The role of digital technology is rapidly changing, from being a driver of marginal efficiency to an enabler of fundamental innovation and disruption. Digitalization is the cause of large-scale transformations across multiple aspects of business, providing unparalleled opportunities for value creation. However, business leaders across sectors are grappling with the strategic implications of these transformations for their organizations, industry ecosystems, and the society.
Digital technologies are at the forefront of the current wave of disruption, enabling anytime anywhere transactions and relationships. Despite the initial skepticism, today the Digital Revolution is viewed as the next technology disruption.
Digitalization has made steady progress in the recent years, and today, it is being positioned as the new normal. While businesses are initially a bit apprehensive about making investments in digital due to various reasons, it is important for companies to embrace the opportunities and see the results going forward. According to a study by Mckinsey & Company, businesses can reap RoI of triple-digit percentages by going digital and deploying Smart Automation.
Take Cognizance of the Shift: In a world which is constantly under flux, deploying digital solutions is key. Technologies, such as Artificial Intelligence (AI), Neural Networks, and Machine Learning (ML), facilitate the evolution of algorithms embedded in enterprise systems through a process of self-learning. These cognitive technologies help in making informed decisions by quickly harnessing collective intelligence. These technologies have ushered a new era, where businesses, in a short span of time, can tap insights from their enterprise data, and at times even legacy data or dark data, to provide timely and superior customer service. Today, Digitalization (SMAC – Social, Mobility, Analytics, and Cloud) has become a core driver for disruption. In a world where immediacy as well as quick responsiveness is essential, being digital is of utmost importance, as it provides an opportunity to re-imagine a plethora of ways to provide an enhanced customer experience.
Envisage the change: In my view, Digital Innovators have a substantial competitive edge and are always in a ‘State of Readiness’ to surpass competition. By inculcating a data culture, agile innovation, and a propensity for risk, they can drive their markets in unique ways. They are in a position to detect as well as quickly adapt to changing market scenarios. They can envisage THE CHANGE that they want to see and drive the same along the tailwinds of digital disruption. Businesses, who are the early movers on the path of innovation, are highly effective at innovating and developing new solutions and business models in their incubation cells as well as through co-creation along with their Digital Partners. Most businesses are aware of the potential of Smart Automation and they are diverting their digital spend accordingly. Three years ago the enterprise budget for innovations stood at 4%, whereas today it is 14%. As per a recent study, the global technology spend will be in the range of $4 trillion by 2025.
Directive of Modern Markets: In a world of continuous change, enhancing end-user experience has become de rigueur for businesses in order to stay competitive. As increasing number of consumers are going digital, global companies are receiving a mandate from their ecosystems to go the digital way. Today, Artificial Intelligence has helped facilitate a personalized customer experience across different platforms in a bid to retain their trust. To gain an edge, more and more service providers and manufacturers are moving towards a ‘shared risk and rewards model’ through a strategic alliance with technology companies.
Future Landscape
Digital disruption is going to change the technology landscape in the next 5 years when Smart Automation and Exponential Technologies will be widely adopted across sectors. As early as 2018, most of the fastest growing enterprises will have deployed smart machines providing enhanced customer experience through simple and automated processes, reduced turnaround times, and complete transparency in all transactions. With enhanced cost efficiencies, significant reductions in operational costs, and RoI in triple-digit percentages, companies will start reaping benefits through increased revenue and long term customers.
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