In the wake of Microsoft Envision, we’ve been having a lot of conversations surrounding digital transformation. But whether you’re considering shifting your product lineup to focus more on services or you’ve set your sights on developing Internet of Things (IoT) functionality, there’s one concept you’re likely going to have to embrace: your business model is going to change.
“Everyone can get the tech, but refining [your] business model is the secret to success. We’re in a post sale, on demand, attention economy[…] you’ve got to continuously engage in the customer, you’ve got to change the way to transform your engagement experience…”
These are the words of Ray Wang, Principal Analyst & CEO of Constellation Research, a man who’s been researching digital transformation longer than many traditional businesses even knew it existed. He’s even written a book on it. So when Mr Wang says it’s time to take a hard look at your business model, it just might be a good idea to take notice.
As an example of the sort of restructuring he’s talking about, Wang puts forward the concept of a shower fixture company looking to increase their market share. By taking a look at the customer data surrounding the hotel chains they’re courting, this product-based company notices that many of the hotel’s complaints are due to water pressure issues. They then approach the hotel chain with the offer of free, worldwide water pressure monitoring, included when they sign a new service contract.
It’s this sort of data-driven, relationship-centric sales model that Mr Wang sees leading the charge as businesses in every sector begin the process of digital transformation. For more insights, and the full version of the water pressure story, check out our full interview with Ray Wang.
- For more on implementing IOT solutions, check out Gartner’s Predicts 2016: Rising to the Challenge of Building IoT solutions.