What is this « digital transformation » that has become such a popular catchphrase?
Well, one of the simplest ways of putting it is that digital transformation is a catch-all term that covers a wide range of business processes. It is different for every company within every sector of the economy. But in the end what it means is the integration of digital technology into every area and process of a business, fundamentally changing how it operates and delivers value to its customers.
Digital transformation – Industry 4.0 and IIoT (Industrial Internet of Things)
In this article we will discuss the different challenges and opportunities that exist across the different sectors of the economy that are being transformed by the advent of some of the latest technological trends and tools.
1. Economic, geo-political, supply-chain and consumption uncertainties – the need for efficiency.
2. The customer factor: from speed to better products, services and customer experience.
3. Competition and the disruptive impact of manufacturers who have transformed at the core
Opportunities: By 2020, manufacturers will capture 20% more aftermarket revenue by using product and service quality measures to enhance customer experiences. Embracing IIoT (Industrial Internet of Things) or Industry 4.0 – advanced data analytics, digital twins, industrial robots and collaborative robots, a.k.a cobots – means manufacturers can bring in new revenue from information-based products and services, while embedded intelligence drives the highest profitability levels.
1. Rapidly and constantly changing consumer expectations, behaviours, and preferences.
2. The presence of ecommerce behemoths as a disruptor to traditional retail.
3. The importance of Ecommerce and mobile commerce shopping preferences by consumers.
Opportunities: Personalizing experiences with IoT, augmented reality, and digital signage using data-driven marketing, supplypchain management and empowered staffing. From data and information optimization, supply chain digitalization, delivery and back-office processes to the front end where customer expectations are necessitating transformations and enhancements regarding a seamless channel-agnostic customer experience, the face of retail is changing dramatically, creating huge opportunities for innovators.
Government and public sector
1. Citizen demands are evolving and increasingly want less paper-intensive services, more mobile access, and faster results and access.
2. Providing trust in a digital age as citizens demand digital identities and transparency.
3. Attempting to minimize ballooning government program costs and bureaucracies.
4. Quickly changing demographics as populations age and millenials replace baby boomers as the drivers of the economy.
Opportunities: Massive cost-savings are possible with truly digital identities, data-driven service delivery, integrations between previously independent sectors of the government, all while providing faster, more personalized service to citizens.
1. Reducing costs while providing more consumption control to consumers.
2. Ecological and regulatory pressures as well as higher green expectations from consumers.
3. Heightened competition.
Opportunities: IoT enabled devices coupled with Big Data processing and analytics can increase efficiency, decrease waste, and provide consumers with considerably more control. This decreases costs to utilities as well as consumers, while these technologies facilitate local grids and solutions where more regional ones existed previously, enabling utilities to be more conscious of their ecological footprints.
1. Changing customer expectations and behaviour.
2. Disruptive new technologies and organizations for which little historical data exists.
3. Fast-changing regulatory environment.
4. Decreasing customer loyalty, increased customer-insurer interactions across multiple communications channels, coupled with poor industry reputation
Opportunities: Collaboration and tight integration with InsurTech firms or divisions can be an important asset. They can improve efficiency, provide ultra-customized policies and integrate data from IoT enabled devices. Using telematics and predictive risk analysis they can provide higher customer satisfaction and increased loyalty. You will also ensure better flexibility and responsiveness to regulatory changes and customer behaviour.
1. Aging population.
2. Increasing costs.
3. Increased incidence of chronic diseases.
Opportunities: Few industries will be as visibly impacted by the digital transformation as healthcare. Certainly none will impact as many people as profoundly. Telemedicine, IoT, digital twins, wearables, AI, VR, AR, and even the incorporation of blockchain technology will all contribute to a vastly improved, personalized and efficient healthcare industry capable of decreasing costs per user while delivering significantly better results, improved predictive analyses, preventative care and monitoring patients inside and outside of healthcare facilities for improved treatment regimes with less human oversight.
1. Channel proliferation.
2. Increased competition and disruption.
3. Increased customer expectation and changed behavior.
4. The presence of legacy and manual systems.
Opportunities: Digitization and the upgrade of legacy systems, including automation, is key to integrating front and back ends of the business so that currently siloed processed can become connected. This will decrease time-consuming, costly and error prone manual tasks, while providing additional avenues for data collection and cross-functional optimization. Channel funneling and optimization as well as collaborating with Fintech will provide increased client satisfaction, access to modernized technology stacks and give banks the time to leverage their regulatory know-how to squeeze competitors where possible and incorporate others where needed.
Supply chain: logistics and transportation
1. complex interconnections with a multitude of partners, processes and information flows on a global scale.
2. Speed and timing pressures as expectations from clients and customers rise.
Opportunities: The use of RFID, IoT, blockchain and cloud technologies in addition to completing the digitization of all documents and processes gives logistics and supply chain managers the ability to track, optimize, secure and more accurately predict bottlenecks and potential supply and delivery issues all the while increasing profit margins via automation and other digital technologies.
Improving productivity, efficiency, and creativity
With the internet being at the core of Industry 4.0, its importance in driving productivity, efficiency, creativity, and innovation is crucial. These factors are constantly pushing internet connectivity requirements consistently higher. Due to this, most competitive companies have come to an obvious conclusion. Only fibre optics or top-tier microwave wireless connectivity offers the speed and reliability required across their many points of operation.
With the costs of fibre internet having decreased so significantly over the years, the economic resistance to upgrading has decreased. Today, the standard, even for small businesses is quickly approaching a minimum of 1Gbps fibre connection. The advantages are clear:
1. Significantly better security.
2. Much faster uploads, downloads and access to the internet and cloud services.
3. Higher general productivity and efficiency within the average corporate processes.
At rates that are now top-line competitive with cable and DSL offerings, the choices have been made much clearer. Even the most conservative companies, aiming to facilitate their growth, security and competitiveness, are upgrading to fibre and/or microwave wireless.
So what’s digital transformation really about?
As we’ve seen, the digital transformation is about much more than how fast you can access the internet or your digital assets and resources. It refers to the cultural change within organizations and business communities that encourage individuals to continually challenge the status quo. It is about minimizing the stigma of failure, thus encouraging companies to regularly experiment with novel concepts to facilitate innovation.
It’s also about upgrading legacy systems, digitizing analog records, automating processes and creating a robust, scalable, and efficient digital infrastructure. The keys to doing this often involve:
1. Securing a quality hosting environment for private servers.
2. Ensuring a robust backbone upon which to lay the foundations of your IT infrastructure.
3. Integrating disparate systems and software into a cohesive private cloud.
The above are the foundation for truly global access, improved security and archival purposes, enhanced processing and storage resources, IoT platforms, and data gathering.
Digital transformation is about embracing the benefits that integrated computing systems can provide for your staff and your clients. Incorporating technology and data within your corporate culture can significantly increase innovation and performance across all processes and KPI.
Even without the integration of nascent technologies whose acronyms flood tech blogs, such as AI, AR, and VR, the clear takeaways in terms of what Digital Transformation means for a wide range of industries is clear. The integration of massive amounts of IoT technology and big data will allow industries to benefit from Industry 4.0 movement. Personalization, transparency, increased control to consumers, reduced operational costs, and streamlined service delivery to consumers and citizens is the goal. All of that requires high-speed, high-reliability data transmission services across all points of operations within an enterprise or organization.
Openface, is at the forefront of the industry. We help our clients wade through the complexities of connectivity so that we can provide the most effective tailored solutions. Whether your goals are the creation and maintenance of a private cloud, the integration of digital telephony to simplify your comm channels, the upgrade from legacy systems, or the connection to 3rd-party services, we have the expertise and experience to guide you, and the tools required to provide turn-key solutions. While digital transformation is predicated on the use of technology, in the end, it’s really about empowering staff and clients. It’s about continuous optimization, holistic improvement and a focus on what people need, far beyond the digital context. Who better to help you achieve those goals than the company that bills itself as the « Human face of technology ». Openface is at your service.
Contact us today and find out how we can help you achieve your digital transformation goals.
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