OmniChannel - Organization Design's Biggest Test | ON THE MARK
30th July 2015 Admin

OmniChannel – Organization Design’s Biggest Test

By Pamela Edmond

20 years ago we heard about the death of the specialty store. Then we all accepted that the shopping-mall was simply the most efficient way to go shopping.

10 years ago we started to see the introduction of convenience stores and realized that made sense, because of how busy we had all become.

Today we continue to see the growth in convenience, however we’re also now hearing all about the combination of clicks and bricks. Namely how we’re shopping more online, alongside a different kind of convenience concept.

So what’s next?

We’ve seen the importance of the customer evolving from a state of ‘customer satisfaction’ to ‘engaged customers’, to now – where the customer should be at the center of a business. OTM’s experience in FMCG and retail has allowed them to see over 25 different projects evolve through to what Treacy and Wieserma call ‘Customer Intimacy’.

Mark LaScola comments about Omnichannel.

“Omnichannel is a multi-channel approach to sales intending to provide customers with a seamless experience regardless of which channel they purchase. What distinguishes omnichannel is its true integration between and across sales channels.”

Omni Channel

GfK’s annual Futurebuy Survey has stated that a third of shoppers worldwide are blending online and in-store shopping. This statistic is set to continue and the upward trend shows us that Millennials ‘mobile’ mindset is going to change the way we all look at shopping forever.

So, what does this mean for organization design?

OTM has seen mistakes made with Omnichannel, as they can often be framed as technology projects, which have limited impact on only small areas of the business.

LaScola goes on to explain.

“Markets are changing and the omnichannel phenomenon is what will drive a change in how we bring tradition management and the role of social, data and customers together.”

“GfK studies state that super-connected consumers value experiences more importantly than possessions, so the social experience both online and in-store is still important. So what we want and how we want it is changing, and not just in retail. Experiences in everything from shopping for groceries to managing our healthcare are becoming increasingly important to us. Making sure we get the experiences we want affects everyone from manufacturing to logistics.”

“Implementing true Omnichannel thinking demands changes in the end-2-end value stream, structures, management mechanisms and what we call ‘glue’ activities. And not just in the commercial side of the business, but also in the manufacturing. Overall, changes in behaviors across the business are needed.”

OTM has always championed the importance of a customer-centric design, but now more than ever this type of collaborative design is gaining momentum for clients.

OTM’s top tips for an omnichannel revolution;

– Understand your data.

– Understand your customers and their patterns.

– Understand your design and how it must evolve to leverage insight from your data.

– Establish the customer as your “gravitational pull” for all you do.

– Bring your data and your customer agenda into a single function – interdependence-with and real influence across all channels, including all relevant business units and functions.

– Understand your data and your customer again.

– Finally, mobilize, mobilize, mobilize your people and culture, your value proposition, your brand, you’re thinking and behaving through the process of collaborative organization design.

The future is now and Omnichannel is already here.

ON THE MARK’s experience and passion for collaborative business transformation that’s supported by pragmatism, systems thinking, and a belief in people is unparalleled. OTM has been in business for 26 years and is a global leader in organization design consulting.

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