In an exclusive interview, we dive into insights provided by Charisma Glassman, a seasoned senior executive, C-Suite, and board advisor at a global consulting firm based in New York City. With more than twenty years of international experience in leading marketing, operations, technology, and strategic transformations, Glassman provides a unique perspective on the crucial role that digital transformations play in redefining business models and encouraging innovation in today's rapidly changing business environments. Our conversation begins with a pivotal question: Why should corporate leaders prioritize creating strategies for digital transformations?
In response, Glassman states an interesting fact: "The length of time that corporations remain in the Fortune 500 list after being added is decreasing steadily. From an average of 33 years in the 1960s, the timespan that companies spend on this list has dropped to 16 years as of 2021. This shortening of corporate dominance is mainly due to technological advancements that disrupt predominant business models." She highlights key instances, such as the internet's transformative effect on retail and the ubiquitous impact that smartphones have had on shopping and the consumption of entertainment.
In delving deeper, we inquire whether technological innovation or changes in customer needs drive the displacement of these market leaders. Glassman mentioned, "It is a combination of both. As technologies evolve, they empower businesses to offer superior and differentiated experiences in providing their products and services, thereby better adapting to customer needs. Consequently, when companies fail to leverage these technologies, they face the risk of customer attrition or disruption by competitors." Glassman elaborates further, "When assessing sets of technologies, I evaluate their potential based on the '3C model for digital disruption'. If the technology can provide a Customized experience that delivers truly beneficial Convenience through the customer's preferred Channel, then it stands a good chance of creating digital disruption to a company's business model."
To expand on her thoughts regarding digital disruption, Glassman highlighted an example involving a top-ranked U.S. credit card bank that expanded its business model through an online shopping service provided via an app, websites, and web browser extension. Glassman states, "Here, the innovative service greatly assisted customers in reducing the time-consuming steps of bargain hunting online and applying checkout coupons." Furthermore, she described how this aligned with the 3Cs model by stating, "The bank discovered that by tailoring the app to customers' shopping interests through AI algorithms and enabling customers to monitor deals on products they were interested in, they achieved Customization. Additionally, by streamlining the online shopping process through automated searches for the best deals across websites and applying coupons, the bank achieved a higher level of Online Shopping Convenience. Finally, by delivering the service via a mobile app, website, and browser extension, they matched the customer's preferred delivery Channel." In total, this digital innovation garnered 10 million users in 100,000 participating stores and enhanced the bank's reputation and competitive standing.
Glassman provided another illustration of an online grocery delivery app that extended its business model via the 3Cs model. Here, a U.S.-based delivery giant furthered its lead by incorporating AI-powered product recommendations, multi-store shopping, quick repurchase options, and flexible delivery times. In particular, she mentioned, "Customization was facilitated by their AI algorithm, which learned and displayed preferred stores, brands, and products throughout the shopping experience. Next, Convenience was increased by offering flexible delivery time windows, ranging from same-day to specific days of the week. This was complemented by speedier reordering, enabling purchases from multiple stores for a single delivery, and the ability to track delivery drivers' locations. Finally, the Channels were reinforced by multi-lingual support, voice-based ordering, and mobile app or mobile web-based support." Here, the company was able to structure new features and services according to the 3C model, resulting in a holistic digital transformation that further cemented its dominance.
We believe Glassman encapsulated her insights most effectively with this quote: "Digital disruptions constantly emerge, fueled by technological innovation. Executives leading companies must strategically plan comprehensive digital transformations to uncover opportunities to drive groundbreaking new business model innovations and gather market share."
