Business Management & Digital Innovation : The Definitive Guide

Advances in the area of technology have skyrocketed in this digital age. Digital business management is now a standard embraced by industries in order to survive the fast-growing changes in the world of commerce.

In this article, we outline:

  • 11 characteristics which make up a successful digital business model.
  • 7 ways to create digital business strategies to enhance business transformation
  • What are the benefits of learning digital business management?

If you are looking to revamp your business model to be in-line with companies that use big data and analytics to make their businesses more competitive - if not ahead of others – this article is for you.

Table of contents

Section 1: 11 Characteristics Of Successful Digital Business Models

  • Customer-Centric
  • Outcome-Focused
  • Open & Transparent
  • Collaborative
  • Customer Controlled
  • Economies of Scale
  • Low Latency to Real-Time Data Processing
  • Omni-Channel
  • Value Creation
  • Implementable Innovation Strategy
  • Value Delivery

Section 2: How to Create Digital Business Strategies In 7 ways

  • Set a clear vision for the digitization & digital innovation
  • Promote a digital culture within the business organization
  • Key Performance Indicators (KPI) must be clear to measure business success
  • Automate business processes
  • Embrace the concept of artificial intelligence (AI)
  • Implement “Center of Excellence” approach
  • Put data analytics at the heart of your company

Section 3: 9 Benefits of Learning Digital business management

  • Better customer service
  • Enhanced brand reputation
  • Streamlined operations
  • Increased sales conversion
  • High customer retention rate
  • Extended marketing campaign reach
  • Improved management decisions
  • Speedier service & product development
  • Drives creativity & innovation

Conclusion: What Business Management & Digital Innovation Mean For Your Business

11 Characteristics Of Successful Digital Business Models

1. Customer-Centric

Digital business & management guideIn the service industry, the phrase, “the customer is king” is often used. Now, in the digital age, this saying applies across all industries. The customer is primarily in mind during the creation, development or innovation of a product or service. Dedicated teams are assigned to research and analyze big data about customer wants so they can then be integrated in designing  products and services.

Time and resources are invested in data analysis to be able to give the kind of customer experience that the market is looking to pay for.

Practical Tip:

  • Subscribe to market research reports.

Start following market research reports and analysis in your specific area of business on a monthly or quarterly basis. From reviewing these reports, note the effectiveness of sales, quality of products, and services people are looking for, and identify opportunities to grow your customer base.

 

2. Outcome-Focused

Traditionally, organizations focused on how they should measure their outcomes rather than thinking about what outcomes they wanted to achieve and how they could go about achieving those outcomes. If measuring the outcome is the main focus of an organization, they lose sight of the potential to create lasting impact and become distracted into simply getting the job done.

Employees will be more empowered to think on their own creatively, as well as taking up more accountability because they know and understand the impact they can contribute. They are not “just doing their jobs” because that’s what  is expected of them. To be outcome-focused is also to be future-focused. It is finding out what will lead your business to success and working towards achieving that.

Practical Tip:

  • Create a gap and empower.

Start assigning tasks to your employees without instructing how to complete them. Just share where you currently stand, and clarify the results you are hoping to get. Let them use their knowledge and expertise to approach the task from their own angle.

How to Create Digital Business Strategies In 7 ways

1. Set a clear vision for the digitization & digital innovation.

Every organization has a vision of what they would like to achieve. As you lead your business to move towards digitization and digital innovation, the vision you set must come clearly across the organization. The vision should be trickled down from the top in a well-defined cohesive message that will be fully understood within your business so that the execution will be evident in the company’s culture, products and services.

Practical Tip:

  • Create clear & specific target objectives.

Run an executive management team meeting and set clear and specific target objectives. List the things that need to be achieved that are in line with the corporate vision for digital innovation. Allocate funds that will accomplish the specified target objectives and will improve the existing business. Communicate the target objectives and the corporate vision, empowering digitization to all employees across the business organization.

2. Promote a digital culture within the business organization

Promote a digital cultureDriving your business to digitization involves a cultural change within the organization. People will have to unlearn old processes that worked with the traditional business but will not fit the new digitized environment. Going paperless, for example, will not be an easy transition for someone who’s used to taking notes on every single plan of action.

 

Strict rules may have to be put in place in the beginning to ensure adherence to such changes until the practice becomes engrained in the organization. Day in and day out your employees will have to embrace the new culture towards becoming a digital business and this dedicated mindset will make your transition successful.

Practical Tip:

  • Invest in skills.

Create and conduct learning programs that will develop deep understanding and appreciation for digitalization. Programs can vary from simple digital awareness to teaching more specialized knowledge about digital innovation. Interpersonal skills as well as communication skills should also be taught in the learning and development program.

9 Benefits of Learning Digital business management

1.      Better customer service

Learning the science of digital business management will drive you to focus on making the customer a priority. This will enhance the experience of your customer base as your organization provides better customer service. The more superior your customer experience, the more your organization will be a top consumer choice. You will learn to design your digital applications and business processes to improve the overall satisfaction of the end users. Your internal customers (employees and shareholders) will also benefit from the enhanced customer service that will come as a result of your success in digital business management. 

 2.      Enhanced brand reputation

Executives who are equipped and educated on digital business management can enhance their company’s brand reputation as they are trained under a set standard and know how to properly package the company’s message.

As previously discussed, digital business management is customer-centric which is achieved because the correct digital management strategies are practiced in the organization where leaders have been formally trained. The enhanced customer experience provides a boost to your brand reputation as customers will freely endorse your company’s products and services. In today’s social media dominated society, good word of mouth such as online reviews and tweets will easily raise up your brand reputation above that of your competitors.

3.      Streamlined operations

Streamlined operationsAn organization whose leaders are educated in digital business management should have streamlined company processes. A practice emphasized in digital business management as discussed earlier is having a center of excellence team that looks into process optimization and continuous improvement of business processes.

 

Proper training across the organization on all relevant changes to foster digitization will create a streamlined culture from top to bottom. It aligns not just the processes, but everyone’s outlook towards the strategies that the business will entail to ensure that the organization’s vision is achieved. 

What Business Management & Digital innovation Mean For Your Business

Business Management conclusionBeing successful in the digital transformation of your business model is about more than just investing in the latest digital technologies or ensuring a presence on the worldwide web. More importantly, it requires a forward-thinking approach for the organization, from top to bottom. A digital culture should be created in order for the vision to be embedded in the entire organization.

All stakeholders should be ready to embrace the changes and business transformation that will be brought about by the lengthy and not so easy process of digital transformation.

Visit IMD.org to learn more about bringing your digital enterprise and corporate organization to the digital future and investigate their digital business management training programs.