SALES AND DIGITAL TRANSFORMATION: A FRAMEWORK FOR CHANGE

CE-SALESCONSULTING 2016

Sales and digital transformation: a framework for change

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Digital Transformation requires a strategic framework that takes into account business model, market, customer and corporate digital vision. The transition is implemented following the requirements of a customized process model.

Challenge

Business challenges and achievable benefits of digital transformation are discussed controversial in top management circles.

• Revenue, profit and cost-saving potential of digital transformation are often not transparent.

• New investments in innovative technologies are more critically examined than investments in traditional areas, such as production.

For prospering companies in a positive economic environment the urgent need for a transition to digital processes is often not obvious. No pain, no gain.

Some industry opinion leaders recommend to force digital transformation by an full exchange of traditional workforce, eliminating hierarchical leadership and offering the so-called out of box thinkers more freedom to act. This is a severe misunderstanding of the todays corporate business situation.

Following this advise would mean that

• the process of digital transformation stretches over years and never comes to fruition as changes in workforce cannot yield short-term results. • to abandoned a successful business model for an untested new one is a very risky business. • it would allow esoteric flavoured wishful thinking to find its way into an existing business model that had already proven itself in reality.

Executives are right in not blindly following “trend gurus”, nor rushing into commodity digital start-up

business models or following the esoteric advise of net activists.

Yet one genuine problem of organizations is that they are rather sceptical regarding any change or status modifications. They have a natural systemic inertia that should not be underestimated. This becomes even more apparent, the more successful organizations are.

Sales and digital transformation: a framework for change

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Abandoning proven success patterns and introducing new structures, processes or technologies is naturally more complex if there is no external pressure, such as margin erosion or declining revenue.

In addition, many managers have a certain aversion towards the "Everything goes" pitch made by some industry gurus. As every year, dozens of new technologies are marketed with great effort, CxOs develop a advisory resistance when another business salvation promise is delivered.

Many obstacles must be overcome to achieve a successful digital transformation. Particular attention should be given to major implementation projects whose flop probability increases with size and scope.

It is therefore recommended to systematically plan changes and set priorities. It is particularly important to test new methods and processes in order to verify their business contribution. And digital transformation projects must be evaluated as any other investments: Are the expected potential benefits achieveable?

Framework

Digital transformation in sales should start with an status assessment in order to determine strengths and weaknesses, assess risks and challenges and quantify business potential.

Digital transformation relates to sales structures and processes. A strategic decision what has to be implemented is mandatory, whether it is about modifing processes, expanding sales skills, or implementiong agile projects structures.

Digital Transformation requires a strategic framework that takes into account business model, market, customer and corporate digital vision. The transition is implemented following the requirements of a customized process model.

Process model

The following model has demonstrated its feasability for the digital transformation in sales:

• Determining the digital status

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• Developing a strategic vision • Assessing benefits, costs and risks • Creating a roadmap • Planning, implementing and monitoring projects • Establishing feedback loops: assessing the progress and adjusting the implementation

A company-specific framework and a pragmatic process model are key requirements for a successful digital transformation in sales.

About the author

Dr. Manfred Kauffmann is Managing Partner at CE-Salesconsulting.

Contact Email kauffmann@salesberatung.com Phone: + 49-89-66 81 12 Mobil: + 49-170-773 36 30 CE-Salesconsulting 81 541 Munich Mariahilfstrasse 24 http://www.ce-sales-consulting.com