the essential component of a successful digital transformation.
Authors Bio: “Ericka Pionin”
Ericka Pionin is a “Digital Advocate” and passionate about corporate business. She helps businesses and entrepreneurs to become competitive in the digital edge. Ericka ‘s biggest assets are her capability to connect opportunities into business action as well as to be straightforward and bold when she advises her clients. Connect with her professionally at LinkedIn or follow her on Twitter.
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