Digital Transformation : Pathways to Accelerate Business Innovation

The acceleration in businesses assisted by digital transformation is in exponential progress mode and with that, business innovation seems to be a bright spot we’re aiming for

Remember all the cutesy stone-age things from Flintstone – we have moved light-years away from it. A figure of speech there but indeed, the forward movement has been quite a speed-up ride. There is no denial that innovation is the word, the world is clinging to avoid being sucked into the stagnation worm-hole.

This paradigm shift has pushed business leaders around the globe to align with this promising revolution. The transition which businesses across the globe are either welcoming or planning to incorporate, is all about integrating technology in their processes to transform their practices. And the rate of speed of transformation which is expected is proportional to the speed of generating new ideas. In a nutshell, business transformation led by innovation is leading to digital transformation of businesses.

Transformation – Acceleration – Innovation

Every shift from the regular or every inertia overcome, brings some new challenges on board that further brings in a new flair into the ecosystem. The desired and the practiced level of incorporation of transformation may vary from organisation to organisation but every stream is leading to an anticipated goal – innovation. That means, we are talking about new products, business blue-prints, services and internal procedures – leading to overall sustainability of the business in the face of changing industry dynamics.

snehashish-bhattacharjee-digital-transformation

Snehashish Bhattacharjee, Global CEO, Denave

Let us understand the major digital transformation trends that will create a key impact in accelerating business innovation in coming years:

Leveraging Data Analytics to carefully gauge future investments

Today, most of the digital transformation revolves around data-driven algorithms. Thus, most of the organisations are required to operate in hybrid manner with conjugating facets of analytics, data and applications that spreads across the industry.

For instance, data-driven processes in an online retail setup execute various functions like matching of the products with consumer requirements, calculating the satisfaction metrics of customers with the services and deciphering how much and what kind of products the company should showcase to them based on their behavioural insights and past shopping patterns.

#Takeaway: All this is possible with a well-crafted data analytics strategy (in conjunction with IoT leverage) – that not only makes the process smoother but also aids in exploring the new propositions and generate novel ideas for fruitful investments.

AI is going to be a massive tool for investment decisions

With AI, on one side employees are worried about robots taking up their jobs and on the other side, C-suite executives are preparing to account their future profit with the immense capabilities that AI brings on to the table.

In 2020, 85% of the customer interaction will take place without any human interference.
Similarly, by 2018, 45% of the companies will implement smart machines and virtual agents to benefit business processes.

Well, till now AI has been recognised as a consumer-facing state of affair – popularised by Chatbots. However, by 2020 and beyond, it will be focusing majorly on speech identification, decision administration, deep learning platforms, and natural language generation and processing along with robotic process mechanisation. Moreover, the related applications will also aid companies to enhance their bottom line, specifically in the spectrum of marketing, analytics, customer service and robotics.

There are many large companies – especially the QSR industry and cab aggregator services that are already deploying AI in most of their applications. In fact, AI is being used, though much of it is still in an infancy stage, to deploy workforce in congruence with the desired expertise and changing demand structure. This flows from the biggest benefit that AI has enabled – observing and predicting the traffic flow and customer behaviour with good level of accuracy.

#Takeaway: AI will help in evaluating the most productive investments to be made and avoid wastage of time and money in non-efficient areas.

Machine-to-Machine communications will generate IoT demands: Communication has evolved over the years and with the digital transformation, it only took few decades for manual administration that was earlier driven solely by human communications, to be replaced with smarter and computerised platform known as machine-to-machine (M2M) communication.

According to recent market research, the entire M2M connections market is anticipated to be worth USD 27.62 Billion by 2023, rising at a CAGR of 4.6% from 2017 to 2023.

The presence of M2M connectivity- enabled products like wireless beacons, MPoS devices and health monitoring devices, would be a major supporting factor to drive growth in M2M connections’ market. No wonder, the wireless connection is predicted to grab big market share by 2023.

This technology development, will certainly alter the way businesses monitor, manage and automate critical business processes across multiple geographical boundaries. IoT is predicted to act as a middleman in the entire process – enhancing efficiency and increase productivity. It will also help in lowering CAPEX and OPEX bringing in cost optimisation. Additionally, it will enable marketers to locate, reach and engage prospective clients and customers on sound market strategies.

#Takeaway: The IoT adoption in amalgamation with M2M applications shall help the companies to accelerate the process of digitization while maintaining pace with the rest of the world. It offers tremendous scope for growth and companies will need to deep dive into the scope of opportunities to be able to create an end-to-end IoT ecosystem.

Conversational UI leading the path

Before the advent of chatbots, customers were assisted by shop associates during their visit to any retail shop. Thus, the queries were addressed by manual intervention led processes. However, with the advance in technology, conversational interface or UI now provides much greater experience and interactions with the customer.

As per the Capgemini survey report, in the coming three years 40% of customers will use conversational UI rather than opting for a website or app (compared to 24% in today’s scenario) and 31% will use a voice device as a substitute to visiting a store or a branch (compared to 20% today)

A conversational UI is considered as a shift of the old age of communications which was attained by commands or clicking icons with an innovative age wherein queries and demands of a customer now gets fulfilled by talking to chatbots itself, that too in natural conversational language.

It is expected in near future; a conversational interface will take on-board questions and queries and will provide an automatic solution related to the interest of the customers. Armed with precise language processing abilities, the bots will act as an extended functions of the messenger in order to resolve customer issues besides supporting them as a friendly shopping companion.

#Takeaway: Looking into the future, the language and reasoning context is going to blend with big data and machine learning capabilities to provide a path for conversational user interface – that will understand the customer needs and wants in a far better way.

Blockchain will pave the way for safer e-commerce

As we move further, blockchain, now an emerging technology may become conventional. It shall be used in several industries including real estate and intellectual property protection as well, and thus will aid in managing the growth in other sectors too. Retail entities may use blockchain to decentralise their operations and personify as middle man connecting buyers and sellers. Thus, eradicating the middleman and associated fees.

IDC report states that by 2021, 25% of the global 2000 companies will use blockchain services as the substance for digital trust.
Also, by 2020, 25% of global transactional banks, 30% of manufacturing and retailers and 30% of healthcare organisation will use blockchain in production.

Blockchain ledger secures the data from getting hacked or changed without authorization. It also fortifies the cloud storage making it more safe and robust against any attacks.

#Takeaway: Blockchain has the probability to alter the groundwork of the entire economic system, thereby eradicating the current business problems related to the security exchanges and built-in reputation management system.

No doubt, 2018 is the year of disruptive technologies and innovations that will act as a game changer for many big players as well as provide a pot of gold for various innovative start-ups. Although right now there are some sceptics pointing to security threats but with the evolving trends- the gaps shall hopefully be rationalised and render remarkable outcomes. So, the acceleration in businesses assisted by digital transformation mentioned initially is in exponential progress mode and with that, business innovation seems to be a bright spot we’re aiming for.

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