The current era is characterized by a rapid transformation of traditional industries. In industries like banking, insurance and more, established companies are threatened by emerging digital players and are required to go through a digital transformation to stay relevant.
This transformation involves incorporation of digital technology into all parts of the company, resulting in a more efficient company that is better equipped to adjust to the new, fast changing world.
A key element in successful Digital Transformation is building digital products such as mobile apps and websites that provides value to their customer. This is what we call “Customer-focused Digital Transformation”.
Building Digital Products
Building digital products requires deep understanding of the underlying customer problems and finding the best digital solutions for them. Since digital products are continuously evolving, it is an ongoing process – frequent launch of new versions and improvements based on market feedback.
Digital companies are designed to build digital products. Traditional companies need to develop modern Product Management skills in order to move from developing technology projects that ends when the project is shipped to focusing on customer value and building digital products that continuously improve it.
Generating new customer value
Digital transformation is much more than converting traditional products to a digital form. It opens a new world of opportunities to deliver higher value to customers.
To identify and provide the right value to the right customers, established companies must go back to discovery mode. In this mode, the Product team researches the market on an ongoing basis to find better solutions and use short, iterative development cycles to incorporate market feedback quickly and stay ahead of the curve.
Discovery mode goes beyond products and features. Digital products enable targeting different market segments and introducing new business models that may be more appealing to customer and increase the revenues for the company.
This is a cultural change that requires transforming companies to continually challenge the status quo, experiment, and get comfortable with failure. It is very difficult, if not impossible, to go through such a transformation without external help. However, companies that do succeed to make it do not only get to stay a player in their current market – they can develop to be a bigger player in a much bigger market.