Technology has developed exponentially in the last few decades, which has opened up amazing opportunities. Yet, old operating models are woefully inadequate for squeezing out the full benefits of these developments. Digitalisation is about bridging the gap between current operating methods and new ones enabled by advances in technology.
Digitalisation is a process of reshaping services to a digital form and replacing old business models with fresh service innovations. It encompasses everything from digital innovations, capabilities and the digitalisation of processes and business activities to the customer experience. It is also about creating new methods of communication, expanding networks and facing the changes of our world as it grows ever smaller.
Digitalisation is an unprecedented source of new opportunities and capabilities for economic growth and value creation. In our rapidly-developing world, companies must meet their customers’ needs by investing in digital services and service design. Currently, the majority of new products and services are based on digital solutions, the smooth functionality of which is often critical to the customers’ business.
Moreover, business models have changed in recent years. The development of service business models is increasingly reliant on networks formed by companies and customers for collaborative service development and value creation. The opportunities provided by digitalisation dissolve sector boundaries, force customer organisations to face growing international competition and increase end customer demands.
The capacity to adapt to a new operating environment and take advantage of the new opportunities in the best possible way also requires changes in working culture, in addition to organisational structures, processes and systems. Technological developments are unpredictable, which means that organisations must be agile in order to react to changes. Hierarchical companies are not sufficiently flexible to adapt and reinvent themselves in our fast-paced world. This is compounded by the fact that the nature of digitalisation and the opportunities it provides is not all that well understood. Precious few can adapt without outside help.
New services must be at the pinnacle of development at all times. For this reason, we feel that service development should take place close to the customer and in small increments.