After the baptism of the epidemic, digital transformation is no longer a new topic. In the past two years, a considerable number of enterprises have spontaneously carried out digital transformation and have paid a lot of energy. Although these companies have invested heavily, they have not achieved the desired results in digital transformation due to the lack of systematic learning and transformational thinking.
Today, based on my visits and research, I will summarize the pits to avoid in digital transformation.
Some time ago, I gave a lecture at Xuebao Home Furnishing Group in Zhuzhou, Hunan. Xuebao Home Furnishing is a home furnishing board, mainly selling zero-formaldehyde environmentally friendly boards. Since 2010, the company has positioned zero-formaldehyde boards as children’s rooms and children’s furniture boards. After 11 years, Xuebao Home Furnishing has developed 1,800 high-quality franchisee stores across the country.
After finishing the course, the executives of the company asked me, because of the epidemic, customers are not coming, which has caused their performance to drop a lot, and the dealers are a little nervous. What should I do next?
I gave them some advice and they found it especially helpful.
The 1,800 partners have served a lot of customers. At this time, due to the epidemic, customers cannot come to their door. These stores should make a return visit to all the old customers they have served. Their customers are either decoration companies, furniture dealers, or building materials wholesalers. Regardless of the category, these customers must have continued demand for sheet purchases. For enterprises at this stage, it is very necessary to re-establish contact with these old customers, introduce new product series to old customers, and revitalize them.
Who have these dealers served? Do they do detailed customer classification? What are the main types of plates purchased by these customers? For the Xuebao Home Furnishing team, if they don’t have these detailed data in their hands, they can’t help these dazed dealers to sort out such a system.
I give them two suggestions:
First, train dealers to take stock of the customers they have served. When the economic growth slows down, old customers are the little padded jackets for companies to survive the cold winter.
Second, a set of SCRM (social customer relationship management) system must be established to online and digitize the customer resources of these dealers, that is, to make in-depth labels on the customers of these dealers: What industry are they engaged in? When did you buy it? What did you buy? What is the customer’s main service object or product? What are their main categories? How is the price?
The second item of advice I gave them is actually to suggest that they start digital construction from the marketing side, and now they need to supplement the basic courses of digitalization.
See digital as a front-end monetization tool
As the saying goes, if you want to get rich, build roads first. The first step in a business’s digital transformation should start with marketing.
A good marketing system is the cornerstone for realizing digital transformation. When companies see that digitalization has brought business growth, they will have the motivation to carry out the next step of digital transformation in production and management. But it is such an “infrastructure” project, and there are actually many pits in it.
The idea of many companies to engage in digital marketing is still on building a website and opening an online store. Today, conscious companies have begun to do short video live broadcasts and bring goods. All these are digitalization as a front-end monetization tool.
I’m not saying this kind of thinking is bad, but as traffic becomes more and more expensive, these platforms have reached a mature stage today, entering the invoicing stage, the rules are getting stricter, the window of opportunity is getting smaller and smaller, and enterprises can use and replicate The methodology is getting less and less.
Where does your traffic come from? What is your conversion path? How to use platform rules to maximize traffic and operations? How to distinguish user requirements and pass them to the backend? Where are the users deposited? How does the chase continue? How to manage the online sales team? How to copy on a new platform?
In fact, these problems all need a set of system framework to solve. It is not simply to say that if I do it, I don’t care, or I think I understand it after one or two classes outside.
This kind of half-hearted transformation that only turns the “head” but not the “body” and “legs” can only make more detours and pay more tuition fees, which is far from the “business and financial integration” we want and “making decisions based on data”. “The goal.
To practice martial arts, it is necessary to practice not only body, shape, but also Qi, and it is far from enough to focus on the expansion of basic channels.
Today, we not only need to turn traffic into “reserved”, but also need to use user feedback and data behavior, which in turn affects the company’s products and value propositions. The front-end and back-end go hand in hand to break the data silos, and only then can we break the “Ren and Du two veins” of business growth.
Of course, many bosses have great ambitions and are willing to invest, but they ignore a very important question when they are vigorously transforming: how closely is the digital transformation of our business related to the actual business?
Transformation for transformation’s sake
The digital transformation of a business is the most intuitive, but it’s also easy to get lost in it. After my research, the reasons why many companies participate in digital transformation are: following the trend – the industry leader is doing it, and I can’t fall behind; competition – the competitors are doing it, and I will be left behind if I don’t do it; panic – the business enters The bottleneck period is even declining, and the dead horse becomes the living horse doctor.
Companies with these goals in mind, once engaged in digital transformation, lack sanity and patience.
Digital technology and network-wide marketing are not transformations for the sake of transformation, but systems and ways of thinking to achieve sustainable corporate growth and empower business transformation.
A particularly important point in entrepreneurship is the “unity of knowledge and action”. A person’s external behavior is dominated by internal consciousness. Only when you are sincere in doing good can you have external spontaneous good deeds.
Knowing is the beginning of action, and action is the end of knowing.
I have seen many digital transformation routes that external organizations have planned for enterprises, and the blueprints they describe are often particularly “grand”, which makes people feel excited, as if they will be able to rush into the world’s top 500 tomorrow.
But in fact, digital transformation must be based on a full analysis of its own business, and selective and precise strikes must be carried out. The transformation must be connected with the real business, and the transformation action should not exceed the company’s actual business and capabilities.
Otherwise, make a big pie and let you become the next ByteDance and create a platform. Of course you are happy now, but do you really have the ability to achieve it?
This is also a big hole to pay attention to in the transformation. All actions must be based on the actual business of the enterprise. At the same time, there must be a targeted, top-level design to avoid divide and conquer, and it is impossible to achieve resource sharing and form a joint force.
4 intervals, 4 responses
Of course, different industries are subject to different degrees of digital disruption, and different companies have different digital infrastructures. How do we make decisions about our digital transformation strategy based on our environment and situation? The following matrix can help us do some positioning
The lower left corner of the matrix represents that the industry has not yet ushered in the transformation of digital transformation, and the digital infrastructure of the enterprise itself is insufficient. In this case, companies need to find several key areas that can gain advantages from digital transformation, tap opportunities from external platforms, and gain relative competitive advantages in the industry.
The upper left corner of the matrix represents that the industry has been completely subverted by digital technology, but the enterprise itself lacks the necessary infrastructure construction. For example, today’s new energy vehicles are not just an engine change on the surface, but the digitalization of the overall driving control. In this case, it is very difficult to catch up with the industry by yourself, and you must rely on external forces. Use third-party platforms or technologies to focus on the most helpful transformation measures for business improvement, and make the entire business system online, just like our online SCRM system, which is a set of social marketing SaaS (software as a service) cloud services.
Through the use of social tools and platforms such as enterprise WeChat and WeChat, the communication efficiency between enterprises and customers can be improved, and the input-output ratio and effect of the entire network process of the enterprise can be calculated and monitored in real time. With these tools, managers can fully understand the progress of the business, the work status of employees, and internal resource coordination.
The upper right corner of the matrix represents that the industry has been subverted by digitalization, and the enterprise itself has a deep enough digital infrastructure construction. This kind of enterprise has no obvious shortcomings in digital operation, but it still needs to make breakthroughs in individual fields to widen the gap with its peers.
For example, Sephora, as the top brand in the beauty industry, has a strong store membership system and has accumulated membership itself. How did it transform? It established a SCRM system, opened up the underlying data, built an online membership system, and successfully transformed from a store economy to an online + offline private domain operation system. This is the leader’s strategy of “focusing on breakthroughs and expanding advantages”.
The lower right corner of the matrix represents the high level of the enterprise itself, but the digitalization of the industry is not high. This is a good thing, you have a first-mover advantage and become the industry leader. But the big brother is not easy to take the lead. If you want to lead, you have to cross the river by feeling the stones. This requires learning and understanding, knowing which areas are changing, and investing in the layout in advance, in order to sit firmly in the position of the big brother.
Finally, it is particularly emphasized that the strategy of an enterprise is, in the final analysis, people’s judgment on the industry, enterprise and business. It is also incorrect to talk about transformation and only talk about strategy and not people.
The founder of a company is the ceiling of a company and also represents the company’s culture and mission. The boss does not take the lead and expects the employees to push forward and do the transformation well, which is unrealistic in itself.
On the surface, digital transformation takes place in business and technology. In fact, the hardest and most important part of transformation is the corporate culture and corporate leaders.
When the company inevitably introduces new teams and adjusts the organizational structure, can the top leader stick to it? Can you empower the team in time? If it can, then it is possible for enterprises to realize the business growth brought by digital transformation.