By Gideon Malherbe, VCI Founding Partner
Here’s a fundamental test for your company’s Digital Transformation in 2020.
First, on the negative side – What elements of your offering are going to see a deterioration in revenue or price due to digital disintermediation/automation during 2020?
(For example, most stock broking firms had to let go of their transactional costs in 2019 and now offer this service for free.)
Second question, on the positive side – What portion of your operations costs can you disintermediate this year, thus directly adding to your margin?
(For example, dispatch was totally automated in 2019, thus saving substantial overhead costs in scheduling work.)
Then, the most important question – Where can you add revenue to your existing market by offering a near-zero marginal-cost element of value to your offering?
(For example, a premium priced product that includes insurance and real time tracking.)
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