Photo: Burberry Instagram
“It’s all very nice being a digital leader, but do you make more money?” According to a recent study from Capgemini Consulting and MIT’s centre For Digital Business, the answer is yes, to the tune of a 26 per cent increase in profitability.According to Didier Bonnet, Capgemini Consulting’s Global Practice manager, what distinguishes these companies is an intense focus on transforming in one area that they’re best at, getting it right, and then applying those lessons and data throughout the rest of the business.
These companies see digital technology as the thing that sets them apart, not just another tool. It’s not an experiment, but an intensely focused program based on getting business results.
“They were very focused to start with in their investment,” Bonnet says, “so rather than just going all over the place and investing in, you know, people, collaboration, customer experience, and operations, they had a pretty clear starting point.”
But that starting point can be very different depending on the company, as Bonnet highlighted with these two digital outperformers from the report:
Burberry: Starting with the customer
“For example, Burberry, the fashion retailer, really started with customer experience, they first tried to get their shop sorted out very well, they put screens in that connected all of the shops to the head office. From there, they moved on to slightly more sophisticated social media applications where they actually launch their collection on social media first before they’re at the Milan or Paris shows. From there they moved on to mobility, and now they’re right in the middle of using all of the data for analytic purposes that they’ve managed to gather from connecting their organisation. But it started from the customer experience.”
Burberry took the customer experience, invested heavily, then used that data and experience across every channel. Bonnet says “it’s the difference between sticking a technology in an existing process, substitution if you will, versus really transforming the process with the power of what the technology can do.”
Caesars: Using data to make everything personal
“Caesars has really started on analytics, so they tried to really work on how to personalise the experience for the customer. Once the analytics were sorted out, they moved into mobility with location based marketing, eventually reaching a point where you can get recognised when you walk into a store and get preference based coupons and advice on what you can do in the resorts and the casinos. Now they’re moving more and more into the operations side.”
Caesars’ business encompasses shopping, restaurants, casinos, and more. Starting with data from their customers allowed them to take every other tool digital technology has to offer and use it to boost performance across all parts of the company.
Though the paths were very different, the lessons are the same.
Find the report here
Business Insider Emails & Alerts
Site highlights each day to your inbox.