This document discusses how businesses can harness the power of digital networks and predictive analytics. This allows businesses to gain deeper insights into customer behavior from analyzing large amounts of data. It enables more precise customer segmentation and targeted value propositions. Businesses can also test innovations openly with customers to minimize risks. Harnessing digital tools in this way gives businesses more control over customer journeys and advocacy. It requires reimagining core business processes to embed flexibility needed for digital transformation.

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HARNESSING THE POWER OF DIGITAL NETWORKS AND
PREDICTIVE ANALYTICS:
New capabilities for finer customer segmentation, continuous innovation and targeted
value propositions.
In this digital age it is far easier to engage in a direct real-time mutual exchange of contents,
ideas and insights with customer networks through a multitude of digital touch points,
without needing to invest significantly to foster such a digital eco system.
Further, advancement in cognitive and neural learning algorithms combined with the
versatility of cloud computing has enabled processing several terabytes of real-time
structured and unstructured big data (from business processes, supply chain, channels,
product, and customer) to gain deep predictive insights in to customer psychology and
behaviour. Marshalling such business analytical capabilities are within the reach of even
PEARLSTELLAR
PEARLSTELLAR BUSINESS MANAGEMENT PVT. LTD

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small business enterprises due to dismantling of costly infrastructure and resource barriers
to gaining such cutting edge business intelligence.
By harnessing the power of both digital networks and predictive analytics, businesses are
able to gather unprecedented granular understanding of customer segmentation at micro
level providing them with the ability to offer customized and on demand individual value
proposition, comprising a compelling mix of functional, emotional, and psychological value
elements. Further businesses are able to ideate, test and iterate new value propositions,
product, service or business model innovations in an inclusive open innovation framework
with their target customer segments, thereby minimizing the risks associated with
monetizing those continuous stream of innovations.
This puts businesses in direct control of managing positive customer journeys and turning
each customer in to potential advocacies, and hence capturing the multiplier effect
associated with the sharing and broadcast of such positive feedback and advocacies through
the ever expanding digital networks.
Digital business transformation initiative needs businesses to reimagine their current core
business processes related to business planning, strategy, marketing, innovation, product
development, supply chain, partnerships, and distribution so as to embed the flexibility and
agility required by the digital networks, predictive analytics, and dynamic forecasting. It is
also necessary for organizations to evaluate the new skills and capabilities that are essential
to operate the business in a digital environment, and align their corporate learning and
development programs accordingly.
Subramanya Raja.V
Subramanya Raja.V is a Founder Director in Pearlstellar Business
Management Pvt. Ltd. He is a keen observer of global economy, business,
technology, politics, and social affairs. His area of expertise include
strategy, operations excellence, organization design, leadership impact,
performance management, change management, and customer
engagement. He collaborates with business leaders and chief executive
officers in their digital business transformation endeavors.