As our 5-parts Digitalisation \u201cHow to\u201d series is over, the important points need extra-emphasis. Here\u2019s a summary\/checklist for your digitalisation projects:<\/p>\n
First things first: why would you digitalise? For some companies, it\u2019s about finding solutions to an incoming crisis; for others, it\u2019s about their passion for technology; and then, there are the regular context\/opportunistic projects that only use\/deploy technology to fulfill a market need.<\/p>\n
The biggest and strongest companies are, in theory, the ones that can benefit the most from crisis-driven digitalization. They have the urgency to optimise, and the resources to execute.<\/p>\n
But democratisation of technology (and commerce) means that even the smallest firms can now fight with equal chances.<\/p>\n
The main issue is not the availability of solutions, but rather using them to increase value all along the value chain.<\/p>\n
A digitalisation project often starts because someone feels strongly about it. Although one doesn\u2019t have to be Shopify\u2019s Tobi L\u00fctke and start a revolutionary e-commerce platform, passion and drive are important factors of bootstrapped digitalisation.<\/p>\n
Our learning: stay passionate while building your solution and while looking for the most perfect product-market fit.<\/p>\n
There are situations, though, where neither a crisis nor an entrepreneur\u2019s passion plays a role in digitalisation.<\/p>\n
Especially in larger companies, where the hard focus is on growing the business, there\u2019s an acute need to deploy digital technologies for the targeted goals of staying competitive and increasing revenue and profits.<\/p>\n
Read more \u2192<\/a><\/p>\n[\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row use_custom_gutter=”on” _builder_version=”4.7.7″ custom_margin=”||||false|false” custom_padding=”6vh||0px||false|false” border_color_left=”rgba(0,0,0,0)” locked=”off”][et_pb_column type=”4_4″ _builder_version=”4.4.1″][et_pb_text _builder_version=”4.7.7″ text_font=”||||||||” text_font_size=”1.1em” text_line_height=”1.6em” quote_font=”|700|||||||” quote_text_align=”left” quote_font_size=”16px” header_2_text_color=”#ff6317″ header_2_font_size=”1.5em” header_2_line_height=”0.9em” header_3_font_size=”23px” header_4_font=”||||||||” header_4_font_size=”16px” header_4_line_height=”1.5em” header_5_font_size=”14px” custom_margin=”||||false|false” custom_padding=”|20px|||false|false” hover_enabled=”0″ border_color_left=”#ff6317″ sticky_enabled=”0″] A company\u2019s readiness and attitude towards innovation are essential; but eventually, it all comes down to delivering value for stakeholders.<\/p>\n All elements of a business model can benefit from digitalisation, as value can be created in many ways<\/a> (such as, but not restricted to):<\/p>\n Just make sure you are 100% objective when assessing and developing the digitalisation project, as opposed to pure wishful thinking.<\/p>\n Just by digitalising a piece of your business does not automatically guarantee any benefits (for you and stakeholders). You will need:<\/p>\n Once targets, metrics and initial plan are clear(er), you will want to:<\/p>\n For both, the solution is an MVP \/ a minimum viable product \/ \u201dprototype\u201d that can act as a placeholder, in order to maximise learning, while minimising costs and effort.<\/p>\n Where do you go from an MVP? Sure, you can be successful with a great digital product\/solution. If not, try to pivot \u2013 i.e., change the strategy without changing the overall direction. It might sound unstable, but it can deliver \u201cvalue\u201d:<\/p>\n What if a pivot doesn\u2019t help, either? Then maaaybe just accept that your digitalisation project cannot create value within the current context (technology \/ market \/ revenue-streams), stop it, and find other ways to create digital value.<\/p>\n Read more \u2192<\/a><\/p>\n[\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row use_custom_gutter=”on” _builder_version=”4.7.7″ custom_margin=”||||false|false” custom_padding=”6vh||0px||false|false” border_color_left=”rgba(0,0,0,0)” locked=”off”][et_pb_column type=”4_4″ _builder_version=”4.4.1″][et_pb_text _builder_version=”4.7.7″ text_font=”||||||||” text_font_size=”1.1em” text_line_height=”1.6em” quote_font=”|700|||||||” quote_text_align=”left” quote_font_size=”16px” header_2_text_color=”#ff6317″ header_2_font_size=”1.5em” header_2_line_height=”0.9em” header_3_font_size=”23px” header_4_font=”||||||||” header_4_font_size=”16px” header_4_line_height=”1.5em” header_5_font_size=”14px” custom_margin=”||||false|false” custom_padding=”|20px|||false|false” hover_enabled=”0″ border_color_left=”#ff6317″ sticky_enabled=”0″] The development of a digital solution\/product usually starts once its value is clarified\/confirmed. Software development can get quite capital-intensive, therefore:<\/p>\n clarify the functions\/features Once the functions and features are clearer, the technology selection is usually up to the software development team, unless you have specific constraints. For example, you might already have an Azure<\/a> account\/subscription, in which case it makes more sense to stay within the ecosystem than move over to AWS<\/a>; or your maintenance team already uses .NET, which makes Java a non-choice, etc.<\/p>\n At Berg Software, we first define the \u201chigh level\u201d architecture of the big elements (e.g., frontend, backend, possibly some separate services such as authentication, reporting etc.). Then, we split these into modules with their detailed, local architectures.<\/p>\n By setting up a modular architecture, we make sure that it\u2019s adaptable to future iterations. Just like technology, architecture is not something you change every few weeks \u2013 but there will be situations when change is needed.<\/p>\n Now that functions and features, technology and architecture are clear, you can start developing based on a release plan and an iteration plan. Both of these plans should benefit from active, regular planning.<\/p>\n First, there is a chance that your internal team will partner with an external service provider, in a software outsourcing<\/a> setup that provides flexible access to skills:<\/p>\n Working in small, frequent iterations has its own benefits, but it is only a part of a bigger picture. At Berg Software, we do software development based on Agile\/Lean principles, and Continuous Delivery\/Continuous Integration flows:<\/p>\n Before any code is written make sure that the software development team understands your business goals and desired functions\/features set, then translates them into building blocks such as technologies, architecture, iterative plans and frequent deliverables. This way, you will be in full control when it comes to timeline, quality and the ability to change things if\/when needed.<\/p>\n Read more \u2192<\/a><\/p>\n[\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=”4.7.7″ custom_margin=”||||false|false” custom_padding=”||||false|false” border_color_left=”rgba(0,0,0,0)”][et_pb_column type=”4_4″ _builder_version=”4.4.1″][et_pb_gallery gallery_ids=”7383″ fullwidth=”on” hover_icon=”%%186%%” _builder_version=”4.7.7″ _module_preset=”default” max_width=”65%” module_alignment=”left”][\/et_pb_gallery][\/et_pb_column][\/et_pb_row][et_pb_row use_custom_gutter=”on” _builder_version=”4.7.7″ custom_margin=”||||false|false” custom_padding=”6vh||0px||false|false” border_color_left=”rgba(0,0,0,0)” locked=”off”][et_pb_column type=”4_4″ _builder_version=”4.4.1″][et_pb_text _builder_version=”4.7.7″ text_font=”||||||||” text_font_size=”1.1em” text_line_height=”1.6em” quote_font=”|700|||||||” quote_text_align=”left” quote_font_size=”16px” header_2_text_color=”#ff6317″ header_2_font_size=”1.5em” header_2_line_height=”0.9em” header_3_font_size=”23px” header_4_font=”||||||||” header_4_font_size=”16px” header_4_line_height=”1.5em” header_5_font_size=”14px” custom_margin=”||||false|false” custom_padding=”|20px|||false|false” hover_enabled=”0″ border_color_left=”#ff6317″ sticky_enabled=”0″] \u201cMost start-ups don\u2019t fail because they can\u2019t build a product. Most start-ups fail because they can\u2019t get traction.<\/em>\u201d That\u2019s why we looked into several strategical and tactical aspects of traction:<\/p>\n In order to define your positioning, you need to clarify:<\/p>\n In order to get market traction, a digital product first has to appeal to Innovators and Early adopters:<\/p>\n \u2014 The innovators<\/span> search for new technology products. Winning them helps to bring endorsements, which in turn helps to reassure the further groups on the market. Do you know where you need to focus (i.e., what are the most important metrics for your customer acquisition)? Try a \u201cgrowth equation\u201d.<\/p>\n Let\u2019s say you are Amazon, so \u201cyour\u201d equation might look like this:<\/p>\n Vertical expansion There are many tools and places to reach potential clients, ranging from paid, to \u201corganic\u201d, to \u201cviral\u201d. Depending on the problem, try experimenting with the most appropriate channel(s), for example:<\/p>\n Read more \u2192<\/a><\/p>\n[\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row use_custom_gutter=”on” _builder_version=”4.7.7″ custom_margin=”||||false|false” custom_padding=”6vh||0px||false|false” border_color_left=”rgba(0,0,0,0)” locked=”off”][et_pb_column type=”4_4″ _builder_version=”4.4.1″][et_pb_text _builder_version=”4.7.7″ text_font=”||||||||” text_font_size=”1.1em” text_line_height=”1.6em” quote_font=”|700|||||||” quote_text_align=”left” quote_font_size=”16px” header_2_text_color=”#ff6317″ header_2_font_size=”1.5em” header_2_line_height=”0.9em” header_3_font_size=”23px” header_4_font=”||||||||” header_4_font_size=”16px” header_4_line_height=”1.5em” header_5_font_size=”14px” custom_margin=”||||false|false” custom_padding=”|20px|||false|false” hover_enabled=”0″ border_color_left=”#ff6317″ sticky_enabled=”0″] The benefits that got your digital product\/service adopted by the first wave of innovative users\/clients are not the same that will get you traction with the mainstream market. At this point, you will most likely face very pragmatic individuals who will prefer to wait, instead of debugging your product \u2013 and therefore look for a safer, slower, measurable-benefits adoption. They will want a mature, standardized digital product\/service \u2013 which in turn, should boost your growth and profits (through bigger sales volumes at lower development costs).<\/p>\n In this technological age, one should feel comfortable using cloud.<\/p>\n For example, AWS covers everything(?) from storage, computing, migration and security; all the way into specifics like developer tools, IoT\/internet of things, ML\/machine learning and management & governance.<\/p>\n In their own words<\/a>, \u201cAWS can seem overwhelming. A cloud-native paradigm of building infrastructure can be a radical departure from the traditional on-premises way of doing things.<\/em>\u201d<\/p>\n We are proponents of software outsourcing<\/a> and custom software development<\/a>, in order to provide software development skills in a flexible, scalable manner.<\/p>\n Why software outsourcing?<\/p>\n2. How do you create, evaluate and manage digital value (2\/5)<\/h2>\n
Where does digitalisation create value?<\/h3>\n
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How can you assess the value of digitalisation?<\/h3>\n
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What is your digitalisation flight plan?<\/h3>\n
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3. How do you do software product development\/management?<\/h2>\n
3.1. Establish the functions\/features setup, to result in a level-zero plan \/ roadmap<\/h3>\n
\u2193
choose the appropriate technologies
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define the architecture
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execute tasks
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repeat<\/p>\n3.2. Pick your technology<\/h3>\n
3.3. Architecture definition<\/h3>\n
3.4. Tasks, To Dos, Planning<\/h3>\n
3.5. Capacity<\/h3>\n
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3.6. Development<\/h3>\n
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4. How do you go to market?<\/h2>\n
Strategical points<\/h3>\n
Positioning<\/h4>\n
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Technology adoption lifecycle<\/h4>\n
\u2014 The early adopters<\/span> are usually not technologists but appreciate and understand technology as a source of competitive advantage for their own businesses.<\/p>\nTactical points<\/h3>\n
Targets & the growth equation<\/h4>\n
x Product inventory per vertical
x Traffic per product page
x Conversion to purchase
x Average purchase value
x Repeat purchase behaviour<\/span>
= Revenue growth<\/p>\nChannel fit<\/h4>\n
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5. How do you scale?<\/h2>\n
Scale your business<\/h3>\n
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Scale your technology<\/h3>\n
Scale your team<\/h3>\n
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