Dr. Stefan Sambol, managing partner at OMMAX, was invited to give a keynote address on “Digital Business Models & Value Creation” at the 2017 CFO Business Unit Council—Systems and Innovation in Finance, hosted by Airbus Defence and Space GmbH in Munich, Germany, on November 16. He used this opportunity to apply the 6 dimensions of digital business analysis to a number of OMMAX case studies regarding B2B and B2C value creation, as well as the implementation of big data analysis to ensure growth.
Uber yourself before you get Kodak’d
Comprised of a Senior Network from Fortune 500 Companies, and with a particular focus on quality peer discussion between global and cross-functional minds, the CFO Business Unit Council fostered a forum of reflection and growth for a wide range of attending industries. In accordance with this intention, Dr. Stefan Sambol gave a talk on “Digital Business Models and Value Creation,” outlining OMMAX’s various methods of enhancing the work of B2B and B2C service providers, as well as OMMAX’s process of implementing big data analysis in digital business models.
“Thank you very much again for the great and very insightful presentation on digital business models and digital value creation. This was very valuable and highly appreciated by the members.”Lars SudmannCouncil Director of the Business Unit CFO CouncilThe Conference Board
Six dimensions of digital business analysis
In applying OMMAX’s six dimensions of digital business analysis, 1. Market & competition, 2. Business model & strategy, 3. “Digital” customer journey, 4. Customer Economics, 5. IT, data, and reporting, and 6. Organization, Dr. Sambol pointed out the importance of knowing your client’s digital customer journey, or the path towards purchasing a product and the overall customer life-cycle, as well as the optimization of all digital customer touchpoints.
Every business, as Dr. Sambol states, should be aware of the extent to which the customer journey is already driven by “digital” touchpoints with brands today, as businesses should consistently make contact with customers until they finally venture out to the dealer or platform with the intention of buying a product or a service. Dr. Sambol discussed the ways in which the car industry is a great example of this need, arguing that many car brands wholly underestimate the digital role in shaping customers’ buying decisions. He then discussed several examples of industry incumbents who underestimated the power of digital and were suddenly challenged by up-and-coming companies who, in wiping out powerful incumbents within 5 years, disrupted their industries with their digital savviness.
No less than 900 digital touch points in 3 months
Dr. Sambol thus presented “car-buying case study” at the conference—a case in which all activity of potentially new customers was monitored and tracked. He discussed how, throughout the customer path towards purchasing a new car, no less than 900 digital touchpoints were tracked over a period of 3 months – meaning there were 900 opportunities for automotive companies to engage this customer and provide him or her with useful, informative content while answering questions that may have come up throughout his or her online journey – and thus ultimate shape his or her buying decision. These interactions manifest in the form of searches (e.g. what car is the safest, which will fit a family of five, etc.), site visits, video views, and clicks, and they take place throughout Google, YouTube, manufacturer websites, dealer websites, and review websites. As Dr. Sambol notes, with research implying that 6 out of 10 car shoppers enter the market unsure of which brand to buy, one can only imagine the influence that an effictive digital approach can have in shaping customer buying decisions.
In regards to fostering value creation for B2B business service providers, Dr. Sambol referred to OMMAX’s work with its client, Waterlogic—an industry leader in purified water dispensing with a yearly revenue greater than 300 million euro. Waterlogic’s object was to shift from a primarily offline sales model towards a digital sales model. Through a careful analysis of the client’s customer journey and the establishment of a scalable IT platform, tracking analytics, and a CRM system, as well as through introducing a conversion-optimized platform design and the automization of sales funnel, OMMAX’s country-specific improvements of Waterlogic’s digital presence increased conversions by 756%, increasing the return on investments tenfold, decreasing the bounce rate by 8%, increasing the percentage of lead to sale ration from 20% to 30%, and increasing site visits by 210%. In fact, 1/3 of Waterlogics current growth is initiated digitally throughout 12 countries.
Digitization Across All Industries
OMMAX applied a similar yet specialized approach to its client Hoesch & Partner – one of Germany’s largest insurance brokers. In analyzing the digital market, setting up a digital marketing campaign across organic and paid channels, researching user behavior, hiring a Chief Marketing Officer, and establishing scalable IT infrastructure, thus optimizing both a digital presence as well as a system of tracking and reporting, OMMAX has thus far increased Hoesch & Partner’s sales more than 124% in less than one year. This sales increase has been a result of a 109% increase in leads, 200% increase in visits, 129% increase in calls, and 20% increase in digital reach, all of which have been established through OMMAX’s application of the six dimensions of digital business analysis.
Dr. Sambol additionally discussed the six dimensions of digital business analysis in relation to the digital optimization of direct-to-customer businesses, such as OMMAX’s client, gastrotiger. Through the relaunch of new platforms across 8 countries and 6 languages, OMMAX increased gastrotiger’s online revenue by 65% from the previous year with a 190% increase in site visits, 95% more transactions, an increase of 38% in the Google Shopping conversion rate, and an increase in 33% of the paid traffic conversion rate.
Furthermore, Dr. Sambol discussed the ways in which big data can be implemented into business models, as well as the pitfalls and prerequisites associated with doing so. He also highlighted the importance of keeping up with digital trends, speaking to the fact that mobile optimization should be given priority as users spend an increasing amount of time on their mobile devices rather than desktop. In regards to digital trends, Mr. Sambol also touched in the growth of voice search in recent years, as well as the ways in which businesses can utilize both virtual reality and artificial intelligence to enhance the customer journey and subsequent sales.
All in all, the CFO Business Unit Council, themed “Systems & Innovation in Finance,” enabled the world’s leading CFOs to congregate and discuss a number of shifting trends and upcoming innovations in the world of finance. This facilitation of transferring knowledge and perception speaks to businesses’ growing need to remain updated on the constant advancement of digital trends and breakthroughs – a topic on which Dr. Stefan and OMMAX as a whole are well-versed.
Here are some photos taken at the hosting location, Airbus Defence and Space GmbH: