How should enterprises digitize?

Let’s start with the barrel theory. The barrel theory means that in a bucket, the shortest board determines how much water your bucket can hold. Therefore, when running a business, you must find the shortest board. The pro version of the barrel theory completely changed this statement, changing it to the longest board in the barrel as the direction for the enterprise's efforts. I think both are right. And the shortest board and the longest board are the focus of enterprise digitalization.

Let’s solve the longboard problem first. The person in charge of an enterprise must have a deep insight into the business direction of the enterprise. They know where the driving point of the enterprise's rapid growth is, and they know which accelerator to step on to enable the enterprise to develop rapidly.

Whether an enterprise can grow rapidly depends half on whether the strategic direction of the person in charge is correct.

However, the person in charge of the company has formulated the strategic direction and found the driving point. Will the company be able to implement this strategy? The answer is obviously no, which is why so many bosses in the market are constantly preaching about execution, but in fact, their strategic ideas are not implemented. Then, in addition to constantly instilling the idea of execution in subordinates, a better way is to go digital.

The first role of digitalization is to describe the company's strategic thinking in terms of digital goals, observe the execution of intermediate nodes, solve various problems encountered along the way, and formulate assessment reward and punishment plans, with the goal of ultimately achieving strategic goals. For example, if the company's strategic goal is to put 100 elephants in the refrigerator, then it should pay attention to how many refrigerator doors are opened (Indicator A), how many elephants are put into the refrigerator (Indicator B), and finally How many refrigerator doors are closed (Indicator C). Only by implementing the entire process from indicator A to indicator C can we ultimately ensure that strategic goals are achieved.

Compared with before digitalization, the process of achieving strategic goals is easier to track. Overall, the possibility of achieving strategic goals is greatly improved.

Then solve the shortcomings. The person in charge of the enterprise must not only find the driving point for the rapid growth of the enterprise, but also need to promptly discover various loopholes in the development of the enterprise. These loopholes are the short boards of the barrel. If a board is short and leaks, the enterprise will run very fast. It will also fall very hard.

The second major role of digitalization is to observe various business indicators of an enterprise in real time and discover loopholes in time to facilitate timely correction and avoid the emergence of shortcomings in the barrel. For example, whether there is a lot of waste in the company's marketing and advertising investment, whether channel expenses are spent in appropriate scenarios, whether the development progress of new products is delayed, whether the expansion of production capacity can meet business needs in the second half of the year, and whether channels Whether the pressure of goods exceeds the normal water level, etc. (Most of the above indicator monitoring are also real cases of field 365 customers)

The more popular digital technology now can greatly improve work efficiency. Compared with the previous two levels of functioning [Tao], efficiency improvement belongs to the level of [Art]. For example, improving the efficiency of reimbursement, improving the efficiency of customer acquisition, improving the efficiency of salary calculation, etc. When these digital tools mature, they will be adopted by most companies.

Digital management of enterprises will be an essential scientific method for enterprise management in the new era.