The race to digitalization is faster than ever before: A recent study by PwC stated that 91% of industrial companies are investing in digital factories and 72% of companies plan to implement breakthrough Industry 4.0 solutions.
Most industries including steel, construction, healthcare, retail, finance and insurance are ripe for disruption. Emerging technologies are powering entirely new platforms and ecosystems in order to change the trajectory of a business.
So, the question is, what will be enough to succeed in a digital world? The top priority for businesses to keep up with the pace of change is to forge dynamic digital ecosystems. A curated intelligent body of interconnected devices, applications, and services will deliver hyper-personalized customer experiences and in turn drive growth and profitability.
Gartner study on digitalization predicts that by 2020, 30% of web browsing sessions will be done without a screen. Organizations that move from analog approaches to always-on operating models, open collaborations beyond their company borders, and co-innovate with third parties will witness greater diversification.
The blending of traditional and modern technologies to build future-forward experiences will urge the development of responsive, outcome-based models. Whether it is accounting or marketing automation, emerging technologies are presenting companies with an accelerated ability to initiate, develop and support new services and pricing models. This new approach of agile monetization will increase revenue streams via new, innovative approaches.
Digital Ecosystems: The Shift from Analog to Algorithm
Adopting emerging technologies, industries are building dynamic networks inclusive of diverse systems, services, and capabilities; gaining end-to-end visibility and flexibility.
Banks – With FinTechs moving into commercial and corporate banking, incumbent banks will need to offer more than what users could previously get, thereby, increasing convenience and cost savings. Building an ecosystem, integrating services from an array of providers to fulfill a variety of needs in a single cohesive experience is the way ahead. It will not just enhance customer loyalty but will also generate revenue.
Example: Bank of America’s Digital Mortgage Experience, launched recently, guides clients through the mortgage process via mobile banking and online platforms. This intuitive solution empowers their clients with convenience and control, while also providing customization throughout the process to best fit users’ unique needs.
Supply Chain – By the end of 2020, one-third of all manufacturing supply chains will be using analytics-driven cognitive capabilities predicts the research by IDC. From analyzing real-time data to optimizing deliveries, digital ecosystems could improve service levels and meet the increasing levels of customer expectations. Also, taking advantage of cloud-based or blockchain-based ecosystems, businesses could lay a foundation fit for the future and increase supply chain reliability.
Example: Relay, is Amazon’s first trucking app, and is designed to make trips to Amazon warehouses faster and more efficient. Also, using QR code to perform pre-checks, it gives Amazon better visibility into the current location of its deliveries, and can better prepare for arrivals.
Mobility – From digital keys that are accessible via a smartphone to cloud-based driver profiles, the mobility ecosystem is connecting people with their cars in many new ways. Emerging technologies and the ubiquitous network allow automotive manufacturers and OEMs to approach monetization in new ways. Integrated mobility management systems or activating digital services in areas such as infotainment, asset monitoring, or intelligent vehicle safety offers added value and generates additional, long-term, post-sale revenue.
Example: The level 5 autonomous concept car by Rinspeed showcases transformative digital cockpit experiences from both HARMAN and Samsung. It extends personalized experiences specific to each user's needs, from the colored lighting in the car to the music playing and everything in between.
Logistics – A digital logistics ecosystem comprising of the cloud, Internet of Things (IoT), analytics, automation, and other digital technologies allows seamless, end-to-end flow of information. It establishes real-time connected processes and offers decentralized, autonomous management. The ability to accurately forecast requirements, drive efficiency, and lower cost will allow business to customize their logistics network and achieve competitive advantage.
Example – Maersk Line’s reefer innovations is helping them to successfully execute last mile delivery for reefer exporters. Utilizing the latest reefer technologies, they are not just adding tremendous value to their customers but are also the first to introduce export and import services with Store Door facility across locations.
Connected Everything: The Road Ahead
Companies that are going beyond the expected and extending their range of services are shaping the next-gen digital ecosystems. With an aim to create unique value, businesses are paving the way with innovative, hands-on approach:
- They are shifting from inflexible business architecture or processes to robust digital platforms with more third-party involvement.
- Future-proofing against disruptive change, businesses are building short-term roadmaps that provide flexibility and scalability in reaching their long-term goals
- Using a data-driven approach to monetizing digital platforms, businesses are reinventing their organization’s revenue potential.
- Embracing modern technologies like advanced analytics and machine learning to streamline processes, deliver better business outcomes, and new digital customer experiences.
Become Digital Disruptors—And Not The Disrupted
With disruption comes unprecedented opportunities for businesses to refocus themselves. We believe that a tool to navigate through this complex business transformation is by moving towards an ecosystem-based approach.
Acting now could be the difference between survival and extinction. Utilizing intelligent technology platforms and developing smart application and services that allow users to move between interconnected environments will open doors to the digital future.
Let our team of experts help you explore the emerging digitalization opportunities and demystify your journey toward building a robust digital ecosystem. Backed by extensive experience, insight-driven strategies and tools, we can help you by digitally reinventing your business and unlocking new value.
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