Along with the digital revolution comes a different thought pattern with regards to operations and manufacturing that digital transformation consultants need to keep in mind. Global production and the distribution decisions associated with it are influenced by new challenges pertaining to energy costs and logistics. Emerging technologies such as AI, big data and analytics, Internet of Things, additive manufacturing and robotics are altering the value proposition and capabilities of global manufacturing. As a result, operations and manufacturing needs to be digitally renovated: the value chain needs to be retooled and redesigned while the workforce needs to be trained again. There is a need to figure out the best places to position sources of supply, assembly operations and manufacturing around the world by analysing the total delivered cost. Simply put, there is a need for digital transformation services.
The revolution of business processes, activities, models and competencies so as to take advantage of a variety of digital technologies, and their increasing effect on society, in a prioritized and strategic way is called digital transformation. Digital transformation services are also required to bear in mind present and future shifts.
The journey of digital transformation needs an approach that is staged along with a road-map that is clear, involves all stakeholders, and works around internal/external limitations and silos. The road-map needs to account for the fact that end goals are constantly moving given that digital transformation is a continuous journey, just like digital innovation and change.
Following are some emerging technologies for rapid digital transformation:
- Internet of Things (IoT)
What is IoT? It is a scheme of interconnected Sensors, Physical objects, Actuators, People, Virtual Objects, Platforms, Networks and Services that have individual identifiers and are capable of transferring data independently. Examples of IoT include remote patient monitoring, precision agriculture and driverless cars. In other words, IoT is the system of “things” that not only collects but also exchanges information from the environment.
Industry insiders often refer to IoT as the force behind the fourth Industrial Revolution (Industry 4.0). IoT is also known to have caused technological changes that impact a whole range of fields. According to forecasts by Gartner there will be 20.8 billion connected things being used all over the world by the year 2020. Developments in IoT are bringing about sensational opportunities that will make lives easier while making processes efficient, productive and safe for a lot of businesses. Digital transformation consultants can take advantage of this.
Due to the following reasons Digital Transformation and IoT have a close relationship:
- Over 50% companies believe that IoT is strategic, whereas one in four companies think that it is transformational.
- Both IoT and Digital Transformation have a positive impact on company longevity. A company’s average lifespan has gone down from 67 years in the early 1920’s to 15 years today.
- By end of 2018, digital disruption would have touched one in three industry leaders.
- Both digital transformation and IoT make it possible for businesses to connect with partners and customers in open digital ecosystems, to impart digital insights, to work together on solutions and jointly enjoy the value created.
- The competition is indulging in IoT. As per to IDC, by 2019, 70% of global discrete manufacturers will be offering connected products.
- There is money in IoT and digital transformation. Digital product and service sales are on the rise and by 2021 they will be representative of more than $1 of every $3 that is being spent.
- Digital assets and data are becoming overwhelming for enterprises. They are struggling to manage the digital assets and data that they already have, and IoT will help them exponentially in expanding. Enterprises need assistance in identifying the insights in the expanse of data and in managing digital assets.
- Both IoT and digital transformation drive consumption. The worth of digital services is easily proven. To make consumption easy, digital services and content can be bundled with products.
- Digital transformation and IoT help companies better understand their customers. To predict, uncover and meet customer needs and to increase revenues and loyalty, companies should use integrated channels, predictive analytics, big data and machine learning. Artificial Intelligence and IoT are the building blocks of this.
- Employing both IoT and digital transformation makes the business future-proof. The use of IoT data analytics, Artificial Intelligence and visualization can be made to make the correct strategic bets for the enterprise, product and service portfolio as well as future investments.
- Blockchain and AI
Companies can find digital transformation challenging and complicated, but it can be made easier by taking the help of digital transformation consulting services who can integrate AI and blockchain for their businesses. Keeping in mind the number of internal and/or external partners that are involved in any business process, a system that allows a host of electronic parties to communicate, transact and communicate in a secure manner without any human involvement is highly efficient and agile.
If enterprises want to provide an improved user experience with streamlined operations and a more consistent workflow along with value-added services (while gaining a competitive advantage and differentiation) they would do well to embrace digital transformation, AI and blockchain.
Blockchain has the capability of holistically managing relationships and steps where participants are sharing the same data source, for example financial relationships and transactions that are connected at every step, while factoring in accountability and security as well as internal processes and rules along with compliance of government regulations. As a result, risks, costs and time delays are reduced while consistency and improved quality is achieved.
If companies want to accelerate innovation, then AI can help. It also helps companies get closer to their customers and boost employee’s engagement and productivity. With this information, efforts of digital transformation can be improved.
Digital transformation services depend on the following building blocks: people, mindsets, tools and process. IoT covers all of these blocks since it doesn’t only connect devices but also connects people. Blockchain ensures end-to-end security, while AI helps move IoT over and above connections and towards intelligence. An important aspect to keep in mind is to make a team with the best partners and invest in training, certifying and educating your teams. A good mix of these emerging technologies (IoT, AI and Blockchain) will help ease digital transformation.