Analytics Magazine Analytics Magazine, May/June 2014 | Page 8

EXE CU TIVE E D G E Digital value: Greater than the sum of its parts Going digital, in simple terms, means transitioning from an “inside-out” to an “outside-in” approach to business. BY HENNA A. KARNA 8 | Over the past decade, corporations across industry verticals have invested significant capital to upgrade their infrastructure to analyze customer data collected within a multichannel environment. And so the obvious next question is – what now? The answer can be derived from the combination of capabilities, created by the investment in these newer technologies – specifically, the digital engagement of the customer, where customer represents both external consumers and internal stakeholders. Whether to create a network of external customers to drive the creation of a dynamically optimized yet evolving set of products or to drive efficiency in internal operations, digital presents corporations with both challenges and opportunities. Going digital, in simple terms, means transitioning from an “inside-out” to an “outside-in” approach to business. With the exception of a handful of super-enterprises, most corporations are focused on “What can I offer to customers?” and “What can I deliver to customers?” That focus is important but traditional “inside-out” thinking. On the other hand, corporations with an “outside-in” orientation ask questions such as: “What do customers consciously – and subconsciously – want?” “How can I affirm, if not expand, my control over the value chain with new ideas and products?” “How do I redefine business processes with an operating model that informs key answers to the aforementioned questions?” A N A LY T I C S - M A G A Z I N E . O R G W W W. I N F O R M S . O R G