Digitalization is on everyone’s lips, the speed is increasing and it is increasingly difficult for entrepreneurs to react to the increasing change. Digital companies can be much faster in the market, which means that you can no longer keep up. If a competitor is faster, for example, in the delivery speed, you can quickly lose your position in the market, previously thought to be safe. Nowadays, companies are increasingly considering how to compete with digitization 4.0. Here we would like to show what is important to pay attention.
I have an online shop
Just recently, a customer said to us, “I’m already digitizing 4.0, because I have an online shop!” It is a serious deception to assume that this is already done. Digitization 4.0 means digitizing the entire company. There are three pillars to take into consideration here: the organization, the processes and the product or service. Only those who examine and reconstruct these three areas with regard to digitization have the opportunity to meet the requirements of the future. What does that mean in detail?
Digitize the organization model
As a rule, companies are structured top-down – one leads and all put under what is given. From a digital point of view, it is not the boss who rules, but the employees – especially those with customer contact – who are equipped with wide-ranging competencies: they can make their own decisions in a timely manner. Information is kept transparently digital, there is a constant contact with the customer and thus an increased perception of customer needs. Of course, this procedure is integrated into a monitoring process, so that everyone is involved, and therefore also the management, can see where the development is heading.
Digitize business processes.
Today, it does not matter anymore how old a company is, digital companies are changing rules. With that, they depend on their competitors. It does not help to establish a department that is responsible for digitization – the entire entity “enterprise” needs to be rebuilt. This means that information flows are kept transparent, the hierarchies are flat. Decisions can be made by the individual employee or within a team. In addition, information is processed and distributed software-supported.
Change product or service
The product is not in the foreground;instead you work with experiences and results. A product is no longer durable, but it gets more opportunities that can all be used. The need of the customer is covered modularly and the customer only pays for what he uses. A good example of the day to day life is car sharing: You pay only for the period in which you use a vehicle without having to buy the vehicle, with all running costs.
There is a lot of digital competition in the market, which many companies are not used to and from which they feel a little overtaken. Some of these competitors come from abroad and were not even present in the minds of many medium-sized companies. Suddenly they are a competitor in the market. That’s a big danger from an unusual direction.
What can companies do against this competition?
Those who want to arm themselves against the strong competition of many new digital ideas should, on the one hand, change their business model and provide their customers with both experience and results and offer them added value. With this new direction, it is quite possible to leave many competitors behind. Thus, there are also opportunities. Further, the product or service should be changed very quickly according to the needs of the customer. For example, designing a product or service in modules allows you to quickly swap out a module to make the whole system more customer-friendly in the end.
A cycle that accelerates itself
If something goes wrong in the product or service, it means rebuilding your organization. Reorganizing the organization will transform the business model, which in turn will translate into an improved product or service. This autonomous cycle thus accelerates itself and can thus be seen as a permanent and independent bottleneck-focused strategy. Bottlenecks occur automatically. Now it is time to start processes that eliminate bottlenecks. This is basically the core of a modern enterprise – independent in the person and independent of the structure.
Digitization transforms jobs
Often we hear the fear of employees that digitization certainly ensures that jobs are lost. Jobs are already lost, but new ones are being created elsewhere. Jobs are transformed in digitization.
To the point:
Where the customer has to be picked up digitally, many companies are still struggling. But digitization will come more and more. Everyone has to be prepared for it and go through its three pillars and look at what could be made more modern. Employees have to become co-thinkers, which of course will not be possible overnight, but there are often unimagined possibilities. And think of everything you do: customer value is the focus!