For many established companies, swimming in the digital waters seems like a risky proposition as many of them still remain uncharted. After decades of experience in analog business, they may be reluctant or unwilling to make the leap. However, as the generation who grew up in the digital world grows older and enters the workforce, they feel perfectly at home using, buying from, and even starting their own digital-only companies. And what’s more, they’ve come to expect the sort of service, and approach which only a digital company can deliver. We’ve truly entered an age of “sink or swim” when it comes to digital business transformation.
Many organizations tout the claim that they are making strides towards digitalization. They point to websites, apps, and marketing which “prove” that they are keeping up with the time times, but in fact, the core of their business remains unchanged. Their reluctance, and slow pace, create ample opportunity for new upstarts to come in and dominate areas which have long been the strongholds of juggernauts.
Uber and AirBnB are good examples of this. They are fully digitalized companies which have come out of seemingly thin air in the past few years to make entire industries tremble in their boots. Established taxi services did everything they could to try to halt the progress of Uber, and in the end, they’ve started trying to mimic them. Now you can order a standard taxi via an app, much the same way you would for an Uber, however there is basically no difference between ordering a taxi via your smartphone or just calling the company and ordering one directly as people have been doing for decades. This surface change hasn’t affected the taxi companies’ ability to compete with Uber’s massive, agile fleet of freelance drivers, or with their low prices.
A truly digital company has many benefits over their analog-entrenched competition. Specifically in the areas of:
Customers are the core of any business model, and companies who deliver what they want succeed. Digitalization makes it easier to find this demand, create the products they want, and deliver them to the customers faster than ever. Through high quality 3D renderings, as well as technology such as 3D printing, and virtual and augmented reality, customers can preview, try out, and even hold new product concepts before they’re ever manufactured. Product engineers can develop, test, and rework products before an expensive physical model is ever made, and companies can pull underperforming products off the shelves faster without having sunk large amounts of money into failed concepts.
Say a company wants to introduce a product with a number of options and styles. By 3D rendering these options and allowing customers to pick and choose the ones they want, they can quickly find which options appeal to their customers which ones don’t, all without having to manufacture a large number of unwanted items. They can then pull the lowest performing options easily, with few losses.
Through this same process, digital companies can quickly and easily add new products or expand existing product lines to meet customer demand. With high quality 3D renderings, a company can conceive, test, and market a new product or options without having to invest a lot of money in the process. Say a phone manufacturer wants to add new colors and textures to their existing phone models. They can now have these options available to their customers in a fraction of the time and for a fraction of the price that it would have taken just a few years ago.
It goes without saying that the process of taking a new product to market is faster, and more efficient through digitalization. However, what’s not so apparent are the massive amounts of data which can now be used to pinpoint exactly who and where your customers are, and how they are using your products. Using this data, you can now custom tailor your products to certain customer segments, and offer them exactly what they need when, and where they need it. Before, it would have been cost prohibitive to research, develop, design, test, and tweak a whole new product for a smaller niche, but digitalization not only makes this feasible, it can be quite lucrative.
Digitalization opens up the door to a whole new world of possibility. Now that the barriers of bringing a new product to market are so much lower, companies are now free to experiment and try out concepts which would have been deemed too risky in the past. While this innovation can sometimes be a bust, it can also quite often lead to entire new revenue streams and help companies find new directions to explore. Back in the day, only large corporations with very deep pockets had this opportunity available to them. But now, the digital revolution is putting smaller companies at the forefront of innovation, and some very exciting things are coming out of it.
No matter where you are now, it’s not too late to jump start your digitalization. What this means is different for every company as no two businesses are exactly alike. However, RenderThat specializes in helping companies like yours implement digital strategies which will help you stay in the game for many years to come. If you’re ready to embrace the future of business, contact RenderThat now.