Strategy and culture, not just technology, are the driving forces of digital transformation
25 June 2018
Riccardo Jelmini, CEO of DigitalGO
The new business ecosystem we are living in today is shaped by three key factors: global broadband coverage, the incredible expansion of smartphone usage and the boom in the app economy, indicating a clear shift towards customer needs and their digital experiences. Responding to user expectations has become the number-one priority for companies: to provide personalised, high-quality content and services in real time that are both cross-device and cross-channel.
However, the rapid progress of technology has disrupted the business models of big enterprises, which are struggling to offer a renewed experience for their customers due to heavy legacy systems. Let’s take big industries such as retail, telco or utilities as an example: they have large user-bases but they are unable to engage them fully through mobile. They need to become competitive with over-the-top(OTT) players who are “born mobile”, such as Netflix, Uber or Spotify. And they need to do it now.
The first step towards a customer-centric strategy must be a digital transformation process. DigitalGO, a creative, marketing and technology hub, is the perfect ally for companies willing to embrace digital transformation as the main driving force, helping them rethink and develop a digital go-to-market strategy.
DigitalGO is an Italian company with a global reach and a market presence in 18 countries. Combining technology, digital marketing and creativity, the company’s unique approach is essential in supporting enterprises facing the challenges of digital touchpoint optimisation and customer engagement. Our key expertise is in the redesigning of the user experience through a multichannel strategy during the entire customer journey, from pre-sales to post-sales. What makes DigitalGO stand out is the fully integrated technology, marketing and content stack, and the leverage on profound local market knowledge, from Europe to Latin America and Asia-Pacific.
At the dawn of the fourth industrial revolution, companies need to exit their comfort zones and understand that change is a matter of culture. DigitalGO can unlock their full potential and help them embrace the new mindset: think digital!
Empower your Digital Transformation, scale up your business today. Visit digitalgo.it/en
Welcome to Business Reporters, the Future of Mobile campaign. I'm Alastair Greener. Forbes, in a recent article about customer experience, has quoted Maddenisms-- business wisdoms from the famous coach, Joe Madden. What can we learn from him? To do simple better, which is the bugbear of organisations as they struggle to make it easier for customers when browsing and choosing services.
As it turns out, technology is not everything. Smart coding and flashy design doesn't equal user friendliness or the satisfaction of a customer that he or she has been valued, the service has been personalised, and quick. Why do most organisations struggle to turn technological innovations into winning customer relationships? This is what we're going to discuss today with Riccardo Jelmini from DigitalGO. Good morning.
So what is the current state of the digital economy?
We are witnessing an enormous explosion of smartphone usage and of broadband coverage, and the booming of an up economy. This is the new ecosystem. And the most important thing is that this ecosystem is created by the final customer. There's smart phonization is changing our life. It's no more any more a trend. Just think that there are more than 2 billion smartphone world wide, and it will double by 2020.
The data consumption grew 40% a year, and there are more than 3 million apps on the stores. Consumer is changing behaviour because of that. Because this is creating a new entire ecosystems where were the customer behaviour is changing, and drives the innovation and the transformation. So at the end we are competing in a data driven world, finding the synergies between marketing and technology. And the business model, as usual, has been disrupt. and this is basically-- this is the status. It's already an entire new business ecosystem out there.
Now, the customer seems to be the key concept, here. So what exactly does the customer want?
Oh, the customer is demanding and more self-confident, and he warns fast connectivity, perform on device and quality of content. The fast connectivity is because you want to have access to internet and content very fast and easily. Perform on devices is, because, of course now, the smartphone are more like computer that a phone now. And so they need to be-- the expectation is very high. And the content has to be the quality, because they want to be entertained.
Another thing is that they want to be also engaged. And regardless the platform they are using-- just think example of Netflix, where no matter the devices, you are looking the movie.
You talked about not fully digital enterprises. But that seems odd to me. I mean, we're in 2018. How is it that they're not fully digital yet?
The rapid change of technology has been very fast. And most of the big company, they have legacy systems. The most successful believes that they have to perform their company in order to compete. There are many, many, many issues that have to be addressed before. There are so many strengths that can avoid a quick transformation of the company. Naturally because they're legacy systems.
So I would say that first of all, that innovation do not come cheap. And so whatever you do the capital location within the company, the investments mainly, most of the times, go through investments that have a better return and a quicker return on it. So it's a long-term plan, the digital submission of a company. Also, there are some internal inertia. Innovation and the change of it and the digital submission is also-- most of the [INAUDIBLE] know they have to do. But really understanding what does it means and how to proceed this is something that makes some companies that are no fully digital within 2018, I would say.
And that's a challenge, isn't it? Because if you have organisations that aren't fully digital-- they're trying to work with customers who are embracing new innovation at every opportunity. And therefore you get this widening gulf between them. So how long do you think these companies have before they get completely left out in the cold?
There's no time left. Because the behaviour of the customer has changed. Our customer now is used to download an app, subscribe to the services, put in the credit card then having access to the service right away. It's very easy way. And so he is changing his behaviour because of this. And let's think, for example, of for instance, a big company where have the huge customer base like [INAUDIBLE] or even [INAUDIBLE].
They still have a physical driven channel go to market. So they still have shops where the customers go to interact and to have services from them. So I would say that the customer they have to understand, for instance, that the customer is the heart of the transformation. But there is no time left. This is really the issues that the cycles get shorter and shorter. And there is no time left. It's time to exit from the comfort zone.
Let's say I'm an organisation, and our c-suite has decided yes, we need to catch up. We need to fully embrace this transformation. What are the sort of questions that the c-suite need to ask to be able to help draw that roadmap?
First of all, I would say that transformation is a matter of culture. The focus should be setting a clear goal for the future, and settling a road map for that, a plan for that. They should, first of all, should come from the executives of the company. If you don't trust from yourself and you do not believe on this change, it's very tough then to make this change happen in your company in order to deliver the expectation, match the expectation of the customer.
Where does DigitalGO fit into all of this? How do you help to resolve these issues?
First of all, we did this because we come from [INAUDIBLE], a company born in 2007. And we transformed the company into the DigitalGO. Actually, DigitalGO, value proposition is we are a digital enabler, mobile first. So we are supporting our company through our munni value proposition.
Because we have our creative and technology company who can support our customers on the redesign thinking of the customer journeying and providing the customer with end to end solutions going from the pre-sales, from the engagement of the customer to the post-sales, for example, for instance with our platform for the digital carrying to work with the digital customers. So as we support the company our customers with the digital transformations, and also, of course, with the consultancy on the how to approach it, because we did it.
If you could give three takeaways to our audience today of things that decision makers could really benefit from, what would they be?
Customers first. I mean, transformation is more to put the customer at the heart of the change. Technology is an enabler of the transformation. It doesn't need transformation itself. Last but not least, I think the most important thing is to change the culture of your company. Transformation and change is a matter of culture. So first change the company and then go to the market to provide digital services.
So there's a lot to do, but some very exciting times ahead for any organisation that does embrace all of this technology. And it's been great to get a really good insight into all of that. Riccardo Jelmini from DigitalGo, thank you very much, indeed.
Thank you. Thank you very much.