IDC Estimates that by 2020, business transactions on the internet - business-to-business and business-to-consumer – will reach 450 billion per day.
Initially, products and their sales were the basis for any company. But, gradually, the requirements changed and the focus shifted to customers and their requirements. The companies started emphasizing in serving the customers rather than selling their products blindly. As it is said, “Customer is the King”. However, the customers and their needs keep on changing as per the changing environment, and hence it became the prime need of the companies to change their services accordingly.
As it is the 21st century, the customers and their expectations are changing, and so are the companies, and henceforth the industries in effect. Now a day, every customer wants to avail customized services. The services that are specially tailored as per their requirements. But, will the traditional companies be able to cater to the unique needs of their customers if they do not adopt themselves as per the changing business environment? The answer is ‘NO’. Why? Why are the giants shifting their focus into being a software and digital firms instead of being the hard-core manufacturing or production companies?
As per the market pundits, Big Data and Data Science have allowed the companies to prosper the business using the raw data generated each second through theses applications. Each day millions of people use Uber app to book the cabs. Have you ever noticed each time you open, it suggests the probable destinations you want to travel to? Definitely, apps have simplified the process of target marketing, but without data science, it wouldn't have been possible.
Customization is a big reason behind it!
The reason is that the customers need to be addressed on their needs when they want. For that, the companies need to adopt the measures required for them to reach their target segment in minimum possible time. The companies were having employees, concept, products, but were lacking the digitization of their services. This could be possible only with the help of software.
Software has become one of the essential components of the companies. Customers now want 24x7 support in terms of service. Gone are the times when customers were satisfied only with the product. But, it is the after-sales service that matters to them now. In order to pay the required attention to each customer, the companies started adopting the ways that could help them reach their target market in minimum possible time. Starting from mobile devices and the company websites to the dedicated product software applications, the companies are bound to adopt all these measures in order to survive in the market.
Today’s cut-throat competition has forced the companies to focus on some of the important aspects such as Knowing them well, paying attention to their needs, staying in touch with them as per their terms and conditions. Most of the companies have already turned their focuses, and others will lose their target customers if they do not shift soon.
How Digitization is Changing Businesses?
A burning example of such kind of transformation is Amazon Kindle. Initially, customers used to like the hard-bound books and novels of their choice in the free time. For that, they had to visit the bookstore and search for the book they want to read. Maybe, sometimes it used to take weeks or months to find the latest novel by their favorite author. Thanks to the era of online shopping that the books are also available online for the readers to buy and get it in their hands within 7 working days. What if the customers do not want to wait that long and wish to read it now? Amazon Kindle took the initiative and launched a device dedicated to the readers to read books on it. Now the millions of books are just one touch away from the customers. The customers cannot only read the books whenever they want but can also save the time they used to spend searching for books. Amazon has not only discovered this device for the online readers but has developed applications for the customers to order products anytime, sitting anywhere.
Another example is the media and entertainment industry. Earlier, the viewers used to wait in front of their television sets for the daily soaps to be aired. Moreover, if by any chance, they missed their favorite show they had to wait for its repeat telecast to be broadcasted. However, the time has changed and the viewers are no longer available in front of their television sets as they hardly get time. But, the websites and applications of the television channels have made it possible for the customer to watch their shows whenever they want. In fact, now they can watch it as many times they want. This has not only increased the loyalty of customers but has increased the viewership exponentially. Even the youngsters who want to watch that same shot by the cricket legend Mahendra Singh Dhoni over and over again will just have to click on the video uploaded to the application. Not only the soaps and cricket, but the movies, as well as the English soaps, are also available at just a click. Some of the similar applications are Voot, Hotstar, Netflix, etc.
One of the important aspect, where every company is bound to focus is, its presence over the web. Whether it is a manufacturing company, software company, service-based firm, or an institution, it is compulsory for the companies to familiarize the world about its existence. This necessity has forced the firms to take the help of social media platforms to strengthen their base. Twitter, Facebook, LinkedIn, Instagram, are all the examples of those assisting forces that are helping the companies in not only retaining the customers but are helping them to advertise their success and requirements as well. If a company denies adapting to this change, then it will definitely be defeated in this fierce competition.
2.7 Zetabytes of data exist in the digital universe today.
The giant firms do not process the operations single-handedly, but distribute the tasks to small firms. These small firms which initially were focused towards the completion of tasks are now paving the ways for the giants to serve their customers in a better way by creating a channel driven by software technology that helps them communicate with each other smoothly. These channels are built through centralized platforms accessed by the clients in real-time making the processes smoother and easier.
Many of the companies are finding it hard to accept that software and digitization have crept swiftly into the industries and is changing the business environment rapidly. But, the companies will have to cope the difference in order to retain the old customers as well as to gain the new ones. The competition is getting stiffer day-by-day and hence it has become necessary for the companies to pay attention to the necessary aspects as soon as possible.
The firms that are turning itself into a software company are privileged over those firms that are lacking in digitizing themselves. If you look at your mobile phone, you will find out that starting from restaurants, grocery stores, salons, online shops and tourism to the conveyance providers have started targeting customers directly with the help of dedicated applications installed on the mobile handsets.
Also Read: The Technology Scene in 2017