Know the things in building the digital transformation value chain. Also, know the things or challenges to overcome to avoid failure.
Introduction About The Digital Transformation Value Chain
Digital transformation enhances your service in a customer’s experience. Also, in business operations.
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Moreover, the results of the transformation could deploy new business models. So the value chain is the process of separating the business activities across fundamental and supporting actions.
Fundamental activities are something that relates to the following:
- marketing sales
- support to product or service
Supporting actions are the supporters of the fundamental activities. Take human resources as an example, as it supports the staff in working at the help desk.
Building The Digital Transformation Value Chain: Do The Mapping
So in building your value chain you need first have the mapping of your business process. It should be base on what your customer sees it.
However, usually, this process intends to look messy as you determine the different touch-points. Also, it includes the departments and staff that customers should go through.
So with the mapping, you could look at the information that your customers provide. So after the interaction, you could redraw the process in a hard system.
This time it should be relating to the stages of where your customers go through. So with this, you will able to have the primary activities list in your value chain.
After this, you can create the primary activities one can quickly draw out. Supporting activities are required through each stage of the value chain.
Also, you can use the following as your strategic questions:
- How will the primary activities run without human supervision? Will they be automated?
- Is your customer’s the moment of truth?
- How will the information be transferred between the fundamental activities and supporting activities? Does digital make this more useful?
Reasons Why Value Chain Fails: Challenges To Overcome
So some challenges need to overcome to succeed in the value chain of your digital transformation.
- Some of your executives are unclear about the supply chain investment status. Also, with the implementation journey of your business. Therefore, you need to do something to keep them updated on the happenings.
- Lacks of CEO leadership or budget and sponsorship.
- Somethings reside in the silos with only little collaboration across the companies. It might include procurement, operations, logistics, and many more.
- Reluctant in leadership to change or reinvest. Especially to the business model to secure the changes and disruption in technologies.
- There is no cohesive cross-organizational digital vision nor strategy.
- Entrenchment in the IT systems and culture because of the resistance to change. The mindset of “Why fix it if it’s not broken?”
- Lack of development in supply collaboration and new technologies. Also, it could lead to your company unable to show early wins to earn staff. Also, stakeholders to buy-in
- Thinking that digital strategy is for “technology fix”.
A reminder that in every digital transformation, communication is the key. It should be applied not just internally. It should also include partners, suppliers, and other stakeholders.