David is Head of Digital Consulting at CACI and founder of the blog Storm81 on digital strategy and transformation.
A thought provoking post. This is important when we consider that the World Economic Forum is predicting that by 2020, the jobs market will have been greatly disrupted by AI based tech.
When I read the original HBR article it reminded me of the example Pfeffer and Sutton use in Hard Facts, Dangerous Half-Truths and Total Nonsense.Essentially 7-Eleven spent a huge sum of money on encouraging a service obsession. After the money was spent Pfeffer and Sutton found that it had done very little to increase sales. Customers valued speed of service not smileyness*.
It seems to me that customer effort scores can help pinpoint exactly how to delight a customer where it matters.
Anyway thanks for putting this post out. The research and case study is excellent.
My take on HMV, Jessops and now sadly Blockbuster is that the central business model was no longer sustainable. Building additional channels or routes to an irrelevant business model won't make it any more desirable to consumers.
IMO, true digital transformation is a recognition that the entire business needs to transform around digital. HMV could have created a Music As A Service model before Spotify. But they failed to digitally innovate. Blockbuster could have created LoveFilm or Netflix before both of them. Again, they failed to innovate.
If you don't innovate, someone else will. That innovation creates disruption which often takes down the market leaders of yesterday. Interestingly it's not a new phenomena, it's been happening for decades.