DIGITAL TRANSFORMATION IN

FREIGHT TRANSPORT
Contents
Introduction .................................................................................................................................................. 3
Context .......................................................................................................................................................... 4
Innovation is leading the change .............................................................................................................. 4
Digital as an innovation engine ................................................................................................................. 4
Digital transformation and the 4th Industrial Revolution ........................................................................ 5
Digital Champions ..................................................................................................................................... 5
Key technologies for digital transformation ............................................................................................... 10
For Customers ......................................................................................................................................... 10
1. Social media platforms........................................................................................................................ 10
2. Mobile/web applications .................................................................................................................... 10
3. User-generated content...................................................................................................................... 10
4. Wearables & IoT.................................................................................................................................. 11
5. Digital walls ......................................................................................................................................... 11
For IT ....................................................................................................................................................... 11
6. Cloud computing ................................................................................................................................. 11
7. Big Data analytics ................................................................................................................................ 11
8. Open-source software ........................................................................................................................ 12
9. Artificial intelligence ........................................................................................................................... 12
For the Physical World ............................................................................................................................ 12
10. 3D printing ........................................................................................................................................ 12
11. Driverless vehicles ............................................................................................................................. 13
12. Drones & robots ................................................................................................................................ 13
How Digital Business Services Aim To Deliver Maximum Customer Value ................................................ 14
Industrialized services deliver value faster ............................................................................................. 14
Intellectual renewal leads to innovation ................................................................................................ 14
Business outcomes must be the top priority .......................................................................................... 15
Analysis ....................................................................................................................................................... 15
Pricing Digital Products ........................................................................................................................... 15
Debate on the ROI of Digital Investment ................................................................................................ 17
Synthesis ..................................................................................................................................................... 18
Digitalizations of Operating Models ....................................................................................................... 18
Developing the Digitalized Workforce .................................................................................................... 19
 1. Vision ............................................................................................................................................... 19
2. Strategy ........................................................................................................................................... 19
3. Personas .......................................................................................................................................... 20
4. Metrics ............................................................................................................................................ 20
5. Employee experience ...................................................................................................................... 20
6. Organizational change .................................................................................................................... 21
7. Training ........................................................................................................................................... 21
8. Processes......................................................................................................................................... 22
9. Information ..................................................................................................................................... 22
10. Technology .................................................................................................................................... 22
Conclusion ................................................................................................................................................... 23
References .................................................................................................................................................. 23
Introduction
Digital Transformation in Logistics Industry is important to enhance the efficiency of operations. We
need to create business concepts and new service models to help supply chain and logistics players gain
a competitive edge over others.

By making the most out of digital technology solutions and making it easier for business owners to
manage supply chain and logistics for delivering, managing schedules, and gaining end-to-end visibility.
These digital transformation logistic solutions provide with real-time information throughout the
journey, enabling business owners to make faster, more informed decisions, resulting in optimized
operation for better margins and better customer experiences.

You could argue the transportation industry has been using digital for some time. For close to 20 years,
railroads have been tracking railcars using automatic equipment identification (AEI) along the track.
Also, Qualcomm started GPS fleet tracking in the late 90’s. Electronic messaging has been around for
decades. What is different and why is the recent rise of digital technology having a profound impact on
the transportation industry?

The industry is experiencing a collision of transformative technology, higher customer expectations, and
an influx of investments. Traditionally, the industry provides shippers with cheap and reliable service
using established product and performance definitions and metrics. There has been little initiative to
innovate or invest in technology. The industry was rather stable and, while the players changed, the
ways the industry conducted business seldom did.

You could also argue the status quo changed in 2005 with two separate events. Walmart pushed RFID
and Amazon started Amazon Prime. At first, RFID was considered too early a concept due to cost. But
while sensor technology was maturing, delivery expectations were increasing. By 2017, embedded
sensors and two-day delivery were expected.

With the emergence of smart products, assets, and always-on “things,” we now have access to
unparalleled amounts of information. This – along with the evolution of connectivity, Big Data, analytics,
and cloud technology – is enabling us to converge operational and information technologies. In turn, this
makes machines smarter and drives end-to-end digital transformation, which allows companies to gain
value sourced from data and turn insight into action.

These changes established the next critical step: investment.

Customers are demanding a greater level of service from their transportation providers, driving a
substantial transformation from investment. The industry is recognizing the need to change or become
obsolete. The examples are plenty:

 XPO has been on an acquisition binge since 2013 and has grown into one of the 10 largest
logistics companies in the world focusing on all modes
 UPS bought Coyote Logistics, a non-asset owning, technology-focused brokerage operation
 Big-box companies made acquisitions in the delivery market, e.g., Target acquired Grand
Junction and Walmart acquired Parcel
 Uber Freight rose out of a broker-experienced leadership team that recognized that freight
capacity can be better managed through technology
  Railroads are now providing customers a menu of holistic transportation service options, which
better leverages their extensive rail networks

Context
Innovation is leading the change
Innovation is also helping rewrite the economics of the transportation industry. For example, according
to PwC’s 2017 commercial transportation trends:

“It will soon be possible to integrate trucks into logistics data across the entire supply chain. Advanced
telematics will enable transportation companies, through cloud-based analytics, to track and check such
factors as truck location, the health and fatigue of the driver, the temperature and barometric pressure
of the freight, and so on. Telematics will also ease automated freight matching. The truck trailer, relying
on sensors, will be able to determine available space and weight, route, and ETA, and send this
information to software that can generate the most efficient and cost-effective scenarios for moving
loads.”

As you can see, innovation is making the possibilities endless. The industry must be ready.

Digital as an innovation engine

How should the transportation industry prepare? First, by including value-focused goals into the
corporate strategy and mindset. Then by adopting an integrated technology platform approach for all
your business functions (e.g., customer experience, asset, and workforce management; operations;
invoicing & billing; and finance). In other words, for organizations to achieve these goals, they must
embrace the latest technologies to reimagine business processes and business models.

Companies can set themselves up to succeed with the right digital platform. The industry has started
applying technology to create efficiencies and new business models. These include embedded sensors,
3D printing, drones, autonomous vehicles, and blockchain.

For example, UPS provides 3D CAD and 3D scanning services at more than 50 UPS store locations. Also,
Covenant Transport utilizes driver-performance data from sensor information to improve driver
retention and safety.

At the end of the day, you need to provide the 7Rs of business logistics: the right product, in the right
quantity, to the right customer, in the right condition, to the right place, at the right time and right cost.
Digital transformation and the 4th Industrial Revolution
The 4th Industrial Revolution is coming in the form of a digital revolution – following similar disruptions
by the introduction of the steam engine, electricity, and the micro-processor – and Asia will experience
it uniquely, Haupter believes

“Characterized by a fusion of technologies that is blurring the lines between the physical, digital and
biological spheres, this new era will create new services that link people together and enable them to do
more,” Haupter notes. “There are 3 key drivers which are making a real difference now – data, cloud
and analytics. Each of these, taken individually, are transformative in their own right. But when
happening simultaneously, which is what is occurring right now, they create an unstoppable force
enabling digital disruption, which will impact all organizations, all industries, all roles.”

There are already many success stories of businesses yielding the benefits of digital transformation –
raising their efficiency and productivity. For example, through data and predictive analytics,
manufacturers can pre-empt production and maintenance issues, farmers can optimize livestock
breeding rates, while hospitals can deliver improved healthcare through enhanced diagnostics.

Those instances are just the tip of the iceberg. The confluence of these technologies is now forcing
organizations to rip up existing playbooks and find new opportunities in a disruptive, dynamic business
landscape, says Haupter.

The growing awareness of the potential of data intelligence and machine learning is another key driver
behind the digital revolution.

“We are in an age of data, which is making a huge difference. The potential benefits are almost only
limited by how you connect the dots, along with the kind of data that can be collected – be it through
devices, infrastructure, vehicles or buildings,” says Haupter.

While there is an awareness of the importance of digital transformation in Asia, that has not yet fully
translated into reality, Haupter observes. He cites a recent Microsoft survey, which found that 80
percent of business leaders across the region believe in the need to transform to become a digital
business in order to grow. However, only 29 percent had a full digital strategy in place – suggesting the
digital transformation race has really only just started in the region.

Digital Champions
Most manufacturers, energy companies, and raw materials providers know they face a strategic
challenge. Industry 4.0 is coming. Dubbed the “fourth industrial revolution” by World Economic Forum
founder Klaus Schwab, this orchestrated system of digital advancement has also been referred to as an
industrial renaissance (see “A Strategist’s Guide to Industry 4.0,” by Reinhard Geissbauer, Jesper Vedsø,
and Stefan Schrauf, s+b, May 9, 2016). It is emerging from a number of different companies and
government initiatives, most notably in Germany, the United States, and China.

In all cases, the promise is the same. The last industrial revolution (known as Industry 3.0) involved the
automation of single machines and processes. This new wave of operations integrates every aspect of
the value chain in one end-to-end digital platform, using sensors and analytics throughout, incorporating
the Internet of Things (IoT), with cloud-based software driving the entire process. Companies can use
this new shared smart infrastructure to make their manufacturing and logistics more efficient, to offer
innovative products and services, and to keep improving their production on the fly, responding in
unprecedented ways to customer and consumer demand.

The benefits are immense, and impressive examples of Industry 4.0 have begun to emerge. The
connected industry platform at Bosch Rexroth, a global electronics and engineering company, has set a
goal of realizing €1 billion (US$1.2 billion) in savings by 2020 and offering similar sensor- and software-
based solutions to its customers. GE Digital, the enterprise that oversees GE’s industrial Internet
platform, set a similar target in 2015, aiming to realize US$1 billion in productivity goals by 2020 — a
target it reached in 2017. Daimler credits its “smart production” Industry 4.0 initiative with helping it set
seven consecutive annual production records for its Mercedes-Benz cars, with all its vehicle models and
drive types rolling off the same fully flexible production lines. Li & Fung, which provides logistics and
supply chain services to the consumer products and apparel industries, has dramatically reduced time-
to-market. For example, its apparel manufacturing clients use the company’s virtual reality
environments to see how garments would look on purchasers and rapidly adjust designs. French
aerospace and defense components manufacturer Safran, with its “factory of the future” initiative, is
approaching growth rates for its four-year-old LEAP turbofan jet engine that the engine’s predecessor,
the CFM56, never reached in 20 years of volume production.

Cases like these are noteworthy for two reasons. First, they demonstrate the advantages that
manufacturers can enjoy from Industry 4.0: improved pathways for revenue and profit growth, greater
customer satisfaction and loyalty, increased operational efficiency, reduced product development
cycles, faster scalability, and more gainful supplier relationships (see “Expected Benefits of Being a
Digital Champion”). Second, they illustrate the challenges involved in realizing those gains. Industry 4.0
is not a group of technological platforms that can easily be adopted as a purely operational upgrade. It
requires a clear strategy and top management commitment; the transformation of key operational
activities; and a deep understanding of collaboration, across internal company boundaries and likely
with other companies that share the same platforms and technologies.
Each Digital Champion has its own form of Industry 4.0 prowess. Some have highly effective go-to-
market strategies. Others excel at implementing a transparent and integrated supply chain, or at
attracting talented people. But on the whole, Digital Champions distinguish themselves by a continuous
effort to improve their capabilities in all four ecosystems and by integrating and orchestrating them.
Key technologies for digital transformation
Just a short while ago, technologies were used in a limited number of public spheres. In today’s world,
technologies are connecting people, things and businesses in all aspects of our lives. Once it began, this
process has gained tremendous momentum and continues to do so.

Digital transformation is the incorporation of new digital solutions into all human activities. It profoundly
changes the traditional models and creates a completely new ecosystem on our planet in which every
object can be smart and connected to the global web. There are not only technical aspects of digital
transformation, as most of us may think. Digital transformation also causes a cultural shift, because it
changes the way people think.

Let’s talk about 12 technology tools for digital transformation. Transformation of different industries
requires different technologies depending on their specifications, goals and users. One tool can be
applied in one specific industry, another tool suits a few different industries. We’ve roughly grouped the
top technologies according to their purpose.

For Customers
If your business is aimed at consumption, you should be available for your customers 24/7. Digital
technologies facilitate communication and interaction between users and producers, help them find and
receive information quickly, and keep them engaged and always connected.

1. Social media platforms

Social media is one of the best tools to surpass your competition and reach a wider audience. Today, it is
a must for any company to have an active online presence on major social networks in order to become
a recognizable brand in the market. Facebook, LinkedIn, WhatsApp, Instagram, Skype, Viber, and many
other social media platforms engage millions of potential and current customers around the world,
erasing geographical boundaries.

2. Mobile/web applications

Web or mobile apps are developed for the sake of users’ convenience. Any application can be easily
integrated with existing systems and quickly extended. Thanks to applications, a solution can be rapidly
disseminated and become extremely popular.

3. User-generated content
User-generated content (UGC) is the phenomenon in which users promote a brand or a product
themselves via blog posts, tweets, pictures, videos, etc. UGC is a powerful marketing tool for customer-
orientated businesses in the tremendous world of the Internet. A great example of the UGC campaign
was conducted by Coca-Cola.

4. Wearables & IoT

These are technology capabilities for digital transformation of our homes, offices and daily life. Many
people today own a couple of smart gadgets and cannot live without them. The wearables market is in
its early stages of development and is dominated by health, activity tracking and interacting devices. The
Internet of Things is going to expand at a fast rate in the near future.

5. Digital walls

Digital walls are interactive, customizable, multi-sensory displays of big sizes. They provide various kinds
of information (educational, entertainment, branding, advertising). Digital walls are located in high-
traffic areas (airports, shopping malls, amusement parks) in order to draw the attention of potential
clients.

For IT
The IT industry needs digital transformation to perform more efficient software development and to
enhance data security.

6. Cloud computing

It does not need to be said that the cloud is now mainstream for many enterprises. Remote data storage
facilitates different processes and provides definite competitive advantages. Actually, the cloud is the
foundation of digital transformation, as it offers the necessary speed and scale for this process. Cloud
computing enables the IT industry to develop, deploy, deliver and scale quickly.

7. Big Data analytics

Specialized systems and software drive the process of Big Data analytics. It is the examination of huge
data sets in order to find out market trends, correlations, customer preferences and other underlying
trends. Complex algorithms process data and generate meaningful information. IT specialists use this
technology to help enterprises be more informed and make decisions with the use of the most up-to-
date information. Big Data analytics consists of 6Cs:

1. Connection (sensor and networks)

2. Cloud (computing and data on demand)
3. Cyber (model & memory)
4. Content/context (meaning and correlation)
5. Community (sharing & collaboration)
6. Customization (personalization and value)

8. Open-source software
The term “open-source” means that software is designed for public access and everyone can access it
and share it. Programmers can inspect, modify and improve the program by adding some features or
fixing parts that malfunction. Community-generated software follows the principles of open exchange,
rapid prototyping, transparency and collaborative development. Open-source software is a great tool for
a quick digital transformation.

9. Artificial intelligence

People mostly associate artificial intelligence (AI) with human-like robots. They do exist, of course, but AI
is much more than that. Autonomous vehicles, weapons, searching systems, security systems, personal
assistants (e.g. SIRI) — all these developments refer to artificial intelligence. Today, there exists narrow
AI that may outperform humans at some specific tasks (e.g. solving the equation, playing chess, driving a
car). In the future, researchers are planning to create strong AI that will be able to exceed humans at
nearly all cognitive tasks.

For the Physical World

By the physical world, we mean production and manufacturing, logistics, medical care, service industry
and so on. Organizations involved in these activities don’t operate purely in the world of information.
They interact with reality. But they are still highly connected with digital technologies, and they undergo
this transformation. So, the real world is being influenced by these technologies.

10. 3D printing

This technology is actively used in manufacturing to produce ordinary three-dimensional objects using
computer control. A 3D-printer is able to create a great variety of things — from small household goods
to vehicles, prosthetic devices, and even food. 3D printing is an incredibly useful technology that can be
applied in various areas.
11. Driverless vehicles

In the near future, we may definitely see driverless cars in our cities. By now, the leading automobile
companies such as BMW, Audi, Ford and General Motors are developing autonomous cars and are
already carrying out tests on the streets and highways. All that a human needs to do is set a destination.
Then the software calculates the route and starts driving. While en route, it monitors the space around
the car, creates a dynamic map of the current environment with the help of video cameras in the streets
and inside the car, and calculates the distance to obstacles. Still, the human is able to take control of the
vehicle. Such a car with embedded software is a promising solution that will be able to eliminate
accidents caused by driver errors, reduce traffic jams, improve traffic flow and increase highway
capacity. Driverless cars can be used to deliver goods at long distances and let drivers have a rest.

12. Drones & robots

Robots are now common practice at many industrial sites around the world. They increase productivity
and make the manufacturing process easier for people. They are applied in such hazardous production
facilities as mining, oil and gas extraction, and chemical production, in order to enhance the safety levels
for workers, and reduce industrial accidents, injuries and even deaths.

Drones are the next generation of robots that possess even more opportunities and can bring new
efficiencies. As they are battery-powered and operated almost autonomously, drones can be effectively
used in logistics and, avoiding road traffic, make deliveries faster, cheaper and in an ecologically friendly
manner.

Figure 1 Technologies for Digital Transformation

As we have shown, modern information and communication technologies are greatly changing the
industry, business, and life in general. If you want to keep pace with this transformation and bring your
business up to speed with the developments, choose Sam Solutions as a reliable IT-services and
software provider.

How Digital Business Services Aim To Deliver Maximum Customer Value

The digital economy is changing the way businesses work and serve customers, and the pace of that
change is accelerating. Traditional processes and practices are giving way to methods designed to meet
customer needs faster. Business services must do no less.

According to Leaders 2020, a recent Oxford Economic study commissioned by SAP, one of the main
qualities of digital leaders is that they leverage digital technologies for improved decision making. This is
the same for customers. They need digital business services that help them achieve maximum value, as
quickly as possible, with minimum risk.

Industrialized services deliver value faster

One of the key ways to meet these goals is to industrialize business services. By using a “model
company” approach that defines the majority of processes for each industry or line of business,
companies can create reusable, renewable services that are delivered quickly and cost effectively.
Consultants can focus their efforts on the missing pieces identified during a fit-gap analysis, with a
resulting reduction in implementation complexity, time, and cost.

For example, a large global transportation and container company used the model company to cut down
its build time from 11 months to four. By using the best practices already included in the model
company, this business was able to reduce both the amount of custom code and unnecessary
modifications. By working closely with its consultants, the company identified and filled the function
gaps.

Intellectual renewal leads to innovation

The industrialization of business services delivers value to both service providers and their customers.
Highly refined deployment processes free consultants’ time and energy to focus on innovation and
creative problem solving. When consultants see which modifications and adjustments deliver
incremental value to customers, they can bring their learning back to the software development team.

Companies should look for consultants who understand both the breadth of business and the specifics
of their industries and who possess both deep technical skills and the ability to help customers solve
their problems – people who can receive and share knowledge. That knowledge informs successive
generations of business products and helps ensure that solutions support current and evolving business
processes.
Working in this way reduces complexity and speeds the time to value for solutions and the overall
business. This simplified, end-to-end, continuous learning process also helps companies move forward
with their own digital transformation.

Business outcomes must be the top priority

By focusing on business outcomes and customer successes, digital business services can help companies
cast off traditional structures and innovate. In Mexico, medical and hygiene product supplier Nadro used
value assurance packages to implement a new business solution. With accelerated response times,
faster throughput, and higher end-user satisfaction, Nadro sees this solution as the foundation for its
digital transformation.

There are many more stories of how companies are using digital business services to evolve, unleash
new value, and ensure business continuity. In the coming weeks, our team will describe:

 How an industrialized services approach can help companies navigate their digital
transformation journey
 People, processes, and technology needed to support a successful transformation strategy
 The need to focus on value and business outcomes during the digital transformation journey
 The future of support services in the time of digital transformation

Analysis
Pricing Digital Products
Pricing can be used as a marketing strategy. For software-as-a-service (SaaS)-based businesses, this is
especially true. Pricing can generate interest, drive sales and attract new customers to your list and
business.

If you never thought about using pricing as part of your marketing strategy and simply slapped your best
guess onto the current price tag, take heart: The great thing about digital products is that you can
always adjust their price. Better still, try testing each of these eight pricing strategies for your digital
products, and see which one works best for you.

Here are pricing strategies for digital products that sell (Note: Although we often think of SaaS the way
we do subscription-based software, such as subscriptions to Microsoft Office or a favorite virus
protection tool, "SaaS" can also refer to other digital products with a recurring subscription-based
model.)

1. Know the market, and price competitively.

Complete a competitive analysis and assessment so that you know how others in the industry are pricing
similar digital products. Then, price yours to position it against the competition. If your product offers
exclusivity, bonus content or a value-add that competitors’ products do not include, consider pricing
that's slightly higher or at least leverage the value-adds in your marketing messages. If your competitors
offer similar products, consider how you can discount or incentivize with price without sacrificing your
profit margins.

2. Offer tiered pricing.

Tiered pricing is common in the SaaS realm. Customers are already familiar with typical tiered pricing
models, and you can offer varying levels of service, information or access to the features of your product
at different price points.

3. Demonstrate the differences.

Many companies that offer tiered pricing demonstrate the differences between high- and low-end
packages by using a grid or comparison chart. Salesforce.com is a great example. You can clearly see the
enhanced value with each added tier in its comparison chart. Think about ways in which you can
graphically show the added value of your product, using a tiered pricing strategy.

4. Let customers try before they buy.

Nearly every company offering SaaS lets customers try before they buy. Most companies offer a 7-day,
21-day or 30-day free trial. Be sure to have an autoresponder in place that will automatically contact
customers whose free trials are expiring to remind them to renew before the trial ends. Consider adding
a special offer to those who do renew before the trial ends to make it easy for customers to say "yes"
and buy the full subscription package.

5. Use psychological pricing methods.

Psychological pricing refers to a method of pricing items to make them appear like a bargain. Shop in a
high-end store and you'll see that the items end in zero; shop at Wal-Mart or any typical discount store
and note that prices end in "7" or "9." Consumers have been conditioned to see “value,” even if an item
is a penny less or two than a competing item. Instead of pricing your packages at $30, $60, and $90,
consider pricing them at $29, $59, and $89 respectively, for example, to denote value.

6. Offer an added bonus.

Everyone loves a free gift with a purchase. That’s why many digital products, such as ebooks, add a free
ebook or worksheet to your purchase. It’s an added, perceived value that can convince uncertain
customers to complete the transaction. If you do offer an added bonus, be sure it adds substantial value
to your core offering.

7. Offer a money-back guarantee.

Money-back guarantees take away the last objection to purchasing a digital subscription by removing
the risk in the transaction. Customers leery of buying from an unknown or independent digital provider
may be less cautious if they are certain their money is not at risk. If you offer a quality product, you
should see few, if any, returns. And if you aren’t certain about the quality of your product, take it back
to the drawing board for additional tweaks; don’t release it!

8. Test your offer and price, and be creative.

Pricing is important, but so too are the elements around the price on your website. The offer and
creative elements work with pricing to attract customers to the page and convert browsers into buyers.
Test different price points, new creative methods to showcase features and benefits of your products,
new calls to action and added value or bonus products to see which combination converts the most
leads to sales.

Pricing is an important element of your digital product strategy. By using these tips, you’ll develop a
realistic, profitable and attractive pricing structure for your digital subscriptions and more.

Debate on the ROI of Digital Investment

The econometric regression model used in this research estimates the revenue and productivity impact
of investments in four technology categories: robotics, IoT, cognitive technologies and mobile/social
media. After validation from industry experts, the model revealed four key findings:

1. The return on investment in new technologies is positive overall. The productivity increase is
three times higher when technologies are deployed in combination.

2. The return on digital investments varies by industry, and industry leaders achieve a greater
productivity increase from investments in new technology than followers. The leaders in a
majority of industries tend to be larger companies by revenue.

3. Asset-heavy industries realize more value from robotics; asset-light industries realize greater
value from mobile/social media.

4. While industry leaders realize higher overall return from robotics and mobile/social
investments, followers have gained more from IoT and cognitive technology
Figure 2 Impact of a $1 new technology investment on revenue per employee and labour productivity at the average
company (e.g. $1 invested in combined new technologies has yielded $2.2 – a 120% increase in revenue per
employee. “Combined Investments” shows the impact of investment in all four technology categories combined)

Synthesis
Digitalizations of Operating Models
Companies need to increase revenues, lower costs, and delight customers. Doing that requires
reinventing the operating model. Companies know where they want to go. They want to be more agile,
quicker to react, and more effective. They want to deliver great customer experiences, take advantage
of new technologies to cut costs, improve quality and transparency, and build value.

The problem is that while most companies are trying to get better, the results tend to fall short: one-off
initiatives in separate units that don’t have a big enterprise-wide impact; adoption of the improvement
method of the day, which almost invariably yields disappointing results; and programs that provide
temporary gains but aren’t sustainable.

We have found that for companies to build value and provide compelling customer experiences at lower
cost, they need to commit to a next-generation operating model. This operating model is a new way of
running the organization that combines digital technologies and operations capabilities in an integrated,
well-sequenced way to achieve step-change improvements in revenue, customer experience, and cost.

A simple way to visualize this operating model is to think of it as having two parts, each requiring
companies to adopt major changes in the way they work:

 The first part involves a shift from running uncoordinated efforts within siloes to launching an
integrated operational-improvement program organized around customer journeys (the set of
interactions a customer has with a company when making a purchase or receiving services) as
 well as the internal journeys (end-to-end processes inside the company). Examples of customer
journeys include a homeowner filing an insurance claim, a cable-TV subscriber signing up for a
premium channel, or a shopper looking to buy a gift online. Examples of internal-process
journeys include Order-to-Cash or Record-to-Report.
 The second part is a shift from using individual technologies, operations capabilities, and
approaches in a piecemeal manner inside siloes to applying them to journeys in combination
and in the right sequence to achieve compound impact.

Developing the Digitalized Workforce

Upgrading IT systems, overhauling business processes and stacking talent benches are crucial
undertakings of any digital transformation.

But many CIOs have realized that if employees are going to improve the way they serve customers, they
must provide employees with a high-quality digital workplace.

In fact, by 2020 the greatest source of competitive advantage for 30 percent of organizations will come
from the workforce's ability to creatively exploit digital technologies, according to Gartner.

Here is a digital workplace transformation plan worth considering, as informed by Rozwell and
practitioners.

1. Vision
Your digital workplace plan should align with business and digital transformation goals — and clearly
answer why you want to overhaul your work environment. Remember, your goal is to increase
employee engagement and productivity. Work closely with stakeholders, including business, HR and
facilities managers, to shape the plan and execute changes, bearing in mind the workplace
demographics and potential impact those changes will have. How will these efforts change business
processes? Don't execute on technology platform decisions until you achieve clarity and agreement on
the digital workplace's purpose and objectives. This will consume significant budget, so remember to get
buy-in from the rest of the C-suite and board of directors.

2. Strategy
Once a dirty phrase for CIOs, shadow IT has thrust emerging technologies into the limelight, as
employees voted loud and clear about their software and user experience preferences by using apps
they are comfortable with to do their work. Your digital workplace should enable employees to have a
greater voice in technology decision-making.
You must establish a roadmap and blueprint for coordinating digital workplace initiatives across R&D,
marketing, sales, customer support, manufacturing, HR and IT. Questions to ask this multi-disciplinary
collective: How will you exploit various technologies to raise employee engagement levels and support
your company’s digital initiatives? How can you create workspaces that increase employee creativity
and enable ad hoc and formal opportunities for collaboration? Be sure to do your homework, as this
requires a clear understanding of how people work and what improvements are envisioned.

But remember: Consumerization of IT is your friend, so embrace it to help reduce employees' anxiety
about new technology.

3. Personas
Employee personas are a critical component of any digital workplace initiative, helping enterprises
establish baselines for staff workstreams. To wit: What tech tools does an HR head require versus a sales
lead?

As part of a major digital workplace effort, BNY Mellon a few years ago established a persona model that
defined users as sharers, knowledge seekers and inside experts, according to Gartner research. The
personas included attributes such as technology adoption and mobile use, content creation,
consumption and sharing, as well as organizational knowledge. Tracking technology consumption for
each persona is critical to help gauge organizational value.

4. Metrics
Use analytics to calculate IT, HR and business metrics and create a digital scorecard. For example, you
can gauge user engagement to tracking daily active users and time spent in collaboration software such
as Slack. Try to quantify positive impacts on workforce effectiveness, employee agility and employee
satisfaction and retention, information you can use later to assess change management and refine your
approach. Digital business metrics are among the hardest to calculate but they are essential to gauging
the value of your investments. “These metrics help process owners to articulate the potential return on
investment to senior management, and prevent technology investments from being perceived as just an
expense with no upside,” Rozwell says.

5. Employee experience
Improving customer service is the end goal of a digital workplace but you have to bolster the employee
experience first. Rally your IT troops and work with real estate and facilities managers to create smart
workspaces that enhance collaborative work activities, and provide space for individual concentration.
Create an online portal where managers can recognize employee contributions and success and
incorporate it into a shared IT/HR metric to monitor employee engagement.
The Boston Red Sox implemented an intranet, called Home Plate, to help improve communications to
and from its employees, which include around 350 full-timers and more than 1,000 seasonal workers to
helm security and other roles during the baseball season. The intranet, Akumina Digital Workplace, runs
atop Microsoft Azure and integrates with Active Directory, says BoSox CIO Brian Shield, who ran the
project.

Shield says the content, refreshed regularly, includes gameday photos and videos, as well as how-to
articles. BoSox also integrated a chatbot to help employees learn about benefits and answer other
questions. Keeping your employees in the loop, even with something as basic as a modern intranet, is
essential for engagement.

“Employees will be more willing to collaborate, take on challenging roles and provide coaching if they
are excited by their work and see the opportunity for growth in the changes being requested of them,”
Rozwell says, adding that an engaged workforce often outperforms the competition.

6. Organizational change
Digital workplace initiatives typically require considerable change to internal processes, departmental
structures, incentives, skills, culture and behaviors. Assess the new skills and competencies required for
the digital workplace.

You’ll want to identify change management leaders who can anticipate and mitigate obstacles before
they become problems. Integrate digital workplace technologies into workflows and set rules, such as
technology standards, usage guidelines, information governance and best practices. Work with senior
executives to get them to listen to and engage with employees.

7. Training
New technologies can add stress to your employees’ jobs. You can ease their transition with effective
training. Plan to reskill and, if necessary, hire personnel to train them up.

When medical technology company Cerner was looking to upgrade from C++ and C# programming
languages to HTML5 and other web-friendly languages it hired digital consultancy PluralSight, whose
corporate learning content helps advise clients on new and emerging technologies, as well as agile and
DevOps methodologies, says Eric Geis, Cerner’s vice president of intellectual property. Previous efforts
to upskill 26,000-plus employees, who were spread across 10 U.S. location and 30 international offices,
failed because they were too slow.
“We couldn’t train people fast enough and the content got old and stale quickly,” Geis says. PluralSight’s
continuous learning approach has helped with employee retention, “motivating employees and giving
people options to prove themselves in tech space.”

8. Processes
More likely than not you’ll find yourself re-engineering business processes. First take a close look at how
employees currently work and what activities they spend the most time on. Use a customer journey-
mapping playbook to mirror employee journey maps by collecting and analyzing data linked to
employee activities and experiences. Consider emerging technologies, such as internet of things and
artificial intelligence. For example, a sensor-rich smart building can track workspace usage patterns and
adjust lighting and HVAC settings according to employees' preset preferences. Use AI to automate
toilsome, routine tasks to make employees more productive.

9. Information
Workers want software for searching, sharing and consuming information to be as "smart" and
compelling as the ones they use in their personal lives. They want information and analytics to be
contextualized and delivered in the moment of need. In that vein, you’ll want to implement a file-
sharing system that enables easy mobile access and real-time synchronization. Consider virtual
assistants that can provide contextualized content recommendations, decision support and advice.
Weigh the value of roving robotic video conferencing systems and immersive, 360-degree video
conferencing systems. A little sci-fi can go a long way with your digitally-empowered workforce.

10. Technology
Wait, didn’t we just delve into the tech side? Yes, but most of you aren’t doing this effectively. “Most
organizations have a haphazard architecture that has largely been driven by their digital workplace
vendors,” Rozwell says. You need to tie all of the digital platforms together in a seamless mesh of
contextual awareness, mobility and real-time information delivery that enables employees to serve
customers. Facilitate cloud-, mobile-first strategies. Create a "bring your own work style" culture,
enabled by smart workspaces. It’s also important to reward technology innovation practices.

This is just a blueprint; the proof lies in the execution. How is your digital workplace initiative helping
employees hit every stop on your corporate customer journey map?

And finally, ask yourself: How will your digital workplace help improve the way your employees serve
customers?
Conclusion
The digital brokerage industry is growing rapidly and will generate at least $11.58 billion in revenue in
North America by 2025. This figure is close to the 2025 global revenue estimate for telematics services
presently, indicating the sheer potential for businesses to succeed in this space.

However, growing in the brokerage space – a business that has traditionally relied on personal
relationships and trust – is proving challenging for technology startups. Uber freight is not having the
same kind of growth trajectory that Uber’s ride-hailing business experienced. Despite low rates per mile,
carriers and shippers don’t focus only on rates. They also analyze payment assurance, cargo safety,
service continuity and rate negotiation leverage.

While the highly fragmented freight brokerage market will digitalize, the chances of it delivering on
promised efficiency improvements are uncertain unless there is consolidation. If shippers, carriers and
brokers are spread across thousands of digital platforms, the trucking industry cannot achieve the type
of efficiency improvements envisaged.

China is leading the way, with rivals Yunmanman and Huochebang merging in November 2017 to create
the Manbang group, valued at over $2 billion. This will become common in the freight brokerage
industry as digital freight brokerage solution providers struggle to achieve scale and maintain
differentiation.

It is an exciting time for truck brokerage, and one can expect to see many new business models arise,
along with many mergers and acquisitions.

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