Journey from a transactional business to a customer-centric business

Thought piece by me originally published at Avaus Marketing Innovations

A lot of companies have been on a journey to change from a transactional business into a service business. Companies previously sold software licenses and now they sell subscription services. Where previously engines were sold, now lifecycle engine services are the buzzword.

The transactional business model works when the clients know their problem and the solution to their problems. This kind of business is easily copied and usually the competition is fierce and based specifically on price. What’s more important, the price/value comparison is extremely easy for the customer.

In the service business, the customers know their problem but not necessarily the solution. The actual value for the service is thus much higher than when the customer was buying a product that acted as the solution. Price comparison is significantly harder and the price is no longer a measurement of quality. A good service company is easily capable of up-selling its offering if it is related to the problem.

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Digitalization – the first true revolution in business history

Thought piece by me originally published at Avaus Marketing Innovations

Digitalization – It’s a buzzword because it works!

The reason why digitalization is such a hot topic is not because it sounds like a “cool thing” to do, but because it is probably one of the first true revolution in business history. (In comparison, the industrial “revolution” 1760-1840 took 80 years. Sure, there are a lot of similarities as well.)

Digitalization is defined as the integration of digital technology into everyday life. As business and working is a major part of everyday life for most people, it is probably the main thing to change. Being able to automate processes, measure aspects of business that were previously unmeasurable and even cross reference and apply information from a wide variety of sources to provide insight into decision making.

And all these are done so that the core rationale behind businesses can thrive: Making a profit.

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People first, technology last

Originally posted in Avaus Marketing Innovations website

In early February 2017, Avaus hosted the first ever Marketing Tech Summit in Stockholm, where thought leaders within the field convened and shared their knowledge and experiences. The examples and cases heard show the way ahead for a truly digitalized world.

Even though the speakers were very successful in emphasizing the required changes needed to embrace new technology, they all also pointed out that empowering the organization and obtaining sufficient support is vital to implement the changes successfully.

The three key takeaways from the Marketing Tech Summit concerning organizational development were:

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New Achievement – Top feedback giver of the month!

Originally posted at Alumni Global’s website

The traditional frequency of feedback and development discussions, at least here in Finland, is annually or bi-annually. Outside these development discussions and appraisals, no feedback is given. Yes, one may argue that it helps the employees to focus and actually develop themselves, as they have ample time to reflect on themselves and their behaviour and contribution. However, when leading “millenials” the traditional feedback culture does not provide the results expected from it.

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Digitalization – not just product development

Original thought piece by me, originally posted at Alumni Global’s website

Digitalization, Internet of Things, Big Data. All of these hypewords have appeared to the public discussion and used either as conversation starters – or finishers. “What are your thoughts about …?” or “Yes, but Big Data will change it all.”

“Earning models and business models are subjects to drastic change when the true digitalization occurs.”

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