Space D: Preserving core business and inspiring with innovation
Well-established companies know their markets and customers well, cultivating close and trustful relationships. That is true especially for b2b companies. Due to their high customer retention, deep customer insight can be achieved with little effort. Customer problems can be identified, enabling products and services to be adapted to their needs. European companies are broadly experienced in discovering customer needs and creating well-adapted solutions.
Establishing the required competency within the company or finding it in cooperation with an outside agency may pose a challenge. Nevertheless it can be worth the effort. In most cases it is still easier to find experienced developers for digital solutions than to find a new market.
Advantages of space D strategies
The biggest advantage of space D strategies is that projects can lean on a stable and trustful customer relationship. Even if solutions might be a little bit erroneous in the beginning it is still possible to test them with benevolent customers to gain valuable insights that new market entrants can hardly ever generate. At this point the market position of the company supports the digital strategy and defends it against competitors intruding from different markets, at least for a while.
Risks of space D strategies:
Of course it is possible to fail and damage the reputation if the solutions fall a long way short of expectations. It helps to deploy an iterative course of action and customer engagement as mentioned before. Testing should take part with trusted customers before being extended on a broader basis.
Success factors in space D
An indispensable basis for space D strategies is to know potential customers and their unmet needs very well . Extensive research and insight into customer needs, demands and perceptions before starting a space D project will pay off. The better a company understands customers and their situation, the more convincing the solution will be.
Development should be iterative instead of ballistic. Prototypes can be tested with customers and qualified feedback can be gained. Tests and prototypes should be communicated transparently to reduce exaggerated expectations. If possible companies should try to establish strong cooperation with customers that suffer extremely from a problem your solution will solve. Such a customer will not only be an excellent source of feedback. Parts of the development could be funded instantly.
Overview: digitalization strategies
published: April 24, 2024, © Uwe Weinreich