Arrigo Demetrio

Gandhi Surya
• Customer experience
• Product innovation
• Value added
5.1 OMNICHANNEL: A PRESENCE ACROSS ALL CHANNELS

the concept of omnichannel, where customer sales and customer

contact occur across all channels. It is no longer limited to
classic retail and its end consumers.
 Digitization is fundamentally changing not only how
customers find information and make purchases, but
also how companies and their existing and potential
customers communicate and interact.
BAOSTEEL

The Chinese iron and steel group Baosteel offers its

entire product range,from sheet steel to specialist
aluminum products, via its online platform Ouyeel.
Customers are able to find all the information they
need on the user-friendly site in a single click
THE MILLENNIALS WILL BE THE STRONGEST
CONSUMER GROUP

In five years, people born after 1990 will be the

strongest consumer group.
77% of this generation spends three or more hours
online each day; for 56%, even though they have a
lower income on average than the general population,
they are above-average spenders online.
STRATEGY AND
IMPLEMENTATION
SET THE RIGHT
TARGETS

The aim is simple: companies need to

offer their customers a consistent
experience across all channels and
across all contact points
 SET THE RIGHT TARGETS

The aim is simple: companies need to offer their customers a consistent

experience across all channels and across all contact points
For Example :
1. In retail, it includes services and offers, such as customers being able to
check on a smartphone whether an item they saw in a commercial is available
in the nearest store. Or perhaps targeting customers who are browsing in a
store with vouchers or discount coupons sent to their smartphone
2. Banks have integrated their services in such a way that customers can start
filling out a loan application on their smartphone before going to bed at night,
and then complete it in their branch the next day on their lunch break and sign
the contract.
 DATA

ORGANIZATION
KEYS TO SUCCESS
AND CULTURE

TECHNOLOGY
5.2 DYNAMIC PRICING: UP-TO-THE-MINUTE PRICES

Dynamic pricing is fully automatic, with computers taking

over the work of calculating and processing huge volumes of
data about competitors’ prices, sales promotion figures,
potential customers’ search trends, product ratings on
Internet forums, and even comments on Twitter and
Facebook.
.

Depending on the company’s strategic aims,

whether it’s maximizing market share or
profit, an algorithm calculates the optimal
price when necessary, sometimes refreshing
every minute
DIGITIZATION DISRUPTS THE CONVENTIONAL GROUND RULES OF
PRICING IN RETAIL
Finding the Right Channel for Each Message The various digital communication channels present marketing
with different challenges. By analyzing customer and usage data, marketers can address individual target
groups specifically in these channels. In this new world of performance marketing, companies no longer buy
advertising space on individual websites, but instead pay to reach target groups across a range of sites. The
target group filtering is based on previous surfing habits. Tracking customers who viewed a certain product on
store websites, particularly if they placed the product in the shopping cart but didn’t complete the purchase
(retargeting), is particularly effective. They can then offer the same or a similar product again since the
customer has already shown an interest. Search engine marketing is also aimed at very specific customer
segments and purchases. Search engine optimization (SEO) optimizes the content and links of a company’s
website to the algorithms used by Google so that the website appears right at the top of the hit list. Search
engine advertising (SEA) purchases the top positions for paid advertising in the Google search results. Being
positioned among the top hits is crucial to the success of both SEO and SEA. Between them, all search results
that are not visible without scrolling receive less than 10 percent of all user clicks.
Marketing in social media is where it gets exciting, On Twitter, Facebook, Instagram, and the rest, it’s not
about advertising slogans, but more about storytelling. This means a completely new way of thinking and
organization for marketing departments; they need to think more like editors and less like advertising
agencies. Content marketing is a key discipline in today’s digital marketing, and is explained in more detail
next.
 CONTENT IS KING

What story am I telling to whom? How, where, and when will I tell it? These are
the questions that content marketing must answer. The last question is simple
to answer: always. Essentially, there are four central success

factors for digital content marketing:

CONTINUITY AUTHENTICITY

RELEVANCE INTERACTIVITY
HOW TO SUCCEED IN CONTENT MARKETING

Technology

Organization

Oversight

Control systems
 5.4 DIGITAL PRODUCT DEVELOPMENT AND OPEN INNOVATION :
RETHINKING PRODUCT DEVELOPMENT

The products that brighten up our every-day lives and keep the economy going have
changed. They’re becoming smarter as software’s share of the value added
increases. For example, the car of today has more lines of programming code than
was contained in Windows Vista, and it’s increasing all the time .Software requires
that development departments in many industries now rely on the methods of
programmers. This is digital development, a structured route to new products and
services. The developers combine digital and technological innovation in an agile,
cross-departmental approach that drives projects to production stage with the end
consumer in mind at all times. In this process, speed is more important than
perfection. Try, fail, and learn are the core components of this method. The digital
innovation process (DIP) is determined by guiding principles, starting with modular
structure. Developers begin with a focused project, and then transfer the results to
neighboring areas. All innovations target the customer.
The DIP should initially be defined as a minimal version, then tested and refined
5.5 PRODUCT DESIGN: LEARNING FROM SOFTWARE DEVELOPMENT

It’s called feature-based design. Digitization is fundamentally changing

product development, from the product concept and development
processes right through to data-driven decisions.
CONCEPT AND BENEFIT
 Customers increasingly
expect products to remain
fresh and new in a world
that’s developing faster all
the time.
 Companies secure
additional revenues with
consistently high margins.
 Society and the
environment benefit
because the product
platforms
5.6 FASTER, MORE FLEXIBLE, MORE EFFICIENT: SUPPLY CHAIN 4.0

Big data and advanced analytics, the ability to search huge unstructured
data volumes for correlations and causalities, together with robot
technology and the Internet of Things, are revolutionizing the
management of the supply chain.
SEVEN INNOVATIONS WILL FIRE THE CHANGE

• Autonomous planning /
machine learning
• Almost fully autonomous
trucks, and systems for truck
convoy solutions
• Fully autonomous (driverless)
trucks
• 3D printing for C items
• Cloud logistics platform
• Joint planning in the cloud
• Information platforms
5.7 DIGITAL LEAN: THE DIGITIZATION OF PRODUCTION

With the Internet, companies can now

largely integrate their own processes with
those of suppliers and customers.
FIVE CENTRAL THEMES FOR THE TRANSFORMATION

• Digital lean significantly increases

productivity.
• Digital lean isn’t about IT, but about
business.
• Digital lean is a job for top management
and cannot be delegated.
• Digital lean requires a holistic
transformation approach.
• Despite digitization, analog humans are
still needed in digital lean.
5.8 DIGITIZATION IN THE OFFICE: BOTS TAKE THE REINS

• in around 60% of all

occupations, 30 % or more
of all tasks could be
performed by machines.
• Even 20 percent of
management tasks could
be performed by robot
workmates.

the automation of administration - Alexander Edlich

WHY AND HOW
• Smart Process Automation Is Revolutionizing Office Work
• How Will Companies Change When Office Work Is Automated?
• Automation Is Relevant Even for Complex Jobs
• Automation Is More Than a Technological Decision
SUMMARY
• In this chapter, it has only been possible to describe the most important changes,
but there are far more—including the next generation of customer life-cycle
management and the introduction of new commercial models.
• Procurement is also fundamentally changing as a result of digitization, virtually
forcing the introduction of omnichannel capabilities even in the B2B sector.
Ultimately, it is clear that every function in the company will benefit from
digitization.