Digital transformation is no longer a trend sweeping the business world but a norm that every company must embrace for survival. In fact, worldwide spending on digital transformation technologies hit $1.3 trillion in 2017 and is expected to double by 2021 to surpass $2.1 trillion (IDC). The main technologies that sit at the core of digital transformation and drive growth include AI, Machine Learning, Big Data, and IoT. Each brings a unique advantage to any business when applied intelligently.Furthermore, a Forrester report suggests that most businesses have accepted that investment in digital transformation is a necessity with 46% believing their revenue will be influenced by it completely in 2020. Going beyond various individual business estimations, the World Economic Forum suggests the value of digital transformation for both society and industry could reach $100 trillion by 2025.
Akash Khurana, CIO and CDO at engineering company McDermott International, mirrors a global opinion when he says, “We see tangible value coming from these technologies in terms of improving product optimization, increasing production output, and tackling operational efficiency challenges.”
How are businesses benefiting from digital transformation?
The world is being overrun by a ‘digital-first’ approach. For instance, Ikea and their ‘Place’ app is utilizing augmented reality. It enables customers to view how the furniture would look in their home. This elevates the customer experience bringing in a more nuanced online interaction that is more realistic and user-friendly.
IoT is also expected to make its entrance into retail with beacons directing customers to items in a store and notifying them of discounts via their smartphones. A second benefit that arises is the employment of big data that will enable retailers to understand a customer’s browsing and buying patterns.
Data continues to be utilized on a bigger scale to revolutionize the entire business process from conceptualization to customer experience. For instance, Progressive Insurance has always gathered and evaluated a significant amount of data. Its innovative auto insurance discount program, Snapshot took things to a new level with a wireless device placed in the cars. It transmits driver data to the company at one-second intervals and enables customers to get lower premiums based on their patterns. Customers were given the option of earning a discount to save an average of 10%.
Meanwhile, machine learning has made an appearance in the automobile industry at Rolls Royce. The company’s R² Data Labs initiative uses machine learning, AI, and data analytics to create new services and has delivered over £250m in value to their customers with the likes of engine-health monitoring activities to boost long-term experience and worth.
Has your organization adopted digital transformation yet?
While some companies are struggling or even resisting digital transformation others are thriving in a landscape where digitalization is breaking down all traditional norms. The basic framework of companies is undergoing a change to become more adaptive as per project requirements and all engagements are being shaped by data. In their quest for agility, companies are increasingly embracing digital transformation to enable a more swift and flexible approach to business processes. Hierarchies and silos are disappearing to be replaced by a culture of cooperation and fast team formation and disbandment of projects across all operations. As a consequence of this movement, external service providers are growing increasingly popular to enable this digital transformation journey. All of this growth and change is influenced by data that is carefully collated and analyzed to drive all aspects of daily operations, decisions, and capabilities.
Organizations can expect to become more agile, digitized, and data-driven with innovative solutions that will redefine business processes. The right digital transformation strategy along with an experienced partner can help organizations achieve their corporate vision, ensure business growth, and create value.