Times are changing, and companies have learned this firsthand since the start of the COVID-19 pandemic. The virus has made it clear that digitalization is a decisive factor for competitiveness. For example, while Amazon continues to expand its leading position, many traditional companies are suddenly fighting for survival.
As a result, the pace of digitalization has increased dramatically. Many companies are responding with various digitalization initiatives, including process automation, enhanced customer interfaces, and launching new digital products, services, or business models. When done properly, the digital transformation can drive growth and thus offer a way out of the crisis. However, if the foundations of any major project – namely the development of a strategic approach supported by management – are neglected, there is the real risk of this potential success factor becoming a bone of contention within the company.
Three Levels for Successful Digitization
Due to a lack of coordination, individual projects branch out in several directions instead of coming together, resulting in constant discussions, a lack of focus and motivation, plus poor communication both internally and externally. If the step into the digital era is to be crowned with success, digitization projects must take place on three levels: the strategic level, in the business model, and in the digital operating model.
Level 1: The Strategic Level
Let’s do this, and off we go – this is often the approach. But comprehensive changes require a strategic first step, despite all the drive to act.
An in-depth analysis is essential here, including questions such as:
- Where are the weak points?
- Which areas have potential?
- What are my goals?
- Should internal processes and costs be optimized or are we focusing on consolidating or increasing turnover?
- Can existing platforms and systems be used or is investment necessary?
All of these questions and more have to be answered right at the outset. Only then can visions be developed and concrete goals defined.
“If the step into the digital era is to be crowned with success, digitization projects must take place on three levels: the strategic level, in the business model, and in the digital operating model.”
Dr. Boris Ricken
Head of Manufacturing, AWK Group AG
The goals are then implemented on the second level – the business model. This focuses on achieving added value through the use of digital technologies, such as digital products, services or sales channels deployed in the developed strategy. The customer and their needs must always take center stage here.
Level 3: The Digital Operating Model
The third level is the digital operating model, which relates to providing the necessary means for the future success of the project in practice. The required know-how and infrastructure are established on this level. Digitalization platforms have been a common sight here for some time now. If followed proactively and on several levels, companies can use these platforms to access new markets and customers while also reducing costs.
The significant advantages of these platforms include their scalability, global reach, networking effect and specific customer benefits as a result of comprehensive data analysis. Establishing a digitalization platform thus often has a positive impact on the business model and corporate strategy, and ensures that all levels are closely linked together. Only then can companies increase their efficiency and effectiveness in implementing the digital transformation and generate long-term added value as a result.
This guest commentary was provided by AWK, Switzerland’s leading IT consultants.
As an independent Swiss company, the AWK Group advises its customers on the implementation of IT resources and ensures that even the most demanding projects are brought to an optimal conclusion. This is demonstrated by over 4,000 successfully completed projects in a wide range of branches. You can find more information at https://www.awk.ch/.
