Building A Digital Business
If you want to operate in a digital world, you must become a digital company. Becoming a digital company, however, requires new strategies built around new types of innovation and creativity, new processes to support the new strategies, and a keen focus on the digital customer and the overall customer experience.
In short, most aspects of human society have become digital, and businesses that haven’t already made the digital transformation to keep up with their competition and please their customers should follow suit.
What Is Digital Transformation?
One of the initial barriers preventing airlines, or any organization, from undertaking a digital transformation is agreement among leadership as to what digital is and what it means to their specific business.
Digital transformation is the realignment of, or new investment in, technology, business models, and processes to drive new value for customers and employees and more effectively compete in an ever-changing digital economy. Digital transformation is a course of profound and radical change that points a company in a new direction and takes it to an entirely different level of effectiveness. In most cases, it will comprise a new strategy inclusive of new business and operating models enabled by progressive technology.
The Business Problem
To date, airlines have an array of technology necessary to run their businesses, such as passenger services, e-commerce, pricing, revenue-management, aircraft-movement, operations-management and airport-management systems. These much-needed technologies have sustained the airline industry for decades.
However, we live in a digital age, and airlines need to be able to bring together disparate data sets from these technologies so they can identify events across their entire organization in real-time and quickly respond to market needs, customer demand, irregular operations and so on. Specifically, the airline enterprise must become connected in order to uncover intelligent insights and take relevant action.
Because many of these core systems don’t currently have the intelligence and/or ability to communicate with each other, an airline can’t access the right information at the right time and in the right places to achieve maximum profitability or provide an exceptional customer experience.
It’s this customer experience and revenue optimization that is now required, and will separate the thought-leading and market leaders carriers from the insolvent; there is not a place for the middle ground in the digital age. And, it’s the data-powered software platforms that will drive this digital transformation and create the market separation between competitors.
Regardless of where an airline is with its digital maturity, employing this type of technology helps carriers continue to achieve digital transformation by:
- Using more real-time, accurate data across the entire organization;
- Applying more sophisticated rules, automated workflows, and data integration and orchestration
- Quickly innovating and turning customer data into increased revenue and decreased costs while delivering a truly personalized customer experience.
In short, compiling the right data from the customer journey (inclusive of the PSS, CRM, Loyalty, Operations, and other systems), deriving insight and taking action is the key to becoming a digital native organization. More specifically, airlines need to deliver insights to frontline employees to engage with customers or down-line software applications and decision-makers to take action at scale with the insights to make the right decisions.
As Emirates President, Tim Clark, echoes “Digital disruption, whether it be in the airline business or any other business, is staring us in the face – ignore it at your peril.”
To learn more, download the new Connecting The Enterprise For Action e-book.