Digital Technology: A Simple Decision or Detailed Analysis?
Digital business today is not a matter of choice, but a necessity that can, but does not necessarily guarantee the survival of a business. The process of digital transformation must be rounded off with clear goals that are to be achieved and that lead to the final realization of sales, or if we turn things around, we define goals that, if not met, ultimately result in no sales.
The process of digital business is not just about investing in digital solutions in the hope that, for example, a webshop, website, mobile application, etc., will automatically bring additional sales or replace a part of the existing workforce.
It can also happen that there is a completely opposite and undesirable effect. Sales may decline, and the use of new digital solutions may require additional hiring and additional costs.
What do we want to achieve by introducing digital technology?
If it is about a technological solution that should bring us business optimization through savings, the decision-making process about the desired technology is quite simple. We will list all current costs and simulate future costs after the introduction of new technology.
If we want to achieve higher revenues (and who doesn’t xD), the process of deciding on the technology, its implementation, and preparing the entire organization is much more complicated and challenging.
Example – Introducing an e-commerce solution into the business
Let’s take as an example the introduction of a webshop solution into a company that has so far been engaged in retail at a physical location.
The logic of the company’s management suggests that the mere introduction of an online store will increase the company’s turnover. Expectations are usually high because they are accompanied by the narrative that appears in the media and business community that e-commerce is growing year by year, and often double-digit growth rates are mentioned year after year.
After developing an e-commerce solution, the company, following the initial euphoria, quickly faces reality. The time invested in managing the e-commerce platform increases, the revenue generated from the sales channel does not cover the costs, not to mention the fixed investments in the production of the online shop.
After developing an e-commerce solution, the company, following the initial euphoria, quickly faces reality. The time invested in managing the e-commerce platform increases, the revenue generated from the sales channel does not cover the costs, not to mention the fixed investments in the production of the online shop.
The consequence of such an approach is that the company will, through “learning by doing,” along with constant frustration and expenditure of resources over a long period, arrive at the right business formula. This is unless, during this time, they decide that e-commerce is not for them and exit that segment of the business.
Dwizards Business Consultations
At Dwizards, we offer business consultation services for clients who want to achieve maximum results from their digital business.
Through interviews with the client, we learn about the specifics of the industry, the method of presenting and marketing products, get to know the organization and their competencies, and adopt knowledge about the current technologies that the client uses…
We become part of the team. We bring our knowledge and experience from various business areas combined with the best global practices to help the client achieve their goals more quickly through adequate management!
