The digital economy dominates the world. Digital disruption has already happened and is now the reality. Digitization caused more business opportunities while presenting challenges for those clinging to traditional ways for Businesses Going Digital.
Businesses in different industries have found continuous growth while competition continues to rise over the past decades. Owners looking to maintain growth must start digital and modernize or continue declining.
Digital transformation is mandatory, but just having a digital product or going online won’t cut it. Many businesses, particularly in the high-growth industries like healthcare and transportation, believe that digital transformation can be done through some projects or product that replicates their business in the digital sphere. They often think of digital products as add-ons to their current service line instead of as a way to reimagine the entire business model.
Digital product adoption must be business-focused, involving company leadership, sales, marketing leaders, and tech directors. It’s an opportunity for innovation, not just a digital platform.
This approach to new product development can be difficult. Here’s a list of considerations that entrepreneurs and executives need to improve the chances of effective digital adoption:
Begin with mission and objectives
Start with the bigger picture – your company’s mission and how adding a digital product can further that mission? What business model elements can be affected by the new digital economy, and how can they be reimagined? How can digitization reinforce the business model’s successes?
Involve leaders from all over the company
Breakthrough innovations need a variety of perspectives. The digital product development process needs to include stakeholders from across an organization. Limiting the development process to the technology team can change the product into an add-on to the existing business, not an opportunity for evolution.
Businesses that utilize outside assistance have a greater chance of success. Partners that can collaborate their efforts can help companies start digital transformation the right way.
Differentiate your company through research and experience
Digital transformation through product development can only be accomplished if the result is adopted by customers and starts becoming a revenue source that will move your company forward. Even well-meant efforts to begin digital transformation can fail if your customers don’t embrace them.
You need to operate under the belief that your competitors are moving to start the digital transformation and are likely developing a product that can compete with yours. A simple, intuitive design could be why a user prefers your product over your competition. For instance, user experience was a huge factor that caused iPod’s obliteration of other MP3 players back in the 2000s. While the iPod had less storage capacity, it had better portability and had a simpler user interface than others.
Businesses of all sizes are offered a mandatory choice: maintain the status quo and be at risk of losing to competition or even start declining. Companies that accept this as a challenge understand that transformation is not just about developing a digital response or adding the word “innovation” to the marketing collateral. To start the digital transformation, you must rethink how your business engages with your customers, partners, and employees.