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Why Strategy, not Technology, Drives Digital Transformation

Contributor: Ronald van Loon
Posted: 10/27/2015
Ronald van Loon
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So how do you drive your digital transformation as a company? How do you create the right circumstances for adopting a customer-centric culture? Of course these questions can only be answered specifically for each company, depending on the maturity level in terms of data process management and mentality. However, when it comes to defining the right approach, there is a strategy to follow to guide your company’s digital transformation.
Every company in the world is looking to secure its digital future. This ‘digital transformation’ is a difficult process to master. Companies need to ask themselves whether they have what it takes to offer consumers the experiences they demand and to outperform the competition. But there is no standard checklist of changes you need to make to drive your digital transformation. Every company needs to determine where it stands and where it needs to go. But that does not mean they have to be in the dark.
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We all know our world is digitalizing at an amazing pace. There are more and more persons and devices connecting every second, dramatically changing the way we interact. It also changes our behavior as consumers, because we know that there is always some other company or party offering a similar product or service. We can compare prices and offers, read what others have to say and use many other sources to make the choice we think is right.

Consumers in control

As consumers, we realize we are more in control than ever before. But at the same time, we are confronted with a choice overload. Having many alternatives is nice, but how can we determine the best option? Interesting enough, that answer is to be given by companies. It is up to them to prove they are the best option and to prove that they are doing their utmost to give you the best possible experience.

Relevance

For companies, ‘relevance’ is the magic word. The key to outperform the competition is offering the most relevant experience for your customer. But how can you make sure that you are present with the right message at the right time and place? Therefore, you have to get to grips with the entire customer journey. As a company you really have to get to know your customer on an individual level and use those insights to create a long-term relationship. Everything you do as a company has to be in the interest of the customer.

Customer-centricity

This customer-centricity relies on the quality and availability of customer and touch point data. As a company you have to be able to collect and make sense of customer data to create sustainable success. When it comes to data, many companies immediately think of deploying data science and technology. Of course this is very important, but once you know how to collect and process data, you still have to be able to seize the opportunities you get to really optimize customer experiences. Therefore, behavioral science is equally as important if you really want to offer your customers the relevance they demand.

Commitment

Mastering customer-centricity through high-quality data process management means aligning the right people, processes and platforms. Everyone within the organization needs to be on board. Of course some people more than others, but customer-centricity should not only be a marketing mindset. If there is no commitment from the entire organization, you will never fully complete your digital transformation.
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Thank you, for your interest in Why Strategy, not Technology, Drives Digital Transformation.
Ronald van Loon
Contributor: Ronald van Loon