• Subscribe to our newsletter
The Media Online
  • Home
  • MOST Awards
  • News
    • Awards
    • Media Mecca
  • Print
    • Newspapers
    • Magazines
    • Publishing
  • Broadcasting
    • TV
    • Radio
    • Cinema
    • Video
  • Digital
    • Mobile
    • Online
  • Agencies
    • Advertising
    • Media agency
    • Public Relations
  • OOH
    • Events
  • Research & Education
    • Research
    • Media Education
      • Media Mentor
  • Press Office
    • Press Office
    • TMO.Live Blog
    • Events
    • Jobs
No Result
View All Result
  • Home
  • MOST Awards
  • News
    • Awards
    • Media Mecca
  • Print
    • Newspapers
    • Magazines
    • Publishing
  • Broadcasting
    • TV
    • Radio
    • Cinema
    • Video
  • Digital
    • Mobile
    • Online
  • Agencies
    • Advertising
    • Media agency
    • Public Relations
  • OOH
    • Events
  • Research & Education
    • Research
    • Media Education
      • Media Mentor
  • Press Office
    • Press Office
    • TMO.Live Blog
    • Events
    • Jobs
No Result
View All Result
The Media Online
No Result
View All Result
Home Agencies

Cutting through the digital transformation hype and jargon

by Thomas Oosthuizen
March 29, 2016
in Agencies
0 0
0
Cutting through the digital transformation hype and jargon
Share on FacebookShare on Twitter

Words… words … words … When I speak to clients, I hear many different interpretations of what “digital transformation” is, illustrating that the term confuses as often as it clarifies.

Some believe that digital transformation is simply a matter of using digital channels to sell and service clients more effectively, more efficiently and in a more personalised manner.

A significant number think it is about a new application or digital marketing initiative. Many regard it as a matter of using technology to drive business process innovation. And others say that their goal is nothing less than to be the Uber of insurance or the Airbnb of banking.

Digital transformation has come to mean all of these things and more.

But when a term becomes shorthand for so many perspectives, it loses much of its usefulness. If we are not clear about the definition of digital transformation when we discuss it in boardrooms, how do we create a meaningful strategy for the future? And how do we align our organisations behind our vision?

Definition impacts strategy and the level of its conversation, so it matters

What is clear from my discussions with large brands is that C-suite executives know that their industry, business environment, and customers are evolving, and that their brands and organisations also need to adapt.

What they often do not know is how to bring about the changes that will help their companies to be profitable, sustainable and competitive in an era of disruptive change (yes, disruption has also become an overused and misunderstood term).

The reality is that most companies are reluctant to disrupt their own industries, often because they fear cannibalising their customer base or eroding their own margins. Hence, most choose to tweak some aspects of their business with digital technologies rather than to transform their business models in a fundamental manner.

Many scholars like Clayton Christensen suggest that a new business, outside of the current business, is often the best way to have the best of two worlds. It means a company can become more consumer centric by using data and technology well in its current business, while also experimenting with more disruptive options enabled by technology.

For example, they may change how they understand and engage with consumers with the aid of digital tools and channels. This is an imperative and no longer up for debate. Unless this is done, nothing else is possible. This is an approach that has the advantage of being realistic and manageable to implement. But is it enough for a large brand to keep the competitive high ground in today’s fast-changing consumer environment?

After all, consumers judge their experiences with all industries they deal with by the benchmarks the digital disrupters have set. Why should interactions with an airline or bank not be as easy and personal as dealing with Amazon? These are the big questions customers are asking – brands should be ready to answer.

Asking the right questions

We recommend that executives begin by discussing their business’s context, challenges and customers so that they can have a clear view of how digital competitors, technologies, and consumer behaviour will affect their brands in the years to come. This exercise is about clarifying language so the organisation can build a digital strategy based on a shared understanding of its challenges and desired outcomes.

The broad questions senior managers should be asking: 

·         How exactly is digital technology changing the way our customers behave and the way that existing, emerging and potential competitors do business?

·         What are the best companies across industries doing across the spectrum of digital enablement? What can we learn from them about the future of our industry and our business?

·         How should we change our business to defend and extend market share, grow profits and ensure relevance as digital technology evolves in the years to come?

An interesting point to note here is that the real nature of digital disruption for an established industry isn’t always obvious. Think, for example about Uber, which may have a dramatic impact beyond the taxi industry in the years to come. By making personal transport an affordable service commodity, it could eat away at the edges of the car and auto insurance industries.

Brands therefore must understand how consumers behave rather than simply looking at direct competition. Remaining relevant is not simply a matter of creating an app or smartening up their website, but finding ways to use customer data to create more meaningful and relevant customer experiences at every touch point. It is notable that consumers often do not have finite industry boundaries.

Beyond the obvious

By looking closely at competitors and the technology landscape, executives can see how emerging technologies and disruptive rivals could attack their market share. They can then create the strategies necessary to protect their market share and possibly identify ways to expand into new markets using digital technology.

The next step is how to do it, and the answer won’t be the same for every business. Some businesses will have visionary leadership, agile processes, innovative cultures, young workforces with digital skills, and modern technology platforms, so they’ll be able to embrace digital transformation more wholeheartedly.

Others may be encumbered by conservative leadership, legacy technology, regulation, siloed processes, and their workforces. They’ll need to look at their assets – data, customers, skills and channels – and find ways to put them to work in a digital world. In some cases, they might need to launch new brands, form joint ventures or innovation groups to fast-track their digital programmes.

In either instance, what really matters is that the business stays close to consumers, keeps its eye on new technologies, and keeps building new products and experiences that meet consumers’ evolving needs. There is no excuse not to become more consumer centric – for that to happen, data and insights are the starting points – and how marketing technology can support exceptional customer experiences. In the very least, this will enable a strong defensive against disrupters, even if it won’t protect a brand indefinitely.

So ultimately, underpinning the organisation’s ability to meet these goals is its ability to gather, organise and analyse customer data.

Dr Thomas Oosthuizen is global consulting director at Acceleration

Tags: consumer insightsconsumer-centriccustomer experiencedatadigital jargondigital skillsdigital transformationmarketing technologyuser experience

Thomas Oosthuizen

With over 30 years of experience Thomas Oosthuizen is a marketing and brand strategy expert working with many global leaders in their field. His core strength is as a business-thought leader translating business strategy into marketing and marketing communications strategies and deliverables. Oosthuizen’s experience spans starting out in marketing management, marketing director roles and then chairman for a marketing and communications agency, before setting himself up as an independent marketing and brand specialist. Thomas helps businesses understand where they need to focus and what to do to retain, grow and acquire profitable customers. He has worked across 23 countries, many of them in emerging markets with their unique challenges. Thomas joined Acceleration in August 2014 and helps clients across the globe to grow their businesses and achieve their strategic objectives. Thomas holds a PhD in Integrated Marketing Communications and has been a judge on many marketing industry award panels. He is also the author of The Brand Book: how to launch a profitable brand fast, efficiently and effectively (Jacana Publishers)

Follow Us

  • twitter
  • threads
  • Trending
  • Comments
  • Latest
Kelders van Geheime: The characters are here

Kelders van Geheime: The characters are here

March 22, 2024
Dissecting the LSM 7-10 market

Dissecting the LSM 7-10 market

May 17, 2023
Keri Miller sets the record straight after being axed from ECR

Keri Miller sets the record straight after being axed from ECR

April 23, 2023
Getting to know the ES SEMs 8-10 (Part 1)

Getting to know the ES SEMs 8-10 (Part 1)

February 22, 2018
Sowetan proves that sex still sells

Sowetan proves that sex still sells

105
It’s black. It’s beautiful. It’s ours.

Exclusive: Haffajee draws a line in the sand over racism

98
The Property Magazine and Media Nova go supernova

The Property Magazine and Media Nova go supernova

44
Warrant of arrest authorised for Media Nova’s Vaughan

Warrant of arrest authorised for Media Nova’s Vaughan

41
AI in sponsorship: Beyond the buzzword

AI in sponsorship: Beyond the buzzword

May 9, 2025
Upping the ante: Tracking the year-on-year growth of gambling in SA

Upping the ante: Tracking the year-on-year growth of gambling in SA

May 9, 2025
Seven Days on Social Media: Tonya’s in hospital, the nation’s in chaos and SA doesn’t care about Joshlin

Seven Days on Social Media: Tonya’s in hospital, the nation’s in chaos and SA doesn’t care about Joshlin

May 9, 2025
Social media platforms are replacing Google

Social media platforms are replacing Google

May 8, 2025

Recent News

AI in sponsorship: Beyond the buzzword

AI in sponsorship: Beyond the buzzword

May 9, 2025
Upping the ante: Tracking the year-on-year growth of gambling in SA

Upping the ante: Tracking the year-on-year growth of gambling in SA

May 9, 2025
Seven Days on Social Media: Tonya’s in hospital, the nation’s in chaos and SA doesn’t care about Joshlin

Seven Days on Social Media: Tonya’s in hospital, the nation’s in chaos and SA doesn’t care about Joshlin

May 9, 2025
Social media platforms are replacing Google

Social media platforms are replacing Google

May 8, 2025

ABOUT US

The Media Online is the definitive online point of reference for South Africa’s media industry offering relevant, focused and topical news on the media sector. We deliver up-to-date industry insights, guest columns, case studies, content from local and global contributors, news, views and interviews on a daily basis as well as providing an online home for The Media magazine’s content, which is posted on a monthly basis.

Follow Us

  • twitter
  • threads

ARENA HOLDING

Editor: Glenda Nevill
glenda.nevill@cybersmart.co.za
Sales and Advertising:
Tarin-Lee Watts
wattst@arena.africa
Download our rate card

OUR NETWORK

TimesLIVE
Sunday Times
SowetanLIVE
BusinessLIVE
Business Day
Financial Mail
HeraldLIVE
DispatchLIVE
Wanted Online
SA Home Owner
Business Media MAGS
Arena Events

NEWSLETTER SUBSCRIPTION

 
Subscribe
  • About
  • Advertise
  • Privacy & Policy
  • Contact

Copyright © 2015 - 2023 The Media Online. All rights reserved. Part of Arena Holdings (Pty) Ltd

No Result
View All Result
  • Home
  • MOST Awards
  • News
    • Awards
    • Media Mecca
  • Print
    • Newspapers
    • Magazines
    • Publishing
  • Broadcasting
    • TV
    • Radio
    • Cinema
    • Video
  • Digital
    • Mobile
    • Online
  • Agencies
    • Advertising
    • Media agency
    • Public Relations
  • OOH
    • Events
  • Research & Education
    • Research
    • Media Education
      • Media Mentor
  • Press Office
    • Press Office
    • TMO.Live Blog
    • Events
    • Jobs

Copyright © 2015 - 2023 The Media Online. All rights reserved. Part of Arena Holdings (Pty) Ltd

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist

Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?