Changes accelerated by COVID-19 has made it clear that a shift to the cloud is critical to staying competitive. Often the first thought is, “we should try to build from the ground up.” Usually resulting in a nightmare implementation, costing time and money.
When thinking about the first steps in digital transformation, building a relationship with a partner you trust and well-versed in digital transformation processes and concepts is vital. A partner to guide digital transformation allows a business to get back to focusing on revenue generation, having freed themselves of many worries of implementation and process challenges.
Let’s dig into why it’s essential to work with a partner to move your traditional or on-premises solutions to the cloud.
The Pareto Law
Pareto’s Law’s premise asserts that a small percentage of causes produce the majority of consequences. Vincent Pareto, an Italian economist, noticed that 20% of the pea pods in his vegetable garden produced 80% of peas. Pareto then studied Italian land ownership and found that about 80% is under the ownership of 20% of the population.
Future economists would soon begin to apply Pareto’s Law to business management, analysis, and decision-making. For example, 80% of profits in a given industry is earned by 20% of businesses. For many websites, 80% of organic traffic comes from roughly 20% of keyword searches. In the computing industry, we find that 80% of computer owners use 20% of its features. While not always a clean 80/20 split, the lesson is that the most significant drivers of consequences tend to concentrate on small but significant efforts. As Investopedia explains, “This principle serves as a general reminder that the relationship between inputs and outputs is not balanced.”
With the Pareto Law in mind, it’s hard for any business to justify allocating extensive effort to an area of work outside of their expertise. It’s that 20%, that unique value proposition, on which a business needs to focus. Too much time diverted from the core revenue-driving effort is costly.
The Upside of Partners
If Pareto’s Law tells us that businesses need to concentrate their efforts in areas in which they already excel, how does a business adapt to changing environments? Success relies on finding a partner who can shoulder the load. Companies know themselves best and with that believe they are best suited for the task. Bringing an outside perspective anchored by deep industry experience is the key to building a complete roadmap and foreseeing challenges that would otherwise take a company by surprise.
Most companies who try to develop a solution are not successful given the obstacles along the way — with almost 42% of implementations failing. Why?
It’s expensive – Requiring a significant upfront investment of new technology and training and hiring employees with the proper skill set.
It’s distracting – Digital transformation requires 100% diligence and attention to detail which can impact prioritization of goals and take away resources from the main drivers of growth and revenue — the 20%.
The benefit of engaging a trusted partner is the assurance that their expertise and experience in dealing with similar business cases allows a company to address common pitfalls before they become a blocker to success.
BluLogix: A Partner for Digital Transformation
At BluLogix, enabling digital transformation in monetization is our 20%. Our expertise allows us to build the infrastructure and features required to find success in the transition to consumption or usage-based economies and design a roadmap configured to meet specific requirements across all business functions. Our platform and methodology are industry proven because we draw on years of experience providing solutions while remaining agile in response to customer needs. Businesses get the best of both worlds: the ability to tailor the tools to business needs and the efficacy of a tried-and-true process.
Companies realize the urgency to put in place monetization technology that addresses complex billing and provisioning scenarios. The same complexity requires tailored guidance to design and scale for sustained growth. Our mission is to reduce the stress and challenges involved—taking the pressure off while remaining transparent and clear throughout the process. The result is an agile monetization platform with the configuration of an in-house tool and the effectiveness of an industry-tested process that allows your business to shepherd through the transition.