Identification of specific challenges Billabong faces because of lack of digitisation

Discuss about the Digital Business and Disruption Strategy Systems.

As the present business world is rapidly transforming, therefore, most of the business organisations intend to step into the digitisation process in order to break the potential industry barriers. According to Sabbagh et al. (2013), digitisation helps to create a completely new opportunity as it destroys the existing traditional business models in the market. In this particular business report, there will be detailed explanation of Billabong’s adopted digitisation strategies for expanding and developing their entire business procedure. In present days, Australian company Billabong encounters some critical challenges while continuing their business in the retail industry of Australia (Au.billabong.com 2016). There will be also mention of the comparison in between their traditional business system and newly digitised business of Billabong in this particular report. Even at the end, there will be effective recommendations for overcoming any kind of issues while implementing the digitisation strategies within the business process.

Hajkowicz et al. (2012) have mentioned that the mortality rate in the e-commerce enhances in gradual manner only because of modern and technologically advanced young generation, who prefer to shop over online rather than visiting the stores or outlets. As Billabong is a famous clothing e-commerce website in Australia, therefore, the business executives of this particular company intends to implement the digitisation process only to cater the contemporary young customers of Australia. In its earlier days, the management runs outlets and stores in various locations of Australia including Queensland. However, very soon the higher authority has realised the requirement of implementing digitisation process for business expansion and for earning profitable sales revenue in order to hold a stable and strong position in the clothing retail industry of Australia. Because of lack of digitisation, the associates of Billabong failed to maintain relevant data, transmission and the data storage in potential manner. Sabbagh et al. (2013) have referred that with the constant advancement in the modern technologies; there will be further transformation in the entire digitisation process, which will make an evolution in the e-commerce website.

However, there are huge controversies regarding whether the digitisation process is effective for an organisation or not. On the other hand, for the case of Billabong, this specific company could not hold the desired position in the Australian fashion retail industry only because of its lack of digitisation process. There were less productivity, less work integration among the employees and less flexibility of performing the allocated tasks within the employers and the workers because of the lack of digitisation within Billabong. Even because of lack of digitisation, there were a negative impact upon corporate performance and effective use of various social media for promoting and launching new products. Peitz and Waldfogel (2012) have suggested that in today’s entertainment and media industry, there are constant commoditizations of every products and it can be considered as a greater impact of the implementation of digitisation process. The greatest challenges Billabong faces because of the lack of digitisation involves that its absence in the digital media like the other competitor companies in Australian fashion retail industry. Another potential challenge includes the failure of Billabong to make collaborative projects for earning profit in short period only because of the lack of digitisation process. As opined by Bolt (2012), as the digitisation possesses the capability of developing the entire business operations of an organisation, therefore, every organisation should implement digitisation in order to provide a tough competition to their competitor companies in their respective industries.

Discussion of key strategies to address the identified challenges

According to Mortimer-Schutts (2016), organisations redesign their operating models and capabilities in order to take complete advantage of the digital technologies. Similarly, the management of Billabong has realised the importance of digitisation in today’s competitive business and economic world, therefore, the management has engaged the business executives in order to make effective and perfect strategies for mitigating the identified challenges because of the lack of digitisation within Billabong. Woyzbun et al. (2014) have commented that if every company fails to change with the gradual changes within the industry by employing potential strategies, then there will be no scope for that unchanged organisation to make a good position in the industry. The business experts of Billabong have developed the marketing strategy for e-commerce website of the company in order to provide a perfect facility to the all inhabitants of Australia from various locations to shop for their fashionable clothes and accessories both for men and for women (Au.billabong.com 2016). Even it improves the value chains with the implementation digitisation in the organisational infrastructure. The improving strategy of the existing revenue model also plays an important role in order to address potential challenges faced by Billabong because of the lack of digitisation. Even the digital transformation strategy will help the associates of Billabong to maintain the relevant data of the regular customers, efficient stakeholders, who are essential for the constant development of this specific organisation. Umbers (2014) has mentioned that a successful digital transformation in the corporate world always starts with the leadership embracing technology, which sends a transparent message to the other existing competitor companies that this particular company is serious about the gradual changes.

The organisation culture strategy helps the associates of Billabong to adopt the digitisation process for the betterment of the organisation and the development of their own working performances. Andersson and Tuddenham (2014) have mentioned that in the procedures of digital transformation, the culture transformation continues with the gradual technological changes. Billabong’s corporate digital transformation will influence the entire enterprise; therefore, this particular company should be prepared for encountering the challenges. The customer relationship strategy of Billabong is also essential for mitigating the present challenges because of the lack of digitisation. As commented by Peng et al. (2016), proliferation of various digital devices and channels provide every customer an easy access to the relevant information regarding the offered products and services to the consumer and creates a perfect sense of notion for collaboration and communication. With the help of competitive analysis strategy, the business executives of Billabong have identified the present competitors of Billabong in the fashion retail industry and their existing business scenario in the market. According to Yeung and Ang (2016), every organisation in this present competitive world should maintain an active account in various social media website as it helps the company to promote and advertise their offered services and products to the targeted consumers. Similarly, with the employment of social media strategy, the marketers of Billabong will promote and launch the new fashionable products both for men and for women in Australia. Scott-Kemmis (2014) has mentioned that the clothing and fashion retail industry has reached its matured life cycle as it has encountered most of the expected challenges since few years. The fashion retail industry contributes minimum 10.23% to the nation’s economy in Australia (Bullock 2013). From the various business reports, it has been clarified that this percentage is enhancing in every year only because of the expansion of online shopping channels and websites with a perfect and successful implementation of the digitisation process.

Conclusion

The collaborative business strategy of Billabong implies its plan of continuing its business with the partner companies for capturing a large portion in the marketplace of Australia. This particular strategy will help to expand business not only various locations of Australia, however, outside of the nation. According to Webb (2014), the upshot of digitisation can transform the entire industry landscape, which offers new capabilities to the existing competitor companies within a fixed market environment. The new business operating model strategy such as resolving the customers’ problem without any charges can mitigate the identified challenges within Billabong (Au.billabong.com 2016). This strategy provides a great scope for the current consumers and the basic relationships with the suppliers. Even the e-procurement strategy of Billabong is closely associated with the sale of work, supplies, and services as it helps interchange the electronic data. With the help of these above-mentioned strategies, Billabong can achieve at least 32% market share at the end of the annual year and will be able to hold a stable market position after providing a tough fight to its competitor companies like Driza-Bone, Oroton, Ocean & Earth and Leviathan. As opposed by Hajkowicz et al. (2016), digitisation helps to expand the current business with a stable online presence, which will boost the entire scale of revenue. The company has evaluated every strategy before implementing in their business operation.

As Billabong has been founded in 1973, therefore it is very clear o understand that this specific organisation thoroughly follows the traditional mode of business operation system. At initial stage of its business, threw were fashion outlets in various locations of Australia. However, with the constant transformation in the modern technology, the criteria of the consumers and their shopping preferences, the management of Billabong has thoroughly changed their existing business operations in order to cater the technologically advanced new generation of Australia, as they are their targeted and segmented consumers. The evaluation of the strategies will help Billabong to hold its present position. Cunningham and Potts (2015) have argued that there will be always a comparison in between the continuing business system and the adopted new business process for the ultimate development of the enterprise. Similarly, in the case of Billabong, just after the implementation of the digitisation, there are few comparisons. However, in all respect the digitised version is the better for Billabong because it has developed their e-commerce website in a manner to provide services to the every social class of people of Australia. Jude (2015) has suggested that the traditional organisation often fail to meet the expectation of the customers regarding the delivery of products than the digitised organisation. Similarly, after the digitisation the entire delivery process has become easy and swift in nature. The digitisation provides relevant information regarding the products or services, which the traditional business organisation cannot provide (Katz and Koutroumpis 2013).

 In order to meet the high expectations of the customers, Billabong accelerate digitisation of their entire business operations. This company goes beyond simply evaluating its e-commerce website automated strategy and it reinvents overall business system involving reducing the number of required steps, number of documents, improving automated decision making after dealing with several fraud and regulatory issues. As opined by Featherstone (2016), business operating skills, models, structures, roles and responsibilities play a key role in the adaption of the digitisation process. Digitisation of Billabong combines its old wisdom with the new technologies and skills. Billabong has recruited new user experience designer in order to follow whether the consumers facing any issues while shopping in their e-commerce site. After implementing the digitisation, the management is capable of minimising the productivity cost by 26% and the turnaround has been improved by 12% (Au.billabong.com 2016). The back office involvement of the traditional business of Billabong is completely absent in this newly implemented digitisation process. The digitisation of Billabong has replaced the manual and paper process of the original business in the fashion retail industry of Australia with adequate software, which allows the higher management to collect and evaluate data in automatic manner for understanding the entire process performance.

Cunningham and Potts (2015) have referred that the digital performance process permit the managers and the higher authority to address the problems before it gets complex and critical. Similarly, Billabong identifies and deals with the issues related consumers shopping preferences with a detailed and justified monitoring and evaluating process. Even the marketers have engaged themselves in the social media in order to collect the feedbacks from the customers. Billabong maintains Twitter, Instagram, Facebook, Pinterest, Tumblr, Youtube and Vimeo for connecting with the customers’ every time. With the effective digitisation, the privacy policy of the e-commerce website of Billabong is completely secured and the data related to the customers and the organisations cannot be used for other purpose (Au.billabong.com 2016).

Although Billabong performs its business in appropriate manner after the implementation of the digitisation, still there are few recommendations for overcoming the potential challenges within the organisation after implementation of the digitisation process.

Billabong should overcome the organisational fears, as the departments of this particular organisation can be apprehensive regarding the use of performance measurement.

Billabong should plan the digitisation in effective manner and then execute the plan, as strategy implementation and formulation are distinguishable parts and separate of the strategic management procedure. Implementation leads the formulation; therefore, the business experts of Billabong should have understood the present trend in the fashion retail industry before incorporating strategies within their organisation in order to overcome particular challenges. However, the implementation and formulations should be interdependent and an essential portion of planning, executing and adapting.

As the sudden change management within the organisation is difficult to control, therefore, the higher authority of Billabong should provide effective training session to the employees in order to cope up with the sudden changes within the organisation because of digitisation. Even the organisation can engage efficient and potential leaders, who will help the associated employees to know that the change process is taking place only because of the development of the business operation. The management should have understood that the necessity of managing change procedure is clearly required for the incorporation of adequate strategies.

Billabong should help the employees to coordinate with the consumers and help them to shop in order to provide a best shopping experience they ever had. In the shopping website of Billabong, there are review portion of every products, where the customers can provide their important review after using their products from this particular company. The review will help a new customer to know the products from the user of it and this entire process is successful because of digitisation.

The higher authority of Billabong should offer a logical approach to the execution of digitisation as the mangers and the marketers are required to understand the benefit from the newly implemented process, as it will have a great impact upon the decision making of the management. All the strategies for mitigating the particular challenges are made with a thorough following of the organisational rules, regulations and protocols.

Conclusion

Digitisation enables a procedure, which can be reconfigured in fundamental manner as it combines the automated decision-making and the self-services that can eliminate the manual process of the business operation. In this particular study, the changed business operation of Billabong has been clearly examined. After the incorporation of digitisation, there a serious changes within the organisational structure and the overall business. The digitisation plays an important role for Billabong as it enhances the position of the company in the fashion retail industry of Australia. Even digitisation helps to determine the contemporary trends in this specific marketplace and offer products according to that trend. Digitisation tackles end-to-end customer experiences as it can be enhanced in particular areas for mitigating some burning issues regarding the customers. Digitisation can add value in terms of the constant organisational improvement after the incorporation of above-mentioned strategies. Even it has a great impact upon the business functions in different context.

References

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