Grow your revenue with digital transformation powered by mobile
Digital transformation uses the power of technologies such as mobile, cloud and cognitive to change the way organizations operate. It is often misinterpreted as too complex, requiring the complete reinvention of a company, or too simple, requiring only digitizing documents or data. On the contrary, digital transformation is about an innovation or change in any part or parts of the business model. That might mean using digital for new offerings, shifting routes to market or changing product development.
Weaving digital into the fabric of the business
Why bother with digital transformation? A recent PricewaterhouseCoopers study of senior executives found there are three main reasons companies invest in digital transformation:
- To grow revenue (45 percent)
- To create better customer experiences (25 percent)
- To increase profits (12 percent)
It’s no surprise that revenue growth tops the list. The growth imperative is real and urgent as the business cycle ages and growth headwinds increase. In three of the four quarters preceding Q1 2016, S&P 500 revenue declined year to year and the single quarter with growth was only up slightly at 1.27 percent year to year, according to CSIMarket.com.
Savvy executives are making the business of IT the business of the company — they are weaving digital into the fabric of their businesses. For example, The Wall Street Journal reports that recently hired CIOs at Eli Lilly and MasterCard were non-IT business executives. The CEO of Target says his CIO is “very involved with strategy planning,” according to The Wall Street Journal. The CIO of Delta Air Lines joins the CEO and the senior leadership team every week to talk about business trends and technology. All these situations underscore an increasingly important business reality: Greater collaboration between IT and business will accelerate digital transformation.
The results of digital transformation can be seen every day. A technician arrives at a job with a tablet for scheduling, accessing a product manual or ordering parts. Teams collaborate globally on projects. Businesses find ways to monetize their data — for example, aircraft manufacturers can use their extensive data about maintenance requirements to sell predictive analytics to their customers, or a mobile telecommunications partner may sell insights about browsing behavior to marketers looking to improve their targeting.
The power of mobile
The perfect confluence of mobile, cloud and cognitive technologies is powering digital transformation. Mobile technology is leading the way, as there’s a massive opportunity in the global market of 3.4 billion smartphone subscribers. Between now and 2018, mobile enterprise apps will quadruple, according to the International Data Corporation (IDC). The combination of mobile and cognitive will be powerful — the IDC predicts 60 percent of mobile device interactions will be passive, as users accept information surfaced from intelligent systems and machine learning.
Three innovative companies are using mobile technology to increase revenue:
- DPD: Accelerating growth in delivery services
DPD is one of the UK’s leading time-sensitive parcel delivery companies. It faces strong competition in its home market, so it uses mobile technology as a competitive advantage. Your DPD enables retail customers to follow their packages in real time on their smartphones to a 15-minute delivery window. Customers simply provide their mobile phone number when they make their purchase. They also have the option of changing the delivery to suit their needs — options include delivering to a neighbor, to a pickup location or to a safe place. This technology has increased DPD’s market share by enabling greater repeat purchases among customers of DPD’s retail clients.
- FIMC: Adding value in financial services
Financial Insurance Management Co. (FIMC) offers home, auto and travel insurance products through financial institutions. Mobility enables its customers to connect with FIMC more efficiently. For example, according to PointSource, the FIMC Home + Auto app creates customer loyalty and higher renewals with mobile-specific features and targeted offerings. The app provides mobile access to services such as roadside assistance, and savings and promotions are provided exclusively to Home + Auto customers. FIMC says the solution is a differentiator for attracting new customers and adds value for their existing customers.
- Thomas Pink: Finding the perfect fit for high-end retail
Thomas Pink, a leading global luxury clothing brand, sells through retail stores and e-commerce. The retailer is known for the fit and finish of its clothing, so it’s essential to get the fit right, even in the virtual world. The company deployed a fit recommendation tool using technology from Fits Me, and it allows customers to ensure they get a perfect fit based on their body shape and preferences. The technology is integrated with Thomas Pink’s existing analytics systems, and the company reports that 44 percent of its customers would not have bought a product if the improved search and discovery were not available.
Create your own opportunities to grow revenue with digital transformation powered by mobile.