Service Digitalization – Part 1
What is Service Digitalization? The Gartner glossary defines digitalization as “the use of digital technologies to change a business model and provide new revenue and value-producing opportunities; it is the process of moving to a digital business”.
The Service Digitalization process is probably different for each company and industry, but I think we can isolate some essential objectives that are common despite the specific operating environment.
Objectives and characteristics of the Service Digitalization are at least:
- Provide excellent customer experience
- All software communicates via API
- Is essential part of the customer service flow
- Represent the new way of operations, opposite to the legacy systems
- Is easy to maintain and update
- Is utilizing well-known, well-documented modern technologies
- Can be easily upgraded/downgraded for performance and capacity
- Do not require any downtime during scheduled maintenance
- Are easily accessible; 24/7, anywhere, anytime
- Is highly secured and restive against general network attacks
- Is cost-effective and in-expensive to maintain/develop further
The old way – and the change
We could spend the whole day of listing in-house services that are still produced using the old, traditional ways even the modern tools and technology is already available.
Reasons of doing it the “old way” and resisting the change are usually the following:
- We’ve always done it like this…
- Our Personnel has been trained/is used to do it like this…
- We are now too busy to change it/learn new stuff…
- Our customers want it this way…
- Nobody has time read those reports and analyze the data.
- We don’t have budget for this – let’s check this later…
- Customers like it this way – they don’t want to change it…
- We are starting other technology project soon/next year – let’s get back to this when its started/done…
I’m sure many of those listed can be valid reasons to postpone the change, but too often they are just poor excuses when we see that benefits are brought by the new service:
- Customer experience will sky-rocket
- Service use and profitability increases
- Amount of manual labor will decrease significantly -> savings in costs
- Work execution time shortens -> savings in costs, higher efficiency
- Prevents service misuse and fraud
- Service Digitalization is usually very cost-effective
-> required capital is low, fast implementation project
- Digitalized services have low operating costs
- Digitalization project does not interfere other ongoing projects and has minimum impact on existing operation/daily activities
The essential factor for any successful project is the commitment from the both sides; From the Buyer side it is essential that the management is fully committed to the change and has assimilated the new operating environment requirements and benefits; The resistance, that all the projects and changes in the organization/operations will face, can be managed more fluently when management understands the reasons why the change is current and mandatory, and can clearly communicate this to the operational staff.
My name is Vesa Haimi, entrepreneur, inventor and CEO of a small technology business in Helsinki, Finland (PB-GROUP LTD.).
I’m 48 years old, family man and enjoying golf, when it is warm enough.
I see myself as a global citizen after living abroad for several years and working in various projects in over 50 countries.
I’ve been working for large companies in various positions and also been founding new start-ups; I love the possibility to be creative and invent new IT services, including writing specifications, programming and commercialization.