1. What is Digital transformation?

- It’s a wide transformation process that embraces the whole

organization. This transformation engages all processes and employees
and it’s built on a different strategic vision about how the organization
itself should act and react with a radical shift in the mindset of the
employees.
- Digitalization isn’t about changing how you do business, or creating
new types of businesses. It’s about keeping on keeping on, but faster
and better now that your data is instantly accessible and not trapped in
a file cabinet somewhere in a dusty archive. Think of customer service,
whether in retail, field ops, or a call center. Digitalization changed
service forever by making customer records easily and quickly
retrievable via computer. The basic methodology of customer service
didn’t change, but the process of fielding an inquiry, looking up the
relevant data, and offering a resolution became much more efficient
when searching paper ledgers was replaced by entering a few
keystrokes on a computer screen or mobile device.
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- Digitization gave Netflix the ability not only to stream video content
directly to customers but also to gain unprecedented insight into
viewing habits and preferences. It uses that data to inform everything
from the design of its user experience to the development of first-run
shows and movies at in-house studios. That’s digital transformation in
action: taking advantage of available technologies to inform how a
business runs.
- Apparently, while increasing "capillarity" using online marketplaces
can expand a brand's sales channel and revenue, it has proved to be a
double-edged sword. When sold through online marketplaces, brands
do not have access to customer preference data and are pushed to
discount to increase sales volume. These forces commoditize their
brands and drive down their profit margin. Brands need a direct
relationship with their customers to understand what they really care
about and sell them the premium experience and products that generate
better profit.
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- database of customer contact
- A CRM system should be more than just a static database of customer
contacts. The CRM should ingest the multichannel interactions that
businesses are having with consumers. The offer engine or e-commerce
website should be integrated in real time with the wealth of data that
the business has about its customers. That means systems that support
inventory, marketing, sales and customer service all have to integrate
with systems handling other business domains. This is the digital
transformation that brands need.
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