- November 11, 2019
- Posted by: Ramkumar
- Category: Digital Transformation
Enterprises are becoming digital business
With digital disruption, every company will become a digital business. Let us look at how technology continues to disrupt different industries. Retailers have mobile apps and ecommerce platforms. Banks are entering into cryptocurrency. Customers can order online from grocery stores and can get it delivered to their home. Hence all companies are using technology to make their operations more efficient. They are using technology to provide attractive products and services to customers.
Digital business transformation
Companies from every industry and sectors are focusing on digital transformation initiatives. In that sense every company is trying to become a digital company. In order to be successful in digital transformation, companies need to create a digital strategy inside of the enterprise and across industry verticals. To achieve this, companies need to be early adopters of new technologies to power their business. If they are late then they need to waste time and money to get ahead in the race.
In order to be truly a digital company, Companies need to build the ability to develop their own digital IP. They need to develop exclusive software and tools that only their customers have access to. Companies need to focus on utilizing their scarce resources in building an IP. They need to move their scarce resources away from working on a service that is commoditized. Then companies need to develop technology that both they and their customers can trust. They need to build strong security to their new products.
Every company in the future will become a software company. For instance, Microsoft shifted its focus from its Windows operating system and devoted more resources to developing web based enterprise technologies. Its business model now relies on enterprises wanting to become tech companies. Microsoft is then selling its products and services to these companies. For instance in cloud business, Microsoft competes with Amazon to convince businesses and government agencies to entrust their data storage to its Azure cloud. Last month Microsoft won a $10 billion cloud services contract with US department of defense after an intense battle against Amazon.
Three major technological shifts
Companies will need to harness three major technological shifts in the coming years to succeed as Digital enterprises. The ability to have powerful computing capabilities in many different kinds of devices is essential. Then companies need to leverage artificial intelligence to make sense of all the data that is generated from the computing. In future people will have multiple devices that interface with their various senses. Some of these examples include smart speakers and augmented reality glasses.
Future for digital business
All companies will become digital business in future. To become successful, companies need to have powerful computing capabilities. Then it needs to use AI to deliver personalized stakeholder experiences. As we are moving towards a multi-sense and multi-device world, all these experiences needs to be available in multiple devices and channels.