Designing Digital Organizations

Designing Digital Organizations

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Designing Digital Organizations

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  • Customer Experience

    Asked to name the most important change they could apply to their business, many companies cited the need to make the customer experience more digital. In fact, in many cases, the companies started the redesign of their business and operating models by reimagining the customer experience. Another participant in the Davos panel, Kaiser Permanente CEO Bernard Tyson, described the profound change that has resulted from the company’s use of analytics to improve customer engagement. These steps include providing online access to medical records and enabling transactional capabilities and secure interactions with physicians.

    The following characteristics shape the ways that digital companies address the customer experience:

    • Digital companies address the total customer experience. The scope of the design changes includes all customer journeys (for example, learning, buying, provisioning, using, billing, paying, and support). It crosses all business units, product and service lines, and channels. If an ecosystem of partners provides the experience, the design changes are applied to all participants.

    • Digital companies integrate digital and physical elements. The target design includes experiences that are both completely digital (such as streaming a Netflix show) and partly digital and partly physical (for example, using a mobile app to refill a prescription and then picking up the medicine at a pharmacy).

    • The customer experience becomes the primary driver of product and service design. Companies actively coordinate the design of products and services with the design of the customer experience. Some, such as the financial services company USAA, reorganize the entire product and service mix, transitioning from product silos (for example, insurance policies and mortgages) to customer life events (such as the birth of a child or the move to a new house).

    • They rely on ready access to customer data. All the company’s data on customers and the customer experience (of individual customers as well as groups of similar customers) is made available throughout the company and used to tailor the customer experience. Data includes previous encounters and interactions, products and services used, and information sourced from third parties, such as partners and social media.

    • They use state-of-the-art digital interface design. From the point of view of customers in any industry, the digital aspects of the experience need to be as smooth and easy as the best digital experiences served up by the likes of Amazon and Apple. They also need to work consistently across all devices, including mobile phones, tablets, computers, kiosks, set-top boxes, and automobile multimedia systems.

    • They exploit social media and communities. Digital companies create customer communities on social media sites such as Facebook and LinkedIn, which allow customers to interact with them and with each other. And companies can learn and collect data from such interactions. Some companies create communities specifically for their customers: for example, Intuit provides TurboTax AnswerXchange, and John Deere offers YouTube videos.