11 Feb 6 scenarios to avoid for a successful digital transformation
Due to the globalization and advances in technology, over recent years many companies have opted for digital transformation, thus adapting their products or services to customer needs, or updating their business model.
What are business models? Business models can be described as the set of activities and processes that are generated to deliver or create value for customers based on their needs in order to generate greater profits.
What are the indicators that you should review your business model?
Sometimes it is difficult to know if a company needs to change its business model. Here are a series of situations that indicate that your organization needs to review its current model and initiate change:
1. You get lower return on investment (ROI)
The return on investment, that is, the economic value generated as a result of the implementation of different actions, is not as expected and the returns lower. In this case, reducing expenses is practically the only way to achieve profitability objectives.
2. You have lost contact with customers
This happens when customers demand new forms of digital contact that the organization does not offer. It is true that recovering customer satisfaction is a complicated task, but it is easier to know what to offer them and how to improve communication with them if we first think about how they act, what devices they use and how they communicate in their daily lives or with other companies.
3. You have lost business perspective
The market has changed to such an extent that what the company does seems increasingly irrelevant. There are many organizations that have remained anchored in the past with the first business model they put in place, even losing the usefulness of the service or product they offer.
4. Irruption of new competitors
More players participate in the market, interrupting the value chain and changing the basis of competition. This forces us to improve the entire business chain from beginning to end, from the relationship with employees, customer service and monitoring to the characteristics and usability of the products or services offered.
5. Excess of ambition
Excessive ambition in organizations comes when they set growth objectives that are not achievable with traditional products and services. An aspect that can jeopardize the integrity of the company since it can lead to a very low return on investment.
Complacency is thinking that the current business model works well and there are no immediate threats. Idealizing your company and its as-is business model will not bring you long-term benefits, because as time progresses, your clients will demand your product or service be adapted to the changing needs and you will not be prepared.
In a constantly evolving world, we cannot believe that a single business model will work forever. Anticipating changes and knowing the keys to business digital transformation will generate the ideal opportunity to stand out from the competition, offer differentiated services and make your company a benchmark in its sector. Therefore, if you really want your organization to continue growing, it is very important that you reflect, analyze your situation, and realign your business model.