As time goes by and as many different digital initiatives are developed, companies must look for three main types of value in order to continue growing and making a difference. Do you want to know what values we are talking about? Keep reading the article and find out what they are.
Researchers Ina Sebastian, Peter Weill and Stephanie Woerner conducted interviews with 23 executives from companies around the world and an exploratory statistical analysis using data from a global survey of 1311 executives. The three types of value explained 39% of the companies’ revenue growth and 24% of their net profit margins compared to other companies in their industries.
According to the Management Sloan School article, there are 3 types of value for companies:
01. Value of operations
Creating new value from operations is the foundation of digital business, in fact companies can benefit from the digitization of business operations through cost reduction, increased efficiency and speed.
Some examples we can mention are developing modular components, automating processes and being more agile. 54% of the companies surveyed were effective in creating value from operations.
02. Value of ecosystems
Ecosystems are new to most large traditional companies and are created when one company partners with others to provide customers with a single destination where they can conduct a variety of activities and transactions.
It is known that companies have a 30% effectiveness rate, on average, based on the ecosystems and the value they offer.
03 Customer value
Companies working on digital innovation are able to generate more revenue from customers through cross-selling (selling different products to an existing customer) and new offerings. Digital initiatives allow the company to expand its knowledge of customers and offer them more choices. Industries have an average efficiency of around 40% in creating value from customers.
Is it easy to get started in digital? Obviously not, and that does not mean we should be afraid to take the risk of going beyond the conventional. The road may be difficult, but once you take the step you will be able to build a new strategy focused on improving processes, customers and the combination of systems and ecosystems.
Starting today will bring us benefits tomorrow and many possibilities for our companies, remember that you can count on LISA’s help!