Introduction
Companies must be agile and flexible to survive as the business environment becomes more complex. Agility and flexibility are two of the critical advantages afforded by a digital organisation — an organisation that manages its digital touchpoints as part of its overall business strategy. Digital organisations focus on fast response and ongoing modernisation of their applications and systems. The ability to quickly adapt to changes in the marketplace is an essential feature of any digital business model. It is also challenging because it requires strategic decisions at the most senior levels within any organisation. Streamlined interactions between internal IT departments, external suppliers, and customers are at the heart of a modern, digital supply chain which increases efficiency, reduces costs, and enhances customer relationships. But what does this mean for distribution? Will it become more automated, or will people continue to play a vital role in successful operations?
Companies must be agile and flexible to survive as the business environment becomes more complex.
As businesses become more complex, companies need to be agile and flexible to survive. This means that they need to be able to respond quickly to changes in the marketplace and adapt quickly.
It’s essential for companies of all sizes – from start-ups to multinationals – because technology is changing so rapidly that it will be impossible for any company not to change its business model at some point.
Agility and flexibility are two of the critical advantages afforded by a digital organisation — an organisation that manages its digital touchpoints as part of its overall business strategy.
Digitalisation has changed the way businesses work and connect with customers. It offers two key advantages: agility and flexibility. Agility, in this context, is the ability to respond quickly to new opportunities or threats; flexibility refers to adapting your business model over time in response to changing circumstances.
These are core drivers of digitalisation — and are often overlooked by those who don’t see their company as “digital” at all. But even if you don’t consider yourself a “digital” organisation, it’s essential not only that you understand these principles but also apply them within your business environment wherever possible.
Digital organisations focus on fast response and ongoing modernisation of their applications and systems.
Digital organisations focus on fast response and ongoing modernisation of their applications and systems. This is true for two reasons:
- Flexibility. Digitalisation has changed the way businesses work, and flexibility is essential. To stay competitive in today’s market, organisations need to be agile and flexible in how they do business—and digital organisations are no exception.
- Efficiency. Digitalisation can also help companies operate more efficiently by reducing costs, enhancing customer relationships, improving decision-making and problem-solving skills, increasing productivity, improving employee satisfaction levels through better management tools, etcetera.”
The ability to quickly adapt to changes in the marketplace is an essential feature of any digital business model. However, it is also challenging because it requires strategic decisions at the most senior levels within any organisation.
The ability to quickly adapt to changes in the marketplace is an essential feature of any digital business model. However, it is also challenging because it requires strategic decisions at the most senior levels within any organisation.
One critical advantage of a digital organisation is the ability to change rapidly and effectively. How can you ensure that your distribution model will allow you to act quickly enough?
Streamlined interactions between internal IT departments, external suppliers, and customers are at the heart of a modern, digital supply chain which increases efficiency, reduces costs, and enhances customer relationships.
Your company has a business model and distribution model. Your business model determines how you create value for your customers, while your distribution model dictates how that value is delivered to the customer.
For example, McDonald’s has a business model built around fast food; its distribution model consists of fast-food restaurants. As another example, Apple sells high-end consumer electronics in retail stores; its distribution model is based on selling products directly to consumers through stores and online sales channels like its website.
A modern supply chain is a sophisticated system that connects all parts of the organisation to improve efficiency by reducing costs and increasing customer satisfaction through better product availability at lower prices than competitors can offer
But what does this mean for distribution? Will it become more automated, or will people continue to play a vital role in successful operations?
The pace and impact of digitalisation have been rapid, with traditional business models being disrupted. In many cases, industries that have needed to be faster to adopt new technologies or change customer demands are at a disadvantage against those that have built their companies around the opportunities provided by the digital world. And it’s not just about being able to produce goods more efficiently or offer better customer experiences online; businesses need to rethink how they operate if they want to stay competitive in today’s world.
Distribution is no different: there is no question that eCommerce has revolutionised how companies connect with customers and sell products, but it’s also impacted distribution in ways that can be both good and bad, depending on your point of view.
Digitalisation has revolutionised the way businesses work and connect with customers.
Digitalisation is converting analogue signals into digital signals and vice versa. In this context, it refers to converting from a traditional business model to a digitalised one. This means transforming your business practices, systems and processes into an online environment.
Bottom-Line
If you’re still wondering if your distribution model is fit for purpose, ask yourself these questions.
- Do I have the proper channels to reach my customers?
- Do I plan to expand into new markets or areas where they live?
- How can I optimise my supply chain and logistics?
- How could mobile apps help me streamline operations during peak times?
If you answered “no” to any of these questions, it might be time for a change!
Who am I?
I am Dotun Adeoye, a Business Growth Strategist & Author of the 5 Pillars of Business Growth.
I’ve built up my experience via serial entrepreneurship, consulting leadership roles in business growth, business development and product innovation in large companies worldwide in the last 29 years.
Today, I consult with large businesses on how to sustainably grow their businesses, sustain infinite growth, ensure business continuity and achieve a legacy.
Hire Dotun Adeoye to Speak Virtually or In – Person at your company’s event to cover this or other topics. You can also get in touch via +44 203 097 1718 or dotun at dotunadeoye.com.
