What: The Harvard Business Review explores what is at stake with digital transformation.

Why it is important:  While the 4 cases of use identified by the researchers can be debated, the 4 myths that they are trying to debunk greatly echoes the conclusions of the CEO meeting on the topic that the IADS organised with Accenture in October 2021.

The biggest change induced by the digital transformation is that customers have now a continuous interaction with brands, when it was only sporadic in the days when they had to go to stores to shop. Going further, sensors and data collection points allow to analyse behaviour and nudge customers when needed, providing, according to the authors a competitive advantage.

This competitive advantage can take 4 forms, which can all help turn episodic interactions into continuous relationships:

• Respond to desire: a customer knows what she plans to buy and everything (ordering, paying, receiving the delivery) is automatic and simple (e.g.: Kindle)
• Curated offering, to help customers understand all available options (e.g. Netflix)
• Coach behaviour: customers are made aware of their needs (e.g. : automated medication)
• Automatic execution: detect and resolve a customer need before the customer notices it (e.g.: automatic replacement of printer cartridges).

Research also shows that 4 myths are often blinding companies when they are designing their digital strategies:

• The more connected companies are with their customers, the better: this leads in structural burnout as most of organisations are not able to answer to an ever-increasing demand due to the very fact that customers are permanently connected,
• The more data is collected, the better: companies simply do not know what to do with the amounts of data collected,
• Connected user experiences are great additional features for customers: new services are not always the best. A simple example is when BMW removed keys and proposed customers to open their cars with an app, which was a mistake and ultimately reversed.
• Connected customer experience can only be created for existing customers: companies should also look at their ‘internal customers’: suppliers, employees.

Designing a Seamless Digital Experience for Customers