Digitalization are Just a Step Up To Growth

A lot of text and speech have been generated from  the business opportunities of the Internet of Things, IoT, the Industrial Internet and Big Data, and how companies can create competitive, competitive products and services. Similarly, the use of digital methods and tools for sales and marketingis constantly expanding. But this is not enough. It was pointed out, among others, numerous digitalisation take advantage of companies, on which I have worked: the latest new export markets – even if, for example, digital channels and social media would be widely used – does not create enough growth and profitability, if related with customers and clients thinking is a past world. The best spring loose stance leaves lacking something more streamlined flight of the arrow.
This is focused on customer business in a B2B business when it imports or is bringing new products or services that use digitalisation to the market. It allows companies to identify and fix openings in their current model to export digital products or services to the market.

Utilizing digitalization is essential

Strengthening competition and globalization make the utilization of digitalisation in future businesses virtually necessary. Perhaps only companies that rely on cost leadership, simple products or services, can avoid it. The underlying of digitalisation is the idea of ​​improving the company’s competitiveness, which could be realized in the following ways:

  • The customer gets more information about the use of the product or service, which helps to better develop the value created for customers
  • Based on business data, it is easier to segment your customers, which will help in targeting your marketing and sales activities
  • More developed customer relationships are developed by utilizing a continuous relationship with customers based on the use of a product or service
  • Opportunities for differentiation are increasing: offering customization (by software), providing value-added services
  • The ability to move from product competition to system or system systems competition

But the business benefits of digitized products and services are often unsuccessful: revenue and profitability do not grow as expected, access to new markets or segments, or the business benefits of renewing a business image are not redeemed. In the client interface, these are concretized, inter alia:

  • After the first deals, increasing sales and marketing efforts do not yield enough results
  • A very large part of the trades are clinging along the way, the customer does not make a purchase decision
  • The profitability of new stores and accounts is not satisfactory

The whole potential of the new product or service will remain untapped – often the development project will even be condemned as a waste investment. But with the understanding of the causes of the problems, there are also stuffed drugs. For these reasons, we will have the next.

New products change purchasing behavior
New products and services utilizing the internet are from the buyer’s point of view quite different from those traditionally used. It is a completely different matter to acquire, in the production process, a set of devices, software, and services that are self-monitoring, controllable and optimizing for their environment, rather than a single device. Getting a digitized product and service to a customer means a huge leap, a shift from familiar and safe to a new, uncharted world. For example:

  • Lack of experience and know-how about the ways in which a new solution is needed
  • Personnel change resistance is often extensive
  • Assessing and verifying the benefits and risks of the investment is difficult
This leads to an increase in the complexity and duration of procurement processes. More and more customer interest groups have a say in saying: management wants to be more involved in decision making, IT expertise and views are needed in all digital solutions, the developers of the business must be committed to a new approach,
For the seller above, the buyer has to move to a new, dignified solution to make a great mental and functional change. This change is demanding even if the seller is already a familiar and safe supplier. And it is even more challenging when the change is drumming a new player. That is to say, a well-established business with an already established market is moving into a new business that must be able to overcome the gap between the first buyers and the mass market (Chasm) described by Geoffrey Moore , see below.
All new enthusiastic pioneers and visionaries are the ones for whom selling novelty is the easiest. They have a clear view of how a new product or service improves their business; there are also know-how, cooperation networks and the desire to go through the necessary changes in the buyer’s business practices, values ​​and culture. On the other hand, these buyers run for technical excellence and new arrivals, so it is worth taking advantage of the demand soon, competitive advantages may not be long-lived.
From the extensive personal experience I can say, the success with the forerunners is too often the victory of Pyrrhos:
  • The forerunners’ clear vision of using the novelty makes the seller believe that sales and marketing based on the emphasis on their features and benefits are effective
  • The seller interprets the market through pioneering technically-motivated aspirations, as a result of competing features, which is especially attractive for software-based products and services

But with the forerunners, the winning way does not lead to results in the mass market. Riding with features closes their eyes essential: potential customers do not see the need to change their current mode of operation, or they think the current mode of operation is excellent. If only one fifth of the potential customers of the forerunners are really achievable, it is difficult to realize the dreams of growth. Of course, internationalization of the number of potential customers will increase considerably, but even in those fields, only a small part of the machine’s power can be extracted.

It is difficult for new products to pass through the purchasing process

The change required by the new digitalization product or service also explains why selling novelty often – or in most cases – leads to deals: most of the potential customers still do not recognize or consider the need for a new solution to offer the drug. In other words, the need of the customer is only latent, or if it is known, they are not in the process of doing something, see the picture below. Here is a long and rocky way for customers to get active, compare all possible options, not to mention the most suitable choice of preferred solutions.

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