The music industry is forever changed – so is the film industry. Digital alternatives such as Spotify and Netflix paved the way and changed how we consume media. It’s a fact, but you’re probably sick and tired of hearing about it.
Digitalization is one of the hyped-up terms of the day. It shows up everywhere – and the examples of Spotify and Netflix are among the most common. The road to a conclusion is short: ”Digitalize or die!”
But in reality, it’s not that simple. It’s not self-evident that digitalizing your business would be profitable. And if it would, should development be conducted internally? In many organisations it’s a good idea to track and latch on to technical progress conducted elsewhere. You could profit from other’s technical developments, while pursuing aggressive improvements in other areas. Because you’re not just doing business the same way you’ve always done… Right?
Simplified, you could say that ”digitalization” is about either streamlining or reinvention. When it comes to streamlining, one shouldn’t mix up digitalization with ”digitization”. The latter is simply changing the medium without changing the process – e.g. replacing a paper form with a digital form.
An example of streamlining is to replace time consuming manual work processes with digital tools. Even seemingly small inefficiencies can add up quickly – a manual task that ”only” takes an hour a week, will consume 52 hours a year. If the task is performed by 10 people the cost is as much as 520 hours. Maybe that task could be fully automated?
Spotify and Netflix are examples of reinventions. Generally it carries a lot more risk – the graveyard of failed services is densely populated – but when it hits the bullseye it can be immensely profitable.
As tooling improves, several business activities will be automated, eliminated or streamlined. It’s in your best interest to make sure you benefit from the improvements, and reposition your offering. Customer service and advisory will become all the more important, as the practical work becomes easier and cheaper to perform.
Your business is at risk if you are easy to replace – if you’re a commodity. Relationships have always been important in business, and will continue to be. A great client relationship paired with a solid product or service is the only way to ensure loyal customers.
Your industry won’t change overnight – be vigilant of trends and new developments. Where can you latch on, develop or improve? What can you ignore?
Hi, I'm Christoffer Lejdborg! I believe software has tremendous potential to transform your business in amazing ways, but people are too focused on the technology instead of the business case.
I've worked with companies such as BDO, Grant Thornton, Nobina Technology, Run My Security and Whenever.
+46 70-218 17 24