Today, the digital transformation moves the SMEs. What are the challenges you face in your projects?
Basically there are three problem situations that occur individually or in combination:
First, “the blind digitalization”: Unfortunately, companies often digitalize hectically and haphazardly. In many cases, the customer is forgotten. The digital outsourcing of tasks to the customer, for example, is out of place for a good customer experience, depending on the positioning. You should always think carefully about where you want to digitize and where you deliberately leave room for personal interaction. Digital Transformation builds on digitization, but goes a significant step further. It is about developing new business opportunities and models that are only made possible by digitization. Companies find it difficult to transfer this change to their business models – they lack the experience.
Secondly, “the increased proliferation of systems”: Through “blind digitalization”, companies have accumulated digital isolated applications that are poorly integrated. This usually leads to a less than convincing customer experience. In addition, a lack of system integration must be compensated for by manual work. The consequences are risks in data protection (e.g. GDPR/DSGVO) and high financial expenses
Third, “the lack of efficiency in digital communication”: The automation of core processes with ERP, SCM and CRM systems has progressed. Although content marketing is omnipresent, the “proliferation of systems” is particularly noticeable here. Companies also invest a lot of money in content creation and are not very successful afterwards. They forget about measures in the activation and distribution of content in order to achieve a much greater reach and thus reach more potential and existing customers.
What does hectic, planless digitization mean? How does this manifest itself?
Decision-makers today hear buzzwords like “digitization” and “agility”. Especially in SMEs the fear of missing the train is increasing and the pressure is growing. At the same time, SMEs are bombarded by software providers and agencies. In the hectic rush, they quickly invest in one technology or another and justify this as an agile approach. The first question to be asked is how the company can use all the new technical possibilities to redesign the customer experience in order to increase the company’s success.
That means more planning in advance?
Investments in digitization can certainly be compared to building a house or a city. Take the simpler example of house construction. There, I first consider what purpose I want to fulfill and what kind of living experience I want to create. An architect draws up plans according to which the house is then built. From experience I find a different picture with companies. From the outside, it looks as if you would simply have building materials delivered for the “digital house construction” and then build “agile” without any big plans. This might work for a doghouse from the hardware store, but for a residential building this is not promising. For “digitalization” we at yawave apply the agile methodology out of conviction. This in order to be able to make adjustments from direct learning experiences as early as possible and to offer clients a much higher flexibility. We highly appreciate the focus and effectiveness of this method. Priority is given to the clarification with the client, which are the strategic objectives and the requirements.
Planning work costs money. Are companies willing to pay for it?
In fact, the willingness to pay for planning work in the field of digitization is limited. Overtaxing and short-term thinking on the part of decision-makers are usually the reasons for this. Poor planning leads to a multiple increase in follow-up costs. Our customers especially appreciate the sustainable cost efficiency through solid planning.
You mentioned that one must also leave room for personal, non-digital interaction. What do you mean by that?
If you first think about the future customer experience, then non-digital interactions are also part of it. With increasing digitalization and artificial intelligence, the high-quality human contact point will even gain in importance – we at yawave are convinced of that. However, these contact points must be specifically selected and supported with digital instruments.
How should one understand this?
An example: With the advent of online bookstores 20 years ago, it was assumed that all bookstores would gradually disappear. The fact is that a large part of them have indeed disappeared, but there are still bookstores where I can experience a whole new “customer experience” today. I can browse through books over a coffee, get competent information, get inspired – all made possible by digital systems in the background.
You mentioned the proliferation of systems. Isn’t that just a reality that you have to live with today?
Only conditionally. On the one hand, it is clear that system diversity cannot be prevented. You need systems that have their particular strengths in individual business areas. Such system landscapes grow over time in companies. However, this should follow a clear plan, a strategy or an enterprise architecture. Every customer-oriented company must first ask itself this question: What is my market raison d’être? How do I position myself? Who is my customer and which segments do I serve? The answers to these questions bring clarity about the requirements of the system landscape. To become more efficient, I also analyze those process flows that have a high transaction volume. If these still exist after the realization of the “new customer experience”, I digitize.
You mentioned inefficient digital communication or the lack of activation and distribution of content as a third challenge, what do you mean?
We experience this problem again and again. Content marketing is gaining in importance. Up to now, however, investments have mainly been made in the production of content. Especially small and medium-sized companies still have difficulties in delivering this content to a larger audience. Often one puts expensive produced content on the website and is just happy that it is there. But especially SMEs have a huge network they could use. In addition, many contact points with customers are insufficiently used for greater reach. By the way, this is a problem that we address uniquely with our yawave software.
Finally, do you have three tips for a successful digital transformation?
First, thinking from the customer’s perspective and defining the target customer experience. Secondly, to define, prioritize and plan requirements clearly. Third, do.
