Unfortunately, reaching those customers is becoming more and more difficult. It’s not just about call centers any more. Even if it was, customers don’t really want to talk to you these days. They want things to work - period. And when they don’t work it can get ugly fast. Hundreds of individual software applications, messaging platforms, and social media channels are created every month. In today’s always-connected digital world, bad customer experiences or perceptions can go viral in minutes and do irrecoverable harm to your brand in the minds of millions of potential customers. Unless you’re watching and listening 24/7– you may not even know it!"
We are entering a new phase of technological innovation, a phase where the Internet will be fully integrated into our lives – how we learn, how we heal, how we manage our finances, how we get around, how we work, even what we eat. As the Third Wave gains momentum, every industry leader in every economic sector is at risk of being disrupted. That’s the Third Wave – and it’s not just coming it’s here.” Steve Case, Founder of AOL
Obviously, the world we live in isn't what it used to be. Globalization, e-commerce, and our always connected world have conspired to turn more and more market segments into "Winner Takes All" environments - with Retail (i.e. Amazon) being only the most prominent example. Digital-first and digital-only businesses seemingly disrupt well established business eco-systems at will and quickly become segment leaders - leaving more mature legacy players reeling to play catch-up.
Powered by: 1) unbelievable amounts of data from new sources (social media, IOT, 5g, etc.), 2) the ability to manipulate that data with new big data IT capabilities, and 3) the focused application of Big Data insights directly to critical business processes, these true leaders in digital transformation are able to establish increasingly wider leads between themselves and the rest of the pack. It seems as if all you have to do is count the unicorns to understand who these companies are.
Behind the scenes, you must totally reinvent your people, processes, and technology, in addition to fully leveraging the powerful insights made available by the mountains of new data being generated social media, the app economy, and the Internet of Things. With unprecedented amounts of customer-specific information being generated 24/7, companies that can transform themselves into mass personalization powerhouses will seize the day.
Research shows that since 2000, 52 percent of companies in the Fortune 500 have either gone bankrupt, been acquired, or ceased to exist as a result of digital disruption.
It’s all about velocity. The leaders are simply faster. Within their cultures, they have already established the value of using new data to make faster (daily to hourly to real-time), finer (from making highly personalized advertising recommendations to specific targeted consumers, to understanding and reacting to the total customer experience, to maximizing the means & capabilities to supply product), and richer (utilizing all the information that can influence a decision and continually refine the use of that data) decisions. Then acting upon those decisions as quickly as possible.
Yet, there is still hope for everyone else. Across industries, there is no shortage of possible use cases that can dramatically affect business results and financial outcomes. There is certainly no shortage of data. Machine learning (ML) and artificial intelligence (AI) further enhance the continuing viability of analytics. Until now, the challenge has been all about execution.
"Analytics will define the difference between the losers and winners going forward," says Tim McGuire, a McKinsey director. "But actually mapping out an analytics plan is complicated. You have to set a strategy draw a detailed road map for investing in assets such as technology, tools, and data sets and tackle the intrinsic challenges of securing commitment, reinventing processes, and changing organizational behavior."
