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Assessing your digital maturity
A digital journey will look slightly different for every customer as each organisation will have its own unique strategic goals. So how does one measure progress against their peers and competition? There is commonality when we consider what a digital maturity model looks like for organisations.
What are the gates to pass through on a digital journey?
- Zero-base pipeline
- Stop what you are doing, take everything out of your project portfolio and justify why it goes back in.
- Create an assessment model and criteria (this is where a MOSCOW model can be introduced)
- Digital Strategy Development
- Meet with business leaders to validate and identify strategic organisational goals
- Work with technology leaders and SME’s to develop your guiding principles
- Create an aligned Business-Tech roadmap
- Build your strategy and a menu of digital initiatives from your roadmap
- Build Capacity — talent and infrastructure
- Use the assessment models defined above to identify technologies that fit the strategy
- Recruit to build centres of excellence and internal IP
- engage with the partner ecosystems for SME and extended capability
- Creating a CX/UX centricity
- Use data to generate insights on customer needs and market conditions
- Take and Agile approach to development and create a culture of CX centricity
- Grow market share
- Increase customer lifetime value
- Evolving to a digital platform — (Digital Agility Achieved here)
- Plan and execute initiatives that enable data exchange
- Create a model for data commercialisation
- Introduce new revenue streams
- Enabling your ecosystem (Doubling down)
- Build a channel and increase partners to enhance your ecosystem
- Grow channel revenue streams
The two main streams of a Digital Transformation Programme of Work are either transformation or optimization — each has its own driver (increase market share, create new revenue streams, drive down cost, reduce risk, etc).
Each customers journey will take a slightly different path, however we can distil the process into key initiatives and drivers. The three main drivers and their initiatives for DT programmes are:
- Adaptability: Create Market Share, Take Market Share, Building a culture of innovation
- Resilience: Preparation for disruption
- Effectiveness — Increase collaboration, improve the CX/UX, modernization (and optimisation)
Organisation goal alignment
While each business will have its own strategic priorities, these decisions are ultimately driven by customer demand, shareholder demand or market conditions. When building or growing revenue streams, businesses can attempt to create market share or attempt to take market share.
We view these operating models as either inside-out or outside-in.
A traditional inside-out approach is typically based upon a product, with a feature set, that is promoted within an established market. The inside-out approach is centred solely on the organisations ability to create products, features and sales messaging to take market share.
An outside-in model starts with a focus on the customer and market conditions and channels that through a streamlined or an improved UX/CX enabling the businesses to create market share. Start-ups and disruptors play with an outside-in mentality. Netflix is a good example of an inside-out business that transformed to an outside-in model through digital transformation. Blockbuster is a good example of a business that failed to transform.
Outside-in business models are not exclusively linked to creating market share. There are many examples of a business that took market share with an outside-in approach — AirBnB is a good example of a business who started with a focus on the customer experience and took market share from competitors.
For well established organisations who currently have a mixed model (have commenced or are about to start their DT), the world is at your feet. You have longstanding customer relationships, a strong brand with a mature sales and marketing process and the data and insights to guide you through turbulent conditions. However we see a number of businesses that are bogged down, fulfilling board and shareholder demands and busy working in the business, rather than taking a strategic view of the next 20 years and how to set the organisation up for success. And of course, planning is only part of the story — execution is another ball game.
The outside-in model will dictate that customer demands and market conditions will drive product innovation. But how do you know what your customers are telling you? Your data tells the story.
Building a data strategy is an imperative, critical centrepiece of your digital strategy. By 2025 there will be over 50 billion connected devices generating over 175 zettabytes of data. This honeypot of information has the answers to help your organisation increase customer lifetime value, create new revenue streams and grow your market share.
Machine Learning to augment your organisations capabilities
Enabling your data to unlock insights through predictive analytics, leveraging Machine Learning models such as Bayesian Linear Regression, help identify trends and forecast outcomes. However ML is only as good as the data you train it with. How we store, manage and present the data to not only our ML models but also our business units and teams, is central to enacting upon our digital strategy and maximising value from our data.
Together, Data, ML and our people give organisations the edge to stay ahead of competitors, keep customers satisfied and ensure continued growth of the market share created from our collective innovation.
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