There are many compelling reasons to embark on the journey of digital transformation. This week Discerning Digital MD Richard Lucas take a look at perhaps the most important reason of all - growing reveune from digital.
"Gaining new customers, improving existing customer loyalty, updating systems to become leaner and faster and keeping up with digitally-savvy competitors are the most common reasons. Perhaps your aspirations are loftier and you wish to create or disrupt a market, using digital innovation.
"Whatever your motivation, the reality is that embedding digital at the heart of your business is an investment, and one which must contribute to growth.
Growing your business with digital
‘Breaking Through the Digital Ceiling’
"Accenture’s latest report examines this important issue - growing revenues from digital.
"The research reveals that business leaders are ambitious when it comes to digital, with 60% of executive respondents stating they viewed digital as an important way to open up new revenue streams.
"That said, 70% of these respondents revealed that just 15% of their current total revenue comes from digital, what Accenture calls the ‘digital ceiling’.
"This is a dynamic I have seen with our clients - a gap between their aspirations for digital and their current digital standpoint.
Accenture - 'Breaking the Digital Ceiling'
Two Steps to Growing Your Revenues from Digital
"If you want digital to become a reliable revenue stream, there are two key considerations I advise you to start with.
1. ‘Become Digital, Don’t ‘Do’ Digital
"I’ve encountered many business owners who speak of their keenness to start ‘doing’ digital.
‘Bolting on’ digital tools and services in a piecemeal fashion won’t help you break through your digital ceiling.
"The reality is that digital can only deliver results when factored into your business at the most fundamental level.
"In fact, I’ve seen hurried technology purchasing decisions that proved to be loss makers because the business wasn’t digitally-enabled in a wider context. In such cases, the pressure on these individual decisions was immense, making them almost certainly doomed to fail.
Digital Transformation - Discerning Digital
2) The Long View
"Digital transformation isn’t a sprint or even a marathon - it’s a journey. If you want to make money through digital, you must be prepared to set long term goals, potentially with short term sacrifices.
"I’m reminded of a publishing business I worked with early on in my career. The business made most of their revenue through a leading print publication, but had a clear-eyed view on the role of digital publishing in their future.
"They made the decision to cannibalise their own advertorial revenue in the print publication for digital packages which initially made less money, but guaranteed emerging market share.
"By the time their competitors were up to speed, the business had not only secured the digital market in their field but protected their future. They remain one of the most successful digital publishers in the UK.
Growing Your Digital Revenue - and Your Business
"The lessons are clear - growing your digital revenues takes willingness to embed digital at the core of your business and an understanding of short-term pain for long term gain.
"When it comes to digital transformation, doing nothing isn’t an option. If you don’t make these investments in growing your digital revenues now, your competitors certainly will."