This document discusses the challenges and benefits of business transformation in Kodak Company. It explores the impact of data-driven decision making and the potential challenges faced by the company. The document also highlights the benefits of transformation in terms of customer satisfaction, strategy design, demand prediction, and collaboration.
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Running Head:Question 3: Business Benefits And Challenges QUESTION 3: BUSINESS BENEFITS AND CHALLENGES
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2 Question 3: Business Benefits And Challenges Table of Contents Challenges of transformation.....................................................................................................3 Benefit of transformation...........................................................................................................4
3 Question 3: Business Benefits And Challenges ï‚·Challenges of transformation Data-driven decision-making process in Kodak Company may face several challenges.This company might evaluate demand of customers based on data collected from survey, reviewing feedback and complaints, to redesign customer service. This transformation in decision making may face following challenges, Lack of skilled employees Firstly, this company will face challenges regarding lack of skilled employees. Customers of this era, prefer to have innovative products and existing employees may feel difficulties to develop such products to fulfill needs of customers. As employees are flexible in working with comfort, they may resist this transformation due to data-driven decision making. As mentioned byBrynjolfsson & McElheran (2016),management may face difficulties to make them understand importance of this decision of change. If employees deny improving their professional skill, this aspect may be considered as potential challenge for Kodak Company. Lack of sufficient resources Collection of data requires investment and this company needs to invest capital to modify their current practices of customer service after evaluation of gathered data. At this moment, this company is facing financial loss due to failure in business. Wrong decision making by upper management has caused financial loss of this company. Due to this reason, they are unable to invest capital on this decision at this moment. They are bound to raise fund at first for proceeding with this transformation. Lack of customer loyalty This company has lost many of its customers due to inefficient customer service. They have failed to offer innovative products to customers due to their incorrect decision making. It is challenging for them to invest capital in redesigning of customer service. According to
4 Question 3: Business Benefits And Challenges Cavanillas, Curry & Wahlster (2016),lack of loyal customers may affect confidence level of management of Kodak Company. If customers do not get satisfactory service after execution of this decision, this company may face huge financial loss once again. However, they must overcome this challenge by taking risk of investing in this decision regarding transformation. Benefit of transformation From the matrix, it can be analyzed that during transformation of process several benefits can be achieved in business. Greater ability to know needs of customers: After transformation of the process of customer service various needs and latest trends of customers’ choice can be known by this organization. This can help them to increase satisfaction rate of customers and greater revenue can be earned. Transformation of customer service can help to increase capability of Kodak regarding collection of data from market. Hence, latest technology can be offered to customers and higher rate of customer loyalty can be obtained. Increased ability to design proper strategy: Transformation of data-driven decision- making regarding customer service can help to increase capability of employees to design strategy for offering service to customers. It can be seen that changed data-driven decision making can help employees utilize data and better knowledge about preference and need of customers can be gained. This can help the company to provide more value to customers and this, in turn, can help this firm to gain competitive advantage. Improved ability to make predictions regarding demand: Predictions regarding demand can be made by application of data-driven process of decision making in customer service. As stated byBaesenset al.(2016), proper service to customers can be provided if accurate data and information regarding demand for goods and services can be acquired. This
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5 Question 3: Business Benefits And Challenges transformation can help the business to make proper demand prediction and success in consumer market can be achieved. Increased collaboration: This transformation can help the business to increase collaboration among employees and leaders. As mentioned byLoebbecke & Picot (2015), collaboration is a core factor of organizational culture. Proper collaboration can occur due to implementation of data-driven approach in the process of making decisions. Transparency will increase and rate of internal conflicts can decrease. Hence, proper service to customers can be provided.
6 Question 3: Business Benefits And Challenges Reference list Baesens, B., Bapna, R., Marsden, J. R., Vanthienen, J., & Zhao, J. L. (2016). Transformational Issues of Big Data And Analytics in Networked Business.MIS quarterly,40(4). Retrieved from: https://pdfs.semanticscholar.org/0fc1/5b775475b97c5e29d1422af5df6afef8e446.pdf Brynjolfsson, E., & McElheran, K. (2016). The rapid adoption of data-driven decision- making.American Economic Review,106(5), 133-39. Retrieved from: https://dspace.mit.edu/openaccess-disseminate/1721.1/108650 Cavanillas, J. M., Curry, E., & Wahlster, W. (2016).New horizons for a data-driven economy: a roadmap for usage and exploitation of big data in Europe. Berlin: Springer. Retrieved from: https://www.oapen.org/download? type=document&docid=1002241 Loebbecke, C., & Picot, A. (2015). Reflections on societal and business model transformation arising from digitization and big data analytics: A research agenda.The Journal of Strategic Information Systems,24(3), 149-157. Retrieved from: http://tarjomefa.com/wp-content/uploads/2016/09/5252-English.pdf