The key challenges of digitization

The key challenges of digitization
21.11.2018 Kathrin Kempf
Schach
Every company is currently dealing with digitization. But what are the exact challenges that companies have to master in order to succeed in the digital era? In the blog article “The pillars of digital commercialization“, iq! tackles the seven areas that must be included in any digitization strategy of Marketing and Sales, e.g. Multichannel, Digital Know-How or Lead Management. 
But what are the exact questions that a company needs to answer in order to be digitally successful? What changes need to be introduced to make digitization a reality?
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Digitization shakes every company in the basics
Source: iq! Management Consulting

Four key challenges to digitization

Transformation of the Core Business. Digitization shatters every business model at its core. Manufacturers become service providers. Customers become users. And products are absorbed into ecosystems. An OEM does not just produce cars anymore. He distributes navigation, entertainment and security services. The product “car” is networked with other road users, the infrastructure and the environment. In the near future, the customer may purchase a mobility service rather than a physical product.

This transformation of the core business is enormous. Completely new business models have to be developed, new business areas have to be built up. Customer contact is perpetuated. Digital products allow a contast flow of communication. Doing this in a sensible and customer-relevant manner is a feat.
Changes of the Value Chain. iq! sees two fundamental changes in the value chain alongside many other necessary adjustments. At the end of the chain, various digital channels must be integrated into marketing, sales and service. The entire commercialization process is switched to multichannel.
At the beginning of the value chain, development and production now have to produce or define digitized products with a corresponding service portfolio.
For example, traditional producers no longer just sell physical printers, production machines or kitchen appliances. Added to this are software packages, data models and server capacities, as well as the a relevant service portfolio. Customers want to digitally configure and purchase products, and they only come into contact with traditional sales at a later stage in the purchase cycle (see the blog article “Importance of B2B Marketing grows“).
Building-up of Know-how. Digitization places completely new demands on the knowledge of a workforce. Topics such as Big Data, Artificial Intelligence, eCommerce, Social Media, just to name a few, are to be developed and operated. However, few companies have the right resources. And the fight for talent is going to be tough.
Adaptation of Organization. Perhaps the greatest challenge is not only to define change in strategy papers, but to implement it throughout the entire company. At this point, even corporations that had been extremely successful in the past, just fail.
The iq! eBusiness Builder (see Whitepaper) bundles the digital activities scattered throughout the company, sets them up and optimizes them through a central unit. Only then are the changes carried out through the entire company and further necessary adjustments are made. Without a powerful “Digital Hub”, which also has extensive decision-making authority, it will be difficult to set up the digitized company fast enough.
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eBusiness Builder by iq! – a program to support the digitization of Clients
Source: iq! Management Consulting

Conclusion

Companies that want to digitize successfully should face up to these key challenges: transforming the core business along the value chain, building the necessary resources, and adapting to your own transformation. iq! has developed the eBusiness Builder for exactly these purposes. This not only includes a theoretical model, but explains how iq! is helping businesses to master digitization in a really pratical way.

 

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