Technology’s Role in Digital Transformation

For enterprises disrupting the marketplace, technology is the key enabler that is helping them create new business models and processes. Open source software has played an enabler role in developing these new scalable and high-performing systems. From the digital transformation perspective, following four levers play an important role.

• Connected – with the advent of IoT everything is getting connected. All this data is being transmitted over mobile and fixed bandwidth networks where the enterprises are making sense out of it leading to real-time decision making. New service models are being created around data. E.g. Rolls Royce aircraft engines capture data around the engine performance which can be given as subscription to airlines for predictive maintenance. This data can also be used to develop models for better engines.
• Data – All the data from Things, device location, social interactions etc needs to be captured, processed and analyzed for patterns, behavior discovery to allow better predictions and decisions to be made.
• Automation – Given the scale of the systems and data being emitted/generated for analysis, automation is the key enabler. Traditional technologies need to be combined with Artificial intelligence and machine learning models to increasingly create systems that can work autonomously. Lots of supervisor roles can be automated using the AI models. E.g. Uber has eliminated the complete middle management role found in a traditional taxi services company.
• Users First – All the data and automation need to be used to build and provide contextualized products and services for the users. Enterprises or intermediaries can get direct access to users/customers via mobile apps. Users can have fully transparent access to their data and enterprises can offer services around that. E.g. Tesla have built a model for direct selling of cars to the end customer bypassing the franchise/dealer network. This allows them to understand the customer behavior and usage of car. They can sell additional services based on the user context.

It is still early days of digital transformation. Lots of enterprises are taking steps with digital as digital marketing which is a very narrow and siloed focus. Digital transformation is about rethinking the business, operational and technology processes (e.g. customer onboarding, customer cross/up sell, customer service, core products/services etc). Technology is the key enabler and drives the entire business model in the digital economy. Every company is being transformed in a technology company where technology is enabling all these digital interactions.

This post originally appeared at www.techspot.co.in