Digital transformation. What does it mean to you, to me and to the companies who use the term so openly? DR THOMAS OOSTHUIZEN, Global Consulting Director at Acceleration, shares his insight and experience on what the term may mean and should mean.
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 it’s 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, whilst 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 disruptors 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 are:
· 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.
Password managers don’t protect you from hackers
Using a password manager to protect yourself online? Research reveals serious weaknesses…
Top password manager products have fundamental flaws that expose the data they are designed to protect, rendering them no more secure than saving passwords in a text file, according to a new study by researchers at Independent Security Evaluators (ISE).
“100 percent of the products that ISE analyzed failed to provide the security to safeguard a user’s passwords as advertised,” says ISE CEO Stephen Bono. “Although password managers provide some utility for storing login/passwords and limit password reuse, these applications are a vulnerable target for the mass collection of this data through malicious hacking campaigns.”
In the new report titled “Under the Hood of Secrets Management,” ISE researchers revealed serious weaknesses with top password managers: 1Password, Dashlane, KeePass and LastPass. ISE examined the underlying functionality of these products on Windows 10 to understand how users’ secrets are stored even when the password manager is locked. More than 60 million individuals 93,000 businesses worldwide rely on password managers. Click here for a copy of the report.
Password managers are marketed as a solution to eliminate the security risks of storing passwords or secrets for applications and browsers in plain text documents. Having previously examined these and other password managers, ISE researchers expected an improved level of security standards preventing malicious credential extraction. Instead ISE found just the opposite.
Click here to read the findings from the report.
MWC: Next generation of inflight connectivity to be unveiled
Next week at Mobile World Congress, the Seamless Air Alliance will reveal progress on its mission towards enabling the next generation of inflight connectivity. This follows a significant start for the Alliance, which has seen membership increase five-fold since the first meeting in June of last year. The Alliance has a new research laboratory setup and continues progress through its three working groups, writing specifications for the technology, requirements, and operations.
These developments represent a huge leap towards the goal of making connectivity as easy and enjoyable in the skies as it is on the ground. Appearing as part of the Airbus stand (Hall 6, stand 6G34), the Seamless Air Alliance will reveal specification topics that have been completed and published to its membership.
“The passenger experience with inflight connectivity remains one of the great technology challenges. From Day One we have been determined to deliver on our mission to bring industries and technologies together to make the inflight internet experience simple to access and a delight to use,” said the Alliance’s Chief Executive Officer, Jack Mandala.
“I have been tremendously encouraged by the enthusiastic and committed response we have seen and the widening areas of expertise we can call upon as more and more companies and organisations continue to join us,” he added.
Announced during MWC 2018, the Seamless Air Alliance has since grown to twenty-three membercompanies with more than one-hundred key personnel from across the membership participating in its three working groups, with numbers continuing to increase.
The Seamless Air Alliance was created by founding members Airbus, Airtel, Delta Air Lines, OneWeb and Sprint, and quickly joined by Air France KLM, Aeromexico, and GOL Linhas Aereas Inteligentes and global technology leaders including Astronics, Collins Aerospace, Comtech, Cyient, iDirect, Inmarsat, Intelsat, Latecoere, Nokia, and Panasonic.
Today, the Alliance is pleased to announce five additional new members: Adaptive Channel, Etihad Airways, GlobalReach Technology, Safran, and SITAONAIR.
“We are extremely pleased to have these companies join and be a part of the companies driving the next generation of connectivity.” said Mr Mandala.
The Seamless Air Alliance will enable travelers boarding any flight, on any airline, anywhere in the world, to use their own devices to automatically connect to the Internet with no complicated login process nor paywall to scramble over.
The Alliance is also announcing the release of a new research study on the economic benefit of standardization on the inflight connectivity market at Mobile World Congress. This report is available for download at https://www.seamlessalliance.com/publications/
The Alliance is moving rapidly towards an expected demonstration of the technology later in 2019 and anticipates massive interest in Barcelona from the whole communications eco-system.