Innovation Is The Key To Digitally Transform Financial Services
In a world where customers are becoming increasingly demanding, we need to find new ways of meeting their needs. The only way to do this is through innovation.
In this Business Ninjas podcast, our CEO, Hamid Akbari, talks about how Blanc Labs helps financial services organizations evolve their technology to meet new customer needs and make the most of market opportunities.
For more information on how Blanc Labs can help with digital transformation, get in touch.
Customer Centricity As The Essence Of Digital Transformation
by Abhijit Chakravarty
Digital Transformation may well be one of the most overused terms among the C-Suite, business consultants, and the industry overall. It is an axiom that increasingly falls in the category of being painfully cliché, but the fact of the matter is that the term isn’t about digital technology. It’s less to do with technology and more about organizational transformation and change management with human capital at its core.
The fourth industrial revolution is all things Meta with its blurring lines between the real and digital worlds. Characterized by augmented reality (AR) and virtual reality (VR), it has created a fundamental shift in the way we will conduct business. The power now is truly in the hands of the new-age customer, who decides when, where, and how they will transact.
While the “customer is king” moniker has always been around, thanks to new research, we are now able to see exactly which factors in a digital transformation correlate with being a financially successful company, and why indeed, companies should care about digital transformation.
A recent study by Deloitte found that more digitally mature companies see higher gainsin customer satisfaction, gross margin as well as long-term gains. With customers at the center of the digital transformation, more digital maturity can lead to better net revenue and net profit margin, as seen in the graphic below:
Why is this? The answer is that digitally mature companies can add value for their customers. Deloitte identified seven digital pivots, listed below, which successful organizations made, with customers at their center. As a result, they were more agile when it came to responding to customer demands (products and services), improving customer relations (being culturally relevant and bringing diversity and inclusion), or enhancing customer experience (seamless transition between mobile and in-person experience and 24/7 support). These successful enterprises were also able to adapt their business model and boost innovation.
Pivot 1: Flexible, secure infrastructure
Pivot 2: Data Mastery
Pivot 3: Digitally savvy, open talent networks
Pivot 4: Ecosystem engagement
Pivot 5: Intelligent workflows
Pivot 6: Unified Customer Experience
Pivot 7: Business model adaptability
The business and financial impact of a digital transformation centered around the customer is not lost on the C-suite either. Companies with higher digital maturity see benefits across cost reduction, increased sales, and better customer lifetime value. According to this report by KPMG, as many as 67% of CEOs agree that the agility provided by digital transformation is “the new currency of business; if we’re too slow, we will be bankrupt.”
Digital transformation’s real purpose is about empowering the server (business) and the served (customer). In coming years, we will see businesses re-imagining, growing, and transforming themselves by placing the digitally empowered demi-gods, a.k.a the customer, at the epicenter. The alternative, unfortunately, is worse.
At Blanc Labs, we understand that every organization’s needs are different. This is why we offer advisory and consulting services to understand your unique issues and get you started with your digital transformation journey. Book a discovery call with us to learn more.
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