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The five facets of digital transformation

Zafirah Salim | Feb. 22, 2016
IDC has developed a framework called the Digital Transformation MaturityScape to help business and IT leaders understand and cope with the challenges and opportunities of DX.

The end goal here is to deliver great customer experience, and in order to achieve this, companies are working towards blending the physical and online experiences. Citing an example of online retailer Zalora, Jimenez said: "The company understood consumers' pain point of not being able to physically feel and touch a product when shopping online. As such, they established a pop-up store which allows customers to try on the products before making the purchase online. It's all about providing a seamless experience across different touch points."

In short, business leaders need to deliver customer experience innovation that alters market expectations to excel in this area.

3. Information transformation - Besides omni-experience, this is the second area that sees a lot of business investments. "This dimension focuses on leveraging key data assets in the way we manage, collect and analyse data in order to improve competitive advantage," said Jimenez. 

"This area should be seen as a business area instead of a technology area because information is critical to an organisation. In fact, every single constituent in an organisation leverages data to improve or enhance the business operations," he added.

However, businesses need to be wary of what data they are entitled to tap on, cautioned Jimenez. CXOs need to rely on guidance from governance institutions as to what they can use, how they can use it, and what they can resell. In Singapore for instance, businesses should adhere to the Personal Data Protection Act (PDPA). Failure to do so will cause businesses to risk losing their customers, he warned.

Delving deeper into this, Jimenez noted that a lot of data is currently being collected, but not analysed. This gap shows that data are not fully harnessed to better understand the customers, which can actually help to improve decision-making to better serve customer needs.

4. Operating model transformation - According to Jimenez, this dimension looks at transforming business operating models to adopt new digital revenue streams. Companies need to improve their business operations in order to make their business more adaptable to changes, and more agile by using connected devices, people and things.

For instance, Yihaodian, a food e-commerce retailer in China, has developed a mobile app that uses augmented reality (AR) to allow customers to shop in their virtual grocery stores anywhere. Through the app, users can shop for 'food' that can be scanned with the phone to be added to a virtual shopping basket, and have the goods conveniently delivered to their homes at the tap of a button.

"This development changes the business operating model and at the same time, improves their customer experience by blending the physical and online experience. Yihaodian has successfully disrupted the market by leveraging AR to create a new operating model for buying groceries," said Jimenez.

 

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