The true lifecycle of digital transformation and eCommerce
Digital transformation and eCommerce are fantastic triggers to drive efficiency and improvement.
So why doesn’t every manufacturer apply them? Cost is often given as the main reason. The truth is, they’re intense steps to take. No one likes complexity or uncertainty. There is a huge anxiety, a fear that ‘it’ll cost too much’ or ‘we’re not sure it will work’. But in the 21st century it’s the case of who dares, wins.
Here our seasoned experts explain how to best approach this exciting new chapter in your company:
Maximise margins by selling direct
In manufacturing, profit margins are often small because of multiple tier, indirect distribution. But digital transformation and eCommerce allows companies to sell directly to the consumer.
The improved brand control, customer experience and margins leads to larger profits.
Other benefits include:
- reducing or removing some of the resources needed to run the business
- improving the manufacturing process through data capture and improving production lines
- being able to record sales channels inside and outside of the organisation
- opening up competitiveness in markets such as Europe
Once you adopt this way of thinking, it stretches across all processes. And that is true digital transformation.
Why is digital transformation so daunting for many businesses?
Digital transformation is extremely difficult to do. It took the car industry decades to fully adjust to conveyor belt manufacturing and robotics.
A company needs to be willing to take a long, hard look at itself. What’s working? What’s not? Are you ready to invest? To follow what the data says rather than a hunch?
Change is difficult for humans. We’re hard-wired to prefer the familiar. If something has been done the same way for 100 years, why change it? However, a more data-driven, technical approach can secure a company’s future for the next 100 years.
The room where it happens
When it comes to digital transformation and eCommerce, most manufacturers have the same issues:
- what will it cost?
- what data can we look at to assess the possibilities?
- when will we get our money back?
Often those at director level are looking for certainties.
They ask questions such as:
- what will the margin or volume increase be?
- where is the cost saving?
This can be tricky if the organisation is not yet fully digital. They will need to dig into the numbers. This includes the cost of staff time, not just software or hardware purchases.
What does successful digital transformation need?
Success needs a structured, coherent plan. The right people must buy into the project. And everyone has to commit to seeing it through.
A bold strategy is required. Piecemeal implementation of digital transformation and eCommerce simply does not work. Instead all department heads need to be fully on board, motivated, with access to the right team and the right project management system.
What’s the best project management approach for digital transformation?
The planning stage needs:
- traceability
- responsibility
- continuous evaluation
- raw data on which to base future processes and decisions in a format that makes sense
- solid project management
Time and again, PRINCE 2 gets the job done. The full name for this process-based methodology is Projects in Controlled Environments. It gives a strong structure, but is also flexible enough to allow for the unexpected.
Team + technology = success
Technology can only do so much. Every project needs a talented team of ‘can do’ people. If these don’t exist within the business, they need to be recruited.
What does success look like?
Digital transformation done well has a huge impact on a business. We’ve seen past clients experience:
- reduced costs
- an increase in production capacity
- improved data capture and visibility
- ‘de-siloing’ – so information is shared across the business, rather than eddying around specific departments
- less reliance on key individuals
- increased profitability
- increased scalability
What comes afterwards?
Digital transformation involves continuous improvement. It’s not just a case of install and forget. You are never done.
Technology will need to be updated and replaced. But maintenance is an opportunity to stay ahead of your competition. Can we make it faster? Better? Cheaper?
What are the biggest challenges with digital transformation and eCommerce?
At the end of the day, it isn’t the technology. It’s shifting a company from basing its actions on instinct to what the data tells them. And gaining buy-in across the workforce, from the factory floor to the executive suite.
How can comsim help?
We offer in-depth eCommerce know-how, across a broad set of systems and processes. We can have those crucial cost-return conversations and gain buy-in at the right level. We know how to structure a project, how to communicate it and how to market it externally.
With our help, you’ll have access to best practices and new ideas. Instead of chasing the competitive landscape, you’ll be leading it.
Next steps journey?
When it comes to digital transformation and eCommerce, we’ve been there, and done that. A hundred times over. To tap into our decades of experience, please get in touch.
You can use our:
- Contact form
- email us on info@comsim.net
- or call us on 0333 004 0099
.