ROLE OF THE BOARD IN A OMNI-CHANNEL TRANSFORMATION
The implementation of an Omni-Channel initiative can yield significant rewards, but it also carries substantial risks that can threaten a company's value and continuity. Given the potential impact on a company's health, it is essential the initiative be more than a mere technology project and instead be prioritized by board agendas to ensure good governance and due diligence.
An Omni-Channel platform transforms not only technology but also business processes, skills, roles, responsibilities, organizational structure, policy, strategy, culture, and most crucially, the customer experience. By providing a single platform for website, mobile, retail, telephone, in-home, and virtual channels, Omni-Channel simplifies digital channels and enables marketing optimization, new market penetration, increased sales value, and other substantial benefits. However, it is the integration of the digital and physical worlds that defines the modern customer experience. A well-executed Omni-Channel experience can create a true competitive edge, but in this fast-paced, technology-driven world, it will eventually become standard. New but existing technologies such as augmented reality, virtual reality, meta verse, and the concept of "presence" will soon be built on these infrastructures and many times, it is the board, with their long-term perspective, will be asking management the diligence questions about where, when, and how much.
Historically, new technologies have produced varying degrees of success for companies, as exemplified by the history of ERP. While some companies have been surprisingly successful in implementing ERP, others have experienced valuation hits and even business failures. Winning or losing is not about the technology itself, but rather how it is considered from a strategic perspective, how it is governed to extract the most value, and how the associated organizational risks are managed.
Omni-Channel is not just a project; it is a transformation that requires active management of risks, issues, and conflicts. The board's role is to ensure that management is engaged and that high-level issues are being addressed. This includes dealing with customer adoption concerns, channel conflicts, service delivery issues, talent resistance and motivation, organizational change, pricing, and more.
Therefore, we argue for board involvement and strong governance in an Omni-Channel effort. How the initiative is strategized and governed will define its success as a technology-led business initiative. An Omni-Channel initiative can have an outsized impact on a company's value compared to its implementation cost, so it is the board's responsibility to ensure that good governance and due diligence are applied to its approval and organizational transformation.
Recent Articles
Popular Articles
