The need for further digitization is justified, because digitization of processes enables better customer interactions, experiences and loyalty. However, “digitization” is a container concept and has everything to do with the use of digital technology. That can be anything: the cloud, Internet of Things (IoT), social media, robotization, big data, Business Process Management (BPM) and so on. But if we leave the underlying technologies for what they are, we get to the core of digitization: it is about improving business processes for better business productivity and customer experience.
Deployment of digitization
Process digitization enables organizations to better respond to the individual wishes of customers. Whereas the chain used to be supply-driven and every customer therefore received the same offer and the same customer experience, digitization enables us to finally start working in a demand-oriented and customer-oriented way. That is what we call ad-hoc customization.
Anyone who has ever ordered something from, for example, Amazon knows what that means. These webshops know your preferences and respond to them. They will keep you informed about the status of your transaction. And if you get into contact because you have experienced a problem, then everything is aimed at solving that problem. As a result, you get the impression that they - just like the former local grocery store - have only a few customers and they know them very well. But that is not true, they have millions of customers and, thanks to far-reaching digitization, have succeeded in giving them all that feeling of personal service. This is precisely where the added value lies.
The use of digitization goes further than making processes cheaper.
Of course, cost savings play a major role, as do productivity improvements and sales increases. But we all know those companies that rapidly digitize the most expensive and intensive processes and force the customer to use digital channels. Even if you, as a customer, would prefer to have contact in a different way. On the other hand, these institutions also have processes that you, as a customer, would like to handle completely digitally, but which then turn out to be impossible to do so. An example of this is the cancellation of a bank account, during which you must suddenly present yourself at a physical office, during working hours, to put down a signature in person.
Especially customer oriented
According to Digital Innovation, organizations that pursue this type of change have only partially understood what can be achieved with digitization. Organizing processes in such a way that you can optimally meet customer demand and fulfill customer expectations, is fundamentally different from supporting a process with IT. In a customer-focused process, you collect data in every step that you use to optimize the transaction and interaction, or case (in general or for that one customer). Moreover, a demand-driven process can be adjusted very quickly. This is necessary because customer wishes are constantly changing.
Of course, digitization also saves costs.
And that is great, because it makes it possible to respond to individual wishes cost-effectively. Cost savings are not a goal in itself, but a means to meet customer requirements better. After all, no customer wants to pay too much to be able to do business with you. Look at digitization through the eyes of the customer first. Do you wonder how you, by making maximum use of the opportunities offered by digitization, can better align your business processes with what your customers want? And you do not know exactly where to start? Then contact Digital Innovation to exchange ideas without obligation. Where are the opportunities and what are the pitfalls? Please contact Digital Innovation.
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