Journey to the Digital Service-Enabled Enterprise
As digital technologies transform every industry, organizations understand that they must embrace digital innovation to create and sustain competitive advantage.
From banks and insurers to manufacturers and healthcare providers, companies see the benefits of going digital, and they see their customers expecting the kinds of services that digital technologies can help to provide.
A Service-Enabled Enterprise in Four Stages
The challenge, of course, is that many of these companies are heavily invested in previous generations of IT, and their applications are running on older platforms, older systems and older networks. Plus, getting to digital isn’t simply about adopting new technology components — software, devices or some other clever technology. It’s about embracing an entirely new business model that allows real-time collaboration among all parties within new business ecosystems.
Any modernization strategy has to take all this into account. CSC has developed a four-stage, trimodal approach to building a service-enabled digital enterprise that reduces complexity and cost, while enabling a more agile infrastructure and modern applications. Our trimodal, or three-track, approach will:
• Accelerate your digital transformation
• Create new business value through deft use of digital innovation
• Exploit changing market and business opportunities through continuous delivery
• Increase business insights and consumer experiences by mining data and information with advanced analytics
Stage 1: The Digital Vision
A digital vision can deliver the agility a business needs to align with rapidly shifting market trends and expectations, so as to meet the needs of ever-more savvy and demanding customers. There are two primary considerations in establishing a digital
• Becoming more effective through business model reinvention, enabled by the “create the ecosystem” track
• Becoming more efficient through business process optimization, enabled by the “select the platform” track and “connect the legacy” track
Create the Ecosystem through Business Model Reinvention
Businesses traditionally have used a provider-to-consumer (push) model, in which IT helps the business deliver its goods and services. In this model, IT includes systems of record (Enterprise Resource Planning [ERP] systems), transaction-processing facilities (e.g., mainframe banking software and custom applications to implement specific functions) and user interfaces. The value of IT has been measured in terms of its ability to satisfy the specific needs of the business — not necessarily the needs of the customer.
In the digital era, the proliferation of mobile devices and cloud-based consumer apps has changed the focus of IT from the business to the consumer. Products and services are now valued by new measures of customer reaction and satisfaction, such as the ease of a transaction, personalization of services or ability to track the shipment progress of recent purchases.
It’s no wonder, then, that IT systems originally designed to meet the needs of the business are ill-prepared to meet the entirely new requirements of the digital consumer. In the mobile-enabled digital era, traditional business models are no longer seen to be as relevant as they once were, and consumers are much more ready to switch to newer digital providers. Business effectiveness now demands that companies deliver the right value at the right time at the right price to ensure a wonderful user experience. In the digital era, this is the only way to create and retain customer loyalty.
To deliver the experiences digital consumers demand, organizations must reinvent their business model, joining a broader collaborative ecosystem of providers that are connected through a modern platform extending well beyond simple traditional IT platforms.
Amazon Marketplace sellers serve as an example of an ecosystem-based digital business model. While often maintaining their own websites, Marketplace sellers use the Amazon platform and supply chain processes to offer the same products and services. For a fee, these ecosystem members connect to a wide, loyal Amazon customer base. They gain integrated access to credit card companies and PayPal, as well as shippers, independent product reviews, and more. These features enable them to offer a better customer experience than they could deliver alone.
Creating or operating within such an ecosystem requires an integration-first strategy, which we’ll discuss later.
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