Digital Transformation –
A buzz well justified
Digital Transformation –
A buzz well justified
09.07.2016 | Ursula Breckner | English text by Faiza Bouzenoune
Reading Time 3’
The digital revolution continues to generate buzz while questioning companies’ existing infrastructures and dictating the need for change.
A large number of German companies openly acknowledge the high impact digitalization is starting to have on their business today. However, they claim missing a meaningful strategy to successfully turn this knowledge into action within their organizations. To fully apprehend the scope of the structural changes required and be fully equipped to cope with them, digital transformation needs to be understood for what it is: a fundamental paradigm shift in everything we do. „You have to assume everything being said on the topic of digitalization is debatable! “, states Michael Buck, CEO at Convidera GmbH, strategy consulting firm specialized in Digital Transformation and Content Marketing. In this article, they enlighten decision-makers on the key fundamentals of this phenomenon.
A networked and connected world
„The journey truly starts with comprehending the notion of networked economy in the digital age and adapting one’s operating models, structures and competences to this extensively connected world“, says Michael Buck. The networked economy is just starting to make sense to people. However, digitally-connected people have been part of the picture for over a decade and expect some fundamental changes in the overall corporate communication approach.
Digial transformation creates a fundamental paradigm shift in everything we do.
The old communication model – the change trigger
Back to 2010, the communication flow between the sender (the company) and the receiver (the consumer) was fairly manageable. The company would develop and promote products over the classic communication platforms. A monolog that hardly triggered a response from the recipient, in this case a client or a consumer. The opportunity to provide feedback to the sender was rather limited. The relevance and the quality of brand campaigns would often be extensively analyzed to evaluate impact and potential success. In most cases, the assessment would come too late in the process and the campaign would barely catch consumers’ interest. „While digital communication can be measured at click level and in real-time, this becomes a guessing exercise on traditional channels”, continues Convidera CEO.
Today’s communication dynamic: everybody can issue and receive information anytime, everywhere
Internet has simply and radically invalidated the communication rules we have known for the past decade. Classic media such as TV or radio remain indeed relevant communication vehicles; however, whenever potential customers are exposed to new information today, they have the option and the power to comment, recommend or even issue a warning by using Facebook, Twitter, YouTube or the numerous review sites available for that purpose. As a matter of fact, even the lack of reaction to a particular brand message is a clear signal that the communication approach needs immediate attention.
Brands that ignore digital transformation will no longer be relevant.
This opportunity to feed companies with inputs and impressions in real-time happens across the whole value chain, whether it links to a product, a service or a company as an employer. The communication is slowly but surely shifting from an assumption-based monolog to a transparent, engaging, and measurable dialog, amplifying along the way the amount of available information.
The need for change: a must for businesses
This is the time for companies to take a stand. By now, as business leaders, you should be questioning the state and the relevance of your corporate communication strategy. Are you still heavily relying on traditional communication channels or have you fully understood und embraced the importance of social listening and engagement? Have you aligned the infrastructure of your company with today’s communication reality? And if yes, do you have the capabilities to make sense of the data overload stemming from the net and turn it into valuable insights?
„Companies who ignore this basic understanding will no longer be relevant. It is as simple as that! The digital networked society in which we live has fundamentally redefined the notion of customer and market centricity – billions of data can now be collected, assessed, and made available to decision-makers along the value chain in real-time. This enables decisions that are much closer to the reality of the market. The development of a digital infrastructure, the fostering of a listening culture, and an effective stakeholder management approach are key prerequisites for championing digital transformation success. The concept of value chain will evolve to become an integrated value network.“