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How can companies digitalize themselves in a meaningful way, develop value-adding digital business models and profitably use technology? Steven Bailey, Chief Strategy Officer at AOE, addresses this question with concrete business cases in aviation that can be easily transferred to other industries (including a video of his presentation at DMEXCO 2019).
We all know: For companies, digitalization means both opportunity and risk. New digital solutions are revolutionizing markets in all industries, and those who stop and don’t reinvent themselves lose out. Companies have to keep an eye on the markets, accept changes and react flexibly to them.
Here are some concrete examples from the aviation industry: The travel retail market is changing completely; previously successful duty-free and in-flight shopping concepts are steadily losing their impact on the bottom line. Spend per Passenger is decreasing, despite globally growing passenger numbers. While in the past, passengers primarily made impulse purchases, purchasing behavior has clearly developed into a mainly planned shopping behavior – a development clearly support by data from current market studies. For market participants – airports, airlines, travel retailers and brands – this means a complete reorientation in the market.
The same applies to other industries: Companies must operate cost-effectively and at the same time offer high-quality services and products, taking increasing speed of innovation and customer expectations into consideration. New vendors and business models are entering the market, forcing flexibility, change and realignment from companies.
At the same time, this reorientation in the market also offers a wealth of opportunities for companies. Companies can analyze customer behavior based on data, actively design digital business models and customer benefits, and combine services. The aim is to build trust with different touchpoints on different channels along the entire customer journey. Digitalized processes make companies more efficient, more cost-effective and can open up new business areas.
Specific results of digitalized processes from the aviation industry:
Digital models such as the ones mentioned above can be established in all industries – for this, the corresponding potentials must be identified and suitable models developed.
These five examples provide an insight into how technology can also transform digital business models in other industries and create added value. The use of appropriate solutions is an important part of this. We have developed the Omnichannel Marketplace OM³ for the aviation industry. For other industries, especially for companies with a strong B2B focus, we recommend the B2X Commerce Cloud.
Another decisive point: the meaningful use of data in real time. Customer data is the coin of the realm for data-driven E-Commerce. It enables targeted, audience-specific customer communications, personalized promotions and creates more reach. Taking aviation as an example: business travelers have different needs than those going on vacation, and Asian passengers have a different buying behavior than European ones. Depending on the target audience, airports can offer suitable products and services, such as lounge access for business travelers and discount campaigns for passengers on holiday. If travelers are late, fasttrack booking can be offered automatically. Through loyalty program integration, purchases can be rewarded, e.g. VIP services or upgrades from 1,000 loyalty points onwards. Here again, there is a clear focus on added value for the customer.
For companies, technology is an important component for securing the future in order to be able to model future business models and react flexibly to market changes. Companies must create the necessary conditions to remain successful and competitive in the future. Flexibility, innovative business models and the use of appropriate technologies are the most important cornerstones to look confidently into the future and to continue to build trust.
Composable business is an interplay of IT architecture, technological solutions and the corresponding mindset. Steven Bailey explains in an article at ComputerWeekly why exactly this enables telco companies to make a push toward digitization.
Knowledge of products that are frequently bought together enables companies to offer their product range in a targeted and customer-oriented manner. In etailment, Steven Bailey & Steffen Kopmeier explain how.