Evolving Businesses: Ask The Right Questions

by CXOtoday News Desk    Nov 10, 2014

digitization

The accelerating speed of technology has resulted in evolving business models. While adopting new technologies to ensure higher ROI, the business leaders are compelled to devise strategies that take into consideration the value proposition.

A BCG study points to three-pronged strategy. A successful digital business demands proficiency on three fronts:  strategy, technology, and governance. It asks enterprises to answer the questions like: ‘How does your digital strategy tie in with your broader business, sales, and distribution strategies? How do you attract customers to your website? What is your value proposition? Is the end-to-end experience that you provide customers—from shopping through delivery—a consistently high-quality one?

Technology disruption with the advent of new technologies like IoT and wearables offers threats and opportunities for businesses as they need to not only change customer preferences, but require to undergo a complete transformation.

The proliferation of social media platforms has provided new opportunities for businesses. There is a need to redesign operating models and drive personalization.

Deloitte says digital technology can drive growth and increase efficiency and engagement. Most businesses will require some development to the existing operating model. Data analytics is at the heart of this process, with digital tools increasing the ability to capture, analyze and visualise, not only consumer or customer data, but supplier and operational data.

The C-suite is under constant pressure to deliver positive results even while experimenting with technologies. The most pertinent question for a CEO to ask here is “Will this technology enable or threaten my business?”

Data analytics forms the basis to understand the outcome of technology adoption.

That has been the case in ecommerce companies, who are increasingly depending on data to understand preferences and behaviour of customers.

Mark McDonald of Accenture says digital customers are different. They are better informed, more demanding, more discriminating and more likely to change products and services when they have a poor experience  “Inside-out thinking provides clear plans and paths for growth and results as executives see the world they want to see. Executing inside out strategies guarantee success so long as the world works exactly as planned,” he says.

The relevant questions to ask would be:  How is our competitors’ offering different from ours? How can we increase social media interactions?

By providing the right answers, businesses can ensure they stay relevant to their customers and market.