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As highlighted by Altimeter in the report « The state of Digital Transformation », « Digital transformation is maturing into an enterprise-wide movement. Digital transformation is modernizing how companies work and compete and helping them effectively adapt and grow in an evolving digital economy. »
Meanwhile new technologies have progressed, customers’ demands and needs have significantly evolved over the recent years: customers now ask for more services, transparency and individualization.
These trends deeply impact all sectors and markets and the way multinational companies do business. They need to adapt their initiatives to thrive in such an ever-changing environment. To address digital revolution challenges and meet customers expectations, developing new revenue-producing business concepts faster than the competition is needed.
How to deploy, thanks to technology, a new business model in a short time-to-market to reach success?
1. Digital technology expansion and new consumers’ individualization expectations
As we have pointed out, a technology expansion has been noted over the past ten years. Flipping every sector on its head, digital technology gives multinational companies the possibility to offer innovative services in a very short time.
Moreover, with the development of the Internet, users’ expectations and consumption patterns have changed. We are now in a new era of individualization. Consumers want to go further and have a direct access to individualized services with high added value.
Faced with this demand for premium customer experience and ultimate personalization, multinational companies are now able, thanks to digital technology, to offer scalable individualization services and to provide perfect experience.
Addressing customers’ new expectations and accelerating its digital transformation has become a necessity for any company wishing to succeed in a short time-to-market. How to do so?
2. A pragmatic approach to deploy a new business model in a short time-to-market
Through our own experience, business success is about making its digital transformation in a pragmatic way: starting with identified business successes thanks to digital technology and then extending them at scale quickly to transform the whole company.
To achieve this strategic objective and address the 3 phases of a successful business strategy – research, go to market and industrialization – appropriate methodology and tools are needed: Make ideas emerge, discover their potential, persevere in testing them and then industrialize, in that order and not the opposite, thanks to technology.
Let us focus on the rollout phase. To deploy a new business model in a short time-to-market and move faster than the competition, here is the way to success:
- Budget the deployment phase from the beginning of your business initiative
- Set up appropriate governance and engage teams
- Define and respect a precise roadmap
- Use digital technology as an enabler to be scalable and deploy your business model worldwide in no time
- Animate your business initiative after its rollout. Deployment is a continuous improvement process and needs follow-up animation to reach business success.
- How to animate a business initiative to avoid the stalling effect and reach business success?6 March 2019
- How to deploy business initiatives at scale in a short time-to-market to achieve its business objectives?4 March 2019
- How to enable a short time-to-market to be successful?1 March 2019
- How to deploy a new business model in a short time-to-market to reach success?22 February 2019
- How to monitor brand positioning and product performance online to reach business success?20 February 2019
3. Success story of digital transformation
Aware that making bigger investments in digital transformation is the way to success, some multinational companies have built culture of innovation to quickly reach their objectives. Let us highlight the true story of a pet food specialist which has successfully implemented a whole new B2B2C business model to meet consumers’ expectations and set appart from its competitors.
In a continuous innovation loop, this pet food specialist wanted to go even further by offering its clients the ability to enjoy personalized products for their pets. With this goal in mind, they launched a new business initiative: a platform to customize the nutritional composition of cats and dogs’ food in a tight time-to-market and a complex environment.
Implement a whole new B2B2C prescription-based business model, activate 5 markets in 6 months and then deploy the model in 20+ markets globally have generated big challenges for this pet food specialist. Time-to-market is critical to move faster than the competition. This multinational company has been looking after an innovative solution to go along with the existing corporate IT solutions.
To deploy a new business model in a short time-to-market, this pet food specialist used the powerful lever of technology and a pragmatic approach to make individualization accessible in a complex environment:
- Phase 1: a first success in a short time-to-market with a limited number of combinations. The solution was delivered in 5 months in 3 countries.
- Phase 2: a number of possible combinations over a larger perimeter. The solution was deployed in 15 countries in less than a year.
- Phase 3: a very extensive individualization to potentially cover all individual needs. The solution is today deployed in 27 countries worldwide.
Here are the ingredients for success:
- A customized solution allowing to orchestrate a complex system in order to associate roll-out rapidity and flexibility and trigger a much valuable cycle of “Test and Learn”.
- A smart governance and an ability to integrate and reuse applicative bricks designed in other business units.
- A “commando” team benefiting from a trusting environment, to let bloom their potential.
Thanks to a digital solution meeting its specific business model, this pet food company succeeded in creating superior value:
- An ability to meet challenging time-to-market deadlines
- A dynamic governance of project scope to deliver the highest business impact features in a new and unknown space for this pet food company
- A capability to integrate with the company ERP and logistics organization
- A large scale activation thanks to a scalable architecture
Technology allowed this pet food company to deliver significant business outcomes:
- Over 1 million combinations to cover all individuals needs
- A sales increase of 13% of products with veterinarians as soon as the solution was implemented
- A project deployed worldwide and which has become the basis for the development of this pet food specialist’ services
- A huge marketing impact with major partners of this group
- Maintaining a premium positioning and protecting its distribution network with unique services.
They can now move forward and reach their 2025 target: €750 million in revenue generated by services, whereas they achieved 100% of their revenue from products.
To sum up, to thrive in an evolving digital environment and meet consumers’ new expectations in terms of individualization, multinational companies need to adapt and deploy new business models in no time.
To do so, using digital technology and a pragmatic approach – step by step – leads to success. Deploying a new business model in a short time-to-market requires budgetization, an appropriate governance, a dedicated team, a digital solution allowing fast and scalable rollout and business animation.