Don’t fear disruption. Get ahead of it.

May 16, 2017 9:58:05 AM

Customer value innovation is what should drive your business transformation

Don’t be intimidated. You don’t have to fear that disruption will leave you behind and send your customers to the competition. Instead, you can chart your own path to digital business transformation and gain mastery in creating customer value. The tools and methodologies to make this happen are available, proven, and affordable.

Let others get disrupted. You perform controlled, value-driven change management.

In manufacturing, transportation, the public sector, professional services, and many other industry sectors, the talk of disruption is unceasing. If it’s not happening right now, it’s imminent. If it’s underway already, it won’t stop soon. Competitors and innovators using advanced digital technologies are revolutionizing business models and making inroads where established services and ways of thinking dominated for generations.

While business leaders know that they need to deal with the aggressive aspect of disruption, that’s typically not what they want to realize in their own organizations. If they need to prepare for digital business transformation, they hope it can be accomplished in gradual, controlled manner, without alienating their long-time customers and trading partners – but in time to capture the innovative momentum and compete against the disruptors.

That kind of approach is certainly practical and promising. Digital transformation is not about purchasing more of the latest technology products, but making more strategic, connected use of those that you already own, and making sure the company is unequivocally focused on delivering value to its customers. As Forrester points out in its recent report, “To maximize the impact of digital investments, business and technology leaders must learn to value such investments through the eyes of the company’s customers.”

Digitally enabled services need to deliver measurable results

Something as mundane as a systems integration can support your digital transformation and help you launch digitally enabled services. For example, if your typical product is a complex, expensive machine that for most customers is business-critical, you can gather live data from the machines you place on customer sites.

You can connect that data to the engineering, manufacturing, and asset management capabilities within your ERP infrastructure. As a result, you can offer customers predictive maintenance services along with collaborative, individualized innovation of new or enhanced functionality. It’s a classic case of digital transformation or Industry 4.0, bridging physical objects and digital data in cyber-physical systems. Even better, this doesn’t even have to get expensive. In the modern, public enterprise cloud, standard systems integrations, business analytics, and almost any conceivable software capability is readily available and highly affordable on a subscription basis.

Forrester notes that a “classic ROI calculation” is not always practical or even helpful for digital investments. However, you need to ensure that your activities and investments are worthwhile and yield the results you look for. That means you have to assess the outcomes one way or another. There may be intangible aspects to the digitally enhanced customer experience, for example, but it should have a measurable impact in terms of customer retention, repeat business, referrals, improved NPS score, larger transactions, profitable collaborations, service contracts, and other aspects of the business relationship. Establish metrics that matter and measure what makes sense, or it may be very difficult to keep your digital transformation initiative on track.

Customer value rules

From our own experience, we agree with Forrester on the holistic aspect of digital transformation. Digital transformation of your business may provide measurable value to your customers in clearly defined areas, but refocusing the organization to accomplish this involves everybody on the team and all business processes.

In accomplishing this, the customer value is what matters most, not so much what you think of the benefits and advantages of your product or portfolio. If you create software products, your process for building and evolving them may need to change, using other, more efficient approaches and a new way of validating outcomes.

If you design and manufacture industrial machines, your ultimate goal is to enable your customers to keep their end customers happy. Your unique value comes alive in that enablement, and the best possible machinery with innovative features and your engineering IP is a part of it. So are the value-driven customer interactions by the sales and service department and the way your maintenance technicians handle their schedule and serve the customer during their onsite appointments.


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About Author
Luciano Cunha

Luciano Cunha

Chief Executive Officer (CEO) For Luciano, being responsible for To-Increase’s global sales and marketing means unleashing the company’s insight, innovation, and creativity to tell our story and help customers achieve their goals. On the road much of the time, he travels the world to meet with customers, understand their challenges and ambitions, and find the most effective ways to help them advance. Luciano develops and mentors our marketing and sales team, and creates strategies to help the To-Increase worldwide partner channel thrive and grow.
Making Customer Needs the Main Business Driver Luciano and his team have daily conversations with the To-Increase research and development organization to bring customers’ requirements and concerns into the road maps and design of our solutions. Luciano brings his insight to the marketing group to make sure the company’s communications resonate with customers and speak directly to their experience.
“I’m awed by customers’ innovative spirit in taking business management technology past its limits and by their generosity in letting us participate and empower them. I hope to transform our organization to become even more customer-centric than we are today. That means making more resources available to spend productive time with both our customers and partners, so we can ensure that we place into customer businesses effective solutions that fit the evolutionary stage of their operation and the way their people and processes work.”
Empowering a Global Channel
Because To-Increase only sells through partners, readying the channel to be successful in helping customers is a business-critical effort. Luciano aims to meet partners where their interests are. Partners who consider the relationship with To-Increase strategic can rely on our industry specialists to work with them as they plan their growth and serve customers. If partners prefer a less collaborative relationship, they still receive the rich To-Increase expertise and resources to ensure they win the business, perform a successful deployment, and retain a satisfied customer. In working with partners and their customers, Luciano brings to bear his experience of many years of creating successful, customer-focused business development and marketing strategies in many of the world’s countries and regions.
Enabling Customer Success in Challenging Business Environments
Looking into the near future, Luciano expects that customers will continue to expect To-Increase to help them make business sense of unfolding trends and technologies. For example, the internet of things (IoT) will thoroughly revolutionize manufacturing, engineering, and supply chains. Big data will be meaningful and valuable when decision-makers can use technology solutions to transform it into actionable business intelligence that supports key roles and business processes. Mobility will help companies become digital enterprises and move business processes forward from any location, at any time. Team To-Increase harnesses innovation to help customers translate the promise of these technologies into business results.
Before his current role, Luciano for several years was one of To-Increase’s global industry directors, responsible for our industry solutions. His experience also spans more than 17 years in IT and manufacturing management roles. These positions took him into various areas at IBM Brazil, serving as product manager for several software development companies, and included working in senior management at a manufacturing organization in the U.S.
Luciano is married with two young children. Away from work, he enjoys participating in a soccer class together with his son and daughter as well as taking relaxing walks in natural environments with his family.

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