Future Platforms Spotlight Series in October – Operational Digital Transformation: from the Inside Out

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Posted by Adam Croxen on 08 Nov, 2018

Digital first businesses have changed everything

Digital first brands like Uber, Amazon, Airbnb and Netflix have changed what people expect in their interactions with the businesses that serve them. The default for many consumers today is to access the services and products they want remotely using simple intuitive user interfaces that are accessible anywhere. Backed up with seamless delivery of whatever they want whenever they want it.

This new reality has led to “digital transformation” being the buzzword most likely to be on the agendas of board meetings across the land with many programs started in earnest as a result.

 

Customer focused digital transformation is now on most strategic agendas

Our extensive research on this (a show of hands at our recent Spotlight Series event) combined with some (perhaps) more methodologically sound research from Forester, suggests that around 50% of businesses have a digital transformation strategy and program in progress. Of course, with the pace of technological change, you never really complete digital transformation despite the fact that 21% of respondents from the Forester research said they had, but that’s another blog…

Digital transformation from the customer point of view is well documented and highly visible all around us. What is less well covered and what we want to touch on in this blog, is how more established organisations can use digital transformation in their operations to deliver a better staff experience, greater efficiency and an improved customer experience.

 

Ignore operational digital transformation at your peril

This inside-out approach to digital transformation can be a good place to start for businesses that started in the analogue age and can bring about a wide range of benefits, from better service for customers to reduced operational costs which can equal higher profits, or a reduced cost passed on to customers, making businesses more competitive and less open to disruption.

If you want to enjoy some of these benefits and are about to embark on or are already on the journey of operational digital transformation, we think it’s good to break it down into three areas of focus:  

  • Process digitisation
  • Employee enablement
  • Performance management

Initiatives can look at one or more of these areas and there were a few great real-life examples of this presented by speakers at our recent Spotlight seminar entitled “How Digital Tools Can Transform Workplace Efficiency and Customer Experience”.

 

Domino’s digital transformation from the inside out

One speaker, Jason Prescott, the Head of Operations and Training for Domino’s Pizza, a hugely ambitious and digitally forward-thinking brand (they now sell 80% of their £1 billion worth of pizza’s each year online) discussed an operational digital transformation program that delivered significant benefits.

By using s GPS enabled application on the driver’s devices and data analysis and aggregation, they created a driver tracking and management system. This delivered against each of the three areas outlined earlier as well as having a significant uplift on customer experience.

 

Happier Customers

Firstly the GPS powered application enabled, for the first time ever, accurate performance management to be introduced as Domino’s could now track where the driver actually was. Prior to this, it was very difficult to measure any meaningful driver performance metrics and as such move the needle on the main customer experience measure – how hot the pizza arrives. And the hotter the pizza, the happier the customer.

This system also introduced process digitisation which improved operational efficiency. It did so by removing the highly manual and time-consuming part of the order process – the very start of the order where the driver had to physically go into the store, pick up the product and the delivery instructions. By measuring every part of the process which was enabled by the technology, it was identified that this part of the process known as ‘getting started’ actually took 30% of the entire delivery process. This was changed, so the order was received on the driver’s mobile device and the product brought directly to the driver from the store rather than vice versa.

 

Data analysis leads to innovation

Lastly, by giving data and visibility over their operations straight to the store manager in real time it enabled and empowered the manager in store to make improvements and changes in real time to their operations at a local level.

The point where operational and customer-focused initiatives come together was also illustrated well by this Domino’s example, as they can now tell the customer exactly where their pizza is and when it’s going to arrive. Better managing customer expectations and experience. This is just one example outlined in our event which featured examples and speakers from First Group Plc and Emirates.

 

Spotlight Series Video

If you want to learn more about how you can use operational digital transformation to make your staff happier, more efficient and empowered you can watch our recent event here:


 

There are lots of useful anecdotes, tips and pitfalls discussed by peers who have been through this process and continue to make transforming workplace efficiency their priority.

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