Читать книгу Digital Transformation for Chiefs and Owners. Volume 1. Immersion - Джимшер Челидзе - Страница 7

Well, we’ve discussed a few details, but I guess a large number of people still have some questions about why the hell would I? What’s in it for me? Explain on your fingers!». Let me try.

1. Increased efficiency and productivity

How: reducing transaction losses by simplifying and optimizing operational tasks and processes, increasing productivity (including eliminating duplication of functions), eliminating intermediaries (effective value creation) reducing transaction costs for obtaining information and services, simplifying the organizational structure.

Example: It is estimated that every year companies with about 1,000 employees lose an average of $1 million just because of duplication of previous work.

2. Increasing the turnover rate

How: reduction of contract execution time (acceleration of the process of purchase of own goods, acceleration and simplification of documents circulation, procurement processes, deliveries), introduction of new products and services on the market, introduction of direct communication and reduction of communication time with customers and clients.

3. Realizing the potential of staff

Such as: reducing the operational burden on repetitive and simple operations, increasing flexibility for staff, including attracting the most talented staff, including from other regions; reducing staff turnover.

4. Improving the quality of management decisions and responsiveness to changes

As follows: use of transparent and structured data for analysis and assessment, acceleration of information acquisition and processing, reduction of industrial risks (early detection of threats).

5. Unlocking new opportunities and diversifying sources of income

As: creation of new products and services, business models, creation and development of new markets, both in understanding the new niche in the economy of the current market, and expansion to new territories.

For example, contrary to the traditional model of working with the most profitable customers, you can attract a large number of small customers.

That is, we cover the part of clients that was previously unprofitable to include in the work because of too high costs for their support. Together, they can make even more money than the major customers.

Changing the business model with digital transformation

Let me give you an example from consulting. A good consultant will cost expensive: from $ 150 to $ 500 per hour depending on the industry, direction, qualification and type of client (legal or natural person).

As a result, we get 2 main restrictions:

– for a consultant as an entrepreneur: he is limited in his earnings by his time;

– for customers: to get the effect, you need to hire an expensive specialist, and not everyone can afford it.

What if the consulting company created a digital advisor? Mathematically describe experiences and best practices, build relationships and simulate possible scenarios, then form a neural network and through deep learning gradually develop it (more about this in the next part). Then the system, based on input data, will generate recommendations.

After all, in fact, this is how consultants work. Only a few of them are able to combine different tools and deviate from the rules to achieve results. Additionally, this too can be taught to the system.

How much do you think it would cost to have access to such a system? Even if 20—40 dollars a month, it would still be a multiple reduction of the entrance threshold.

As a result, we get:

– The consulting company can multiply its cash income;

– The customer gets a modern tool for reasonable money. So now he can try the service, and if he likes it, use it as a working tool, and if he doesn’t, it’s still far cheaper than a live consultant.

This example shows how the classic consultant service changes to a digital product that benefits everyone: the company reaches more customers and the customers themselves reduce their costs.

Additionally, it turns out that one company can serve, let’s say, not five customers for $1 million a month, but five hundred for $20 million a month. Moreover, this is one of the key areas of digital economy development.