7 Big Problems in Marketing: #3: The Digital Transformation of the Modern Corporation

by | Feb 13, 2017 | News

Digital issues focus on pressing managerial problems at multiple levels of analysis. Our belief is that marketers have taken a very narrow view—examining social media, Big Data and the transformation of marketing communications. However, at the C-suite level, corporate executives are focused on much larger issues of business model change, survival and future competitive advantage. This is very evident in the world of banking and retail. However, even traditional industrial firms such as GE are transforming themselves from “dumb” to “smart” within the Internet of Things.

Key questions include:

▶  HOW WILL WINNING FIRMS COMPETE IN THE FUTURE?

In almost every industry, firms are moving from products to information and service businesses. It does not mean “products” disappear. Rather, they become the vehicles and platforms for information-based businesses. Nowhere is this more evident than in health care. We are seeing the migration of patients from hospitals to homes, with attendant monitoring and care through information-rich technologies.

▶  HOW DO THE FIRM’S INTERFACES WITH MARKETPLACE (E.G., COMMUNICATIONS, SALESFORCE) AND WITHIN THE ORGANIZATION ITSELF (E.G., INTERNAL CROWD-SOURCE INNOVATION, GAMIFICATION OF LEARNING AND DEVELOPMENT, FLATTENING OF THE ORGANIZATIONAL HIERARCHY) CHANGE AS A RESULT OF DIGITIZATION?

Our key point here is that the entire organization is changing, not just the interfaces with customers. Structures, processes, workflow and decision right are being transformed due to digitization.

▶  HOW WILL IT/COULD IT AFFECT MY BUSINESS MODEL?

What are the types of new business models that are emerging? Is one type of business model superior, or does it depend on context?

▶  WHAT SHOULD IMPACT THE WAY I COMMUNICATE AND INTERACT WITH CUSTOMERS?

Formerly this was largely a one-way communication; now customers are taking control of the products, services, interfaces and communications. It is shared communication, not only between the firm and customers but between actors in the marketplace (e.g., customer to customer).

▶  HOW DO I USE SOCIAL AND OTHER DIGITAL MEDIA TO BOTH GENERATE NEW INSIGHTS ABOUT MY CUSTOMERS AND COMPETITORS?

Can I also use it to track my marketing performance?

▶  HOW DO I FIGURE OUT THE SCALE AND SCOPE OF WHAT IS POSSIBLE FOR MY COMPANY AS A RESULT OF EXISTING AND EMERGING DIGITAL TECHNOLOGIES?

Read the original article at AMA.org

This spring, we’re unveiling the AMA’s first ever intellectual agenda in our almost 80-year history that features what we believe are the “seven big problems” confronting marketing. The seven big problems will drive content for the entire AMA community: a multi-faceted and diverse group of professionals in marketing and sales, academic researchers and educators, and collegiate marketing hopefuls.

The AMA’s intellectual agenda seeks to serve as a big tent source of guidance and inspiration that includes both theoretical and applied knowledge that will ultimately provide actionable insights, frameworks, tools and resources for the AMA community. We’ve created a living document that can evolve along with the AMA community and the discipline of marketing itself.

–Russ Klein, AMA CEO

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