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DIGITAL TRANSFORMATION #1 (Planetary Issues (Resources are running out…
DIGITAL TRANSFORMATION #1
What is digital transformation?
“Digital Transformation is characterised by a fusion of advanced technologies + the integration of physical + digital systems, the predominance of innovative business models + new processes, + the creation of smart products + services” [EU 2018]
“Confluence of 4 technologies - elastic cloud computing, big data, artificial intelligence + the internet of things” [Seibel, T 2019]
The integration of digital technology into all areas of a business, fundamentally changing how a business operates + delivers value to customers
Pressures to undergo digital transformation include: customer demand, competition, planetary issues + profit
Planetary Issues
Resources are running out [peak oil/water]; inefficient use of these precious resources; our survival probably depends on transformation
Digital Transformation improves sustainability w smart homes: can control thermostat from anywhere
Can improve sustainability in supply chains: can use apps like EcoChain who will help assess the whole sustainability performance throughout the supply chain, + give tips on how to improve it
Increases mobility: with clouds + as-a-service providers, employees can access software and files from virtually anywhere. Decreases commute-time emissions, energy consumption, overhead costs etc. Move towards telecommuting
Digitized processes can significantly reduce CO2 emissions bc they minimise the need for some resources [e.g paper] in manufacturing as well as logistics
Profit
Could save costs e.g empty trucks could be utilised by freight exchanges
Can increase income: predict demand - know what, when, where to do things, product specifications
Unique products: market differentiation and possibility of charging more
Customer Demand
Multi-channel experience: can provide 24/7 customer service through different channels e.g social media, in-store etc
Nowadays mobile apps, devices etc allow customers to get what they want pretty much instantly. This means customers are aware of what they can do with technology, + often rate companies on their digital offerings first
Can use a CRM system to get a good understanding of customers by analysing their previous interactions w your company. This can be used to create highly targeted messages to meet their individual needs = more personalised experience
Customisation: new digital interfaces allow definition of customisations. Predicted by AI with all the data from the relationship. Can build with 3D printing to the specification of the individual
Competition
Leading companies understand that a complete digital transformation is essential in staying ahead of the competition
Cloud-based business apps allow companies to be more efficient, increase innovation + get access to new insights. By removing manual processes, companies can achieve increased sales performance, market differentiation and increased employee productivity
Competitors may transform leaving you behind, or they may not transform to save money/effort
New tech makes this disruption commonplace - need agile business processes to grasp new opportunities quickly