Overcome the Challenges of Digital Transformation with the Digital Experience Platform (DXP)

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20/5/2024

Building digital channels has its challenges. The process is often expensive, slow, and in the worst case, the result may not fulfill its purpose, with a redesign possibly meaning starting over from scratch. However, there is a modern and efficient approach that is quickly gaining popularity.

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Most companies in the Czech Republic build their websites and digital channels either through custom development or using content management systems. Both paths have their pitfalls and, ironically, often end similarly:

The newly built applications exceed the budget and schedule, and in the worst case, the results do not meet the defined business objectives.

  • Redesigns can be a nightmare—potentially meaning discarding everything and starting anew.
  • Changes cannot be made without IT involvement.
  • Using a product involves vendor lock-in with licensing costs, while custom development brings growing technical debt.

Most companies face these same problems. Upon reflection, we need a technical solution that will help us and will meet the following requirements:

  • Allows the physical construction of one design system that can be reused across applications.
  • Does not impose its own design workflow—fits all.
  • Basic modifications can be handled by an educated user.
  • Comes with essential features common to all applications (SSR, server-side tracking, A/B testing, search, caching, persistent forms, AI-based content personalization, etc.).
  • Is genuinely modular, and features can be assembled as needed (important for future upgrades).
  • Is as open as possible without significant vendor lock-in.

The Digital Experience Platform (DXP) meets this need. It implements a design system, works with any design workflow, adjustments can be managed by "business technologists", basic functions are ready-made, and the platform can be modular and open. This modern approach could be the "low-hanging fruit" in terms of investment efficiency. Additionally, you can choose from two variants: either purchasing it as a ready-made product or building it with your own resources.

[.infobox]Our global experience and surveys from analytical firms confirm that although these technologies are still in the early mainstream, they have already penetrated the SP500 company segment by tens of percentages.[.infobox]

Combining CMS and Vertical Integration

What exactly is the basis of this approach? Functionally, it is an evolution of content management that logically began to address consistency between applications over time, eventually incorporating vertical integration into services and data with the involvement of cognitive functions and personalization, to completely resolve the customer experience (CX). Additionally, it can also target the consolidation of internal application employee experience (EX).

It is crucial to emphasize that this is not the application layer you know and probably already operate under names like “Business Logic Layer,” “Composable Business Logic,” “Omnichannel,” and similar. We are talking about functions for frontends that all web or mobile apps use to deliver functionality to users, and especially to their owners. The cornerstone is simply the integration of content management and supporting services, without which the mentioned useful functions cannot be operationalized. Naturally, this includes a graphic interface for their management.

Is such a platform suitable for every case?

No solution is suitable for all situations. Therefore, it is important to ask when it makes sense to deploy a DXP. The need for a DXP arises from the requirement for intensive modifications in applications, reducing IT involvement, and operating multiple similar applications at once. A specific argument is the existence of a Design System, which is itself fundamentally crucial to DXP. In contrast, situations leading to custom development or a simple CMS involve an isolated application that will no longer be optimized and where there is good availability of IT resources.

If you opt for DXP...

If you decide to go for a Digital Experience Platform (DXP), the question arises as to which variant to choose. Ready-made products are offered by numerous vendors, and manufacturers compete to claim their product is the most feature-rich. More integrated vs. modular, ready for deploying finished applications vs. more customizable. One potential hurdle could be the typically higher licensing costs of a product-based solution. Nevertheless, although this area is rapidly developing, these systems are already very advanced and stable.

The second option is to choose custom development, where essentially only two viable paths are offered: either undergo evolutionary development from a bare CMS towards a DXP or start building DXP functionalities directly. In both cases, however, an inviolable rule applies—build incrementally, according to gradually mapped real needs and growing experience. A well-intentioned explosion of hundreds of demands from the drawing board inevitably leads only to the problems mentioned at the beginning.

Business benefit: flexibility and significant cost savings

The most tangible benefit of DXP platforms is the economic impact on development and operations. For example, with our DXP Raiffeisenbank has carried out three redesigns of the public website in the past 10 years with costs kept to a minimum. The VIG insurance company, specifically its customer brands Kooperativa and ČPP, used DXP to create a multitenant customer zone and today deploy new client applications at significantly lower costs than independent development.

These platforms are mainstream technology, offer specific economic benefits, and their usage is simpler than it might seem at first glance. If you are interested in this topic and are planning to upgrade client or employee applications, connect with us and we will discuss the details.

Author

Oldrich Kotas
Head of Digital Channels, Trask
Contact: okotas@thetrask.com

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