Services Products Play in Digital Transformation
The digital transformation of the business landscape has transformed the way organizations do everything from executing internal operations to providing customer service. The digital tools that enable these changes are helping to disrupt long-held business models and create new opportunities for companies that embrace digital transformation.
One area that is being upended by the digital revolution is our ideas about where service begins and ends. The digital era has been upending the traditional roles of customer service in ways that go far beyond making call centers and in-store service desks run more efficiently with the help of automations and AI. Using social media to provide customers with self-service options, offering 24/7 customer support through chatbots and delivering personalized content in the context of any interaction are all examples of how embracing the digital era can change where service starts and stops.
While the term “service product” has been around for a while, it is still not well understood by many businesses. A service product is a type of intangible good that is produced and consumed simultaneously. It is different from a physical product in that it cannot be inventoried and must be delivered as it is being created. It also differs from a service in that it is typically a collaborative experience that involves the customer, unlike a service that may be offered by an employee or contractor.
What Role Do Services Products Play in Digital Transformation?
Services products are a critical part of any business, and the use of digital tools is making it easier for companies to deliver them in a more cost-effective manner. For example, the use of automation and AI can reduce labor costs while reducing error rates. It can also be used to cut down on time spent in laborious, menial tasks so employees can spend more of their time with customers.
However, the adoption of digital tools must go beyond simply eliminating waste and improving efficiency. It must also be utilized for the purpose of creating a better customer experience and generating revenue. A successful digital transformation initiative should allow companies to use their technologies to offer new services products and create more competitive offers for consumers.
For example, the use of APIs can create a marketplace that connects noncompetitive companies and allows them to share data and functions. This enables them to offer customers more complete solutions, such as an airline that partners with a travel company to allow passengers to sign in with their accounts to access flight information and reservations. This helps to increase the customer’s level of satisfaction and loyalty, as they no longer have to log in to multiple systems.
As with any major change, resistance to digital transformation is inevitable. The best way to minimize resistance is to address the cultural component of the digital transformation and ensure that everyone understands their role in the process. This can be done through leadership training and encouraging change leaders to be vocal advocates of the project. Getting people excited about the potential for improved productivity and a better customer experience will make it easier for them to embrace the new technology.