Digital Transformation for Industries
Digital Transformation for Industries
Having a conclusive strategy is a primal driving force for a successful Digital Transformation of any business.
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Digital Transformation Services Strategy for Industries
Digital transformation provides industry with unparalleled opportunities for value creation. It used to take Fortune 500 companies an average of 20 years to reach a billion-dollar valuation; today’s digital start-ups are getting there in four. Digital technologies are creating new profit pools by transforming customer expectations and how companies can address them.
At the same time, digitalization could produce benefits for society that equal, or even surpass, the value created for industry – the mass adoption of autonomous vehicles and usage-based car insurance, for instance, could save around 1 million lives by 2025. At present, digital transformation is not well understood, and a number of myths are obscuring the path to realizing its potential for value creation. The initiative demystifies some of the most common myths about digital, revealing, for example, the true extent of disruption by digital start-ups and how the impact of automation on employment is likely to be very different from today’s received wisdom on the subject.
Digital Transformation and Technology
The digital revolution is already transforming many aspects of business and even whole industries. Just as the steam engine and electrification revolutionized entire sectors of the economy from the 18th century onward, modern technologies are beginning to dramatically alter today’s industries. Previous industrial revolutions have had huge societal impacts, supporting an explosion in the world’s population over the past 200 years. The global population has doubled in the past 50 years and is forecast to grow to 11 billion by the end of the century. It took until 1804 for the global population to reach 1 billion. The most recent addition of 1 billion people took just 12 years. To keep up with increasing demand, technology has had to accelerate. It has been frequently observed that improvements in computing power have largely kept pace with Moore’s Law. After four decades of exponential increases, the world is now doubling an immense amount of processing power in every two-year period, which is leading to astonishing leaps forward in technological capabilities.
As technology becomes ubiquitous and accessible to the wider population, it is having a profound impact on how customers behave and the expectations they have. Customers across the B2C and B2B worlds are developing an insatiable demand for speed, convenience, contextualization and non-stop connectivity. Further, as newer generations are raised as “digital natives,” they are not only harder to surprise, but can also imagine for themselves how technology can be used to improve their lives. It is possible that children born today may never need to drive a car due to autonomous-driving technologies. It is even possible that humans will colonize Mars within a generation. Digital transformation provides industry with unparalleled opportunities for value creation from expanding profit pools, creating new revenue models and enabling unprecedented access to global markets. It used to take Fortune 500 companies an average of 20 years to reach a billion-dollar valuation; today’s digital start-ups are getting there in four.
Digital Technologies and Business Models
A business transformation is digital when it is built on a foundation of digital technology. This focus on digital technology is distinct from other potential transformation drivers such as political, social, cultural, or economic shifts. The technologies and business models that underpin digital transformation are not fixed. They vary over time and also, to some extent, by industry sector and geography. Currently, the following technologies are most significantly associated with digital business transformation:
- Analytics tools and applications, including big data,
- Mobile tools and applications,
- Platforms upon which to build shareable digital capabilities, like cloud solutions and app marketplaces, • Social media tools and applications,
- The Internet of Things, including connected devices and smart networks.
Together these digital technologies, often cumulatively referred to as the Internet of Everything, is having a profound effect on how organizations and industries are transforming, often as a result of new technology-enabled business models.
Let’s take the Digital Transformation in healthcare sector for example. Social media and the Web are rapidly reducing the information asymmetry between patients and healthcare professionals, shifting power away from physicians and moving it to patients and caregivers. Mobile applications and devices allow for real-time monitoring of health status, and can provide live links to healthcare professionals. Proteus Digital Health, for example, measures real-time vital statistics from a pill that a patient swallows 3. Analytics tools can assess and analyze information to diagnose, treat, and monitor patients, and big data is leading the charge to personalized medicine. Pharmaceutical companies and other life science players need to transform themselves to take advantage of these trends, since digital transformation services and solutions is facilitating the entry of non-traditional competitors into the health and wellness domain, including IT firms and food companies.
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