We have the data, so why doesn't our decision making change?

Many businesses already have a lot of data.

• ▷Sales data

• ▷Customer list

• ▷Purchase history

• ▷Inquiry history

• ▷Web access log

Despite this, we hear voices like this on the ground.

• ▶ "In the end, I don't know what to do."

• ▶ "Judgments are always based on experience and intuition"

• ▶ "I look at the data, but I don't change my behavior"

This is not an uncommon story.
Rather The obstacles faced by most companies embarking on DX .

Business data and "value data" are different things

Here's a key point where many companies get confused.

That is,

Data to run business with
Data to create value is a different thing.

Business data is

• ▷ Number of cases processed

• ▷Working hours

• ▷Quantity in stock

• ▷Cost

This is information used to measure efficiency.

On the other hand, value data is

• Why did customers choose it?

• ▶ Where did you get confused and where did you come to a decision?

• What were you satisfied with and what were you dissatisfied with?

This information relates to the reasons behind such decisions.

Most IT investments are biased towards the former,
The latter is barely addressed.

Why DX stops at "business improvement"

The reason why digital transformation in Japanese companies is not leading to results is clear.

The target of IT investment is

• ▷Business process

• ▷ Internal efficiency

• ▷Cost structure

Because you're too focused on

Now

• ▶ Work becomes easier

• ▶But the customer experience remains the same

• ▶As a result, neither sales nor differentiation are generated.

This results in the following situation.

DX does not end with business reform.
What is the true meaning of DX?

Changing the quality of decision-making

What is knowledge creation?

The important thing here is,
"Knowledge creation" That's the idea.

Knowledge creation is

• ▷Collecting data
  　Not.

Interpret and give meaning to data
Process leading to next action

It refers to that thing.

In other words,

• ▶Information → Awareness

• ▶ Realization → Hypothesis

• ▶Hypothesis → Action

• ▶ Action → Verification

Continuing this cycle,
It is knowledge creation.

The main player in knowledge creation is the customer

So what should knowledge creation be centered around?

The answer is clear.

Creating knowledge with the customer at the center

Not a product, not an organization,
Customer experiences, emotions, and behaviors You need to think from the beginning.

• ▷ Why has the number of inquiries increased?

• ▷ Why did this customer leave?

• ▷Why did you choose our company over price?

They are,
You can never know by just looking at business data.

CRM is the IT infrastructure that supports knowledge creation

Here for the first time,
CRM (Customer Relationship Management) The essential role of

CRM is

• ▶Tool for centrally managing customer information
  　Not.

A foundation for continually creating customer knowledge

.

born at the point of contact with customers,

• ▷Conversation

• ▷Action

• ▷Emotions

• ▷Context

These are accumulated and combined,
Make it possible to share information across the entire company.

Thereby,

• ▶Sales

• ▶Marketing

• ▶Service

• ▶Management

Every decision is made
Customer-oriented You will be able to do this.

Where should we place the focus of IT investment?

The question of future IT investments is,

Which operations have been made more efficient?
not
How much understanding of customers has increased

.

Companies that cannot invest in knowledge creation

• ▷The more data there is, the more confused I become

• ▷The more systems there are, the more immobile we become

This creates a vicious cycle.

Next episode preview: Why CRM now?

next time,
From the perspective of changes in the market, consumers, and values,

• ▶Why CRM is essential for management now

• ▶Why customer-centricity has become the norm

• ▶ Why CRM has become a "prerequisite" rather than an "option"

I will explain.

Click here for Arcus Japan Co., Ltd. CRM⇩

Arcus Japan CRM - Arcus Japan Inc. - A leading CRM company and IT consulting firm