Some experts say that to embark on digital transformation, a company must first look at and understand where their industry is right now and then try to identify their challenges and opportunities. I guess as with any journey, we have to start with recognizing where we are and then plan towards reaching our destination with the right balance of strategy and execution.
In healthcare, for instance, the principle “Build it and they will come” doesn’t necessarily work. Process and workflow changes must accompany the adoption of new technology, as physicians are painfully finding out with the adoption of EHRs.
Today, we’re seeing a wave of healthcare enterprises that are pushing for digital transformation. Whether it’s about being data-driven or perhaps transforming silos into integrated care delivery models — we’ll be witnessing a strong push for healthcare digital transformation. Recent study points out that the global market for healthcare IT is expected to reach USD 103 billion by 2020. It is important to note that the “rapid penetration rates of the Internet” has brought to the growth of healthcare IT across the world.
One key finding suggests that: “Asia Pacific is expected to be the fastest growing regional market over the next six years. Its market is expected to reach USD 16.4 billion in 2020, growing at a CAGR of 17.0% from 2014 to 2020.” Whether it’s because in totality we may have the bigger population or Asia Pacific region is experiencing the highest growth digitally, I would love to find out more.
Defining (or re-defining) one’s customer value proposition in today’s digital era is perhaps the next step — on the path to digital transformation.
Banks, such as ANZ bank, have an ongoing rivalry with the other major banks for technological superiority [Source]
Quoting the article: ANZ Bank’s chief technology officer says banks have become obsessed with chasing the hype of big data, social media and mobility. “There’s certainly a level to which you can use these methods to sell more, but are you going to please the client by just being social media or big data-obsessed and not being clever?” Patrick Maes said.
So, ‘how do we see ourselves potentially playing in this (re-defined) value proposition?’ is a question companies should be able to address.
A look into the banking and finance industry shows increased momentum with big data and analytics. Commonwealth Bank has revealed plans to use “real-time analytics” to suggest products to customers during banking, while Suncorp similarly is planning to consolidate data held by each of its subsidiaries to determine how many unique customers it has and potential on-sell strategies.
Finally, but not the least, is the digital transformation of the retail and consumer sector value chain. Here we witness the rise of omni-channel buying, growth of payment services and platforms, retail entertainment (touch screen kiosks), improved customer loyalty programs, mobile commerce, virtual shopping, and the list goes on.
Retailers that’re pushing the envelope:
- Barneys New York. Barneys realized sales gains with the digital transformation of its store experience. It has been reported that, ‘during the transformation, the retailer rolled out mobile point-of-sale on tablets and iPod touches as well as “the River”, a digital table top in the café that allows customers to place orders, shop and blog while relaxing.’ Barneys has seen a 10.9% increase in items per transaction, a 14.3% increase in dollars per transaction and a 12.5% increase in productivity, according to Artie Byrne, director of financial and store systems for Barneys New York. [Source]
- Aeropostale. Aeropostale has invested in social media, crowd sourcing, and product optimization in order to transform its brand. Read more.
There’s a great deal of opportunity in the retail industry in the Philippines, especially now with us having more buying power and wanting more control — means retailers have got to re-model their strategies to serve these digitally-empowered consumers.
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