20th Nov, 2018
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Remember all the cutesy stone-age things from Flintstone – we have moved light years away from it. A bit of figure of speech over there in terms of lightyears but indeed, the forward movement has been quite a sped-up ride. There is no denying that innovation is the word world is clinging by today to avoid being sucked by the stagnation wormhole.
This paradigm shift has pushed the business leaders around the globe to create a similar rhythm in alignment with this promising revolution. The transition which the 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 or is being aimed to be achieved is proportional to the speed of ideas. In a nutshell, business innovation of business transformation can also be referred to as digital transformation or to have a more syncretic meaning – Digital Business Transformation.
Transformation – Acceleration – Innovation
Every shift from the regular or every inertia overcome brings some new challenges on board that creates a new flair into the ecosystem. The desired and the practiced level of incorporation of transformation may vary from organization to organization but every stream is leading to the anticipated goal – Innovation.
That means we are talking about new products, business blueprints, services, and internal procedures – leading to the overall sustainability of the business as per the changing industry dynamics.
With the ongoing set of developments in the business landscape, 2018 is seeming to be a year which is marking remarkable changes in these dynamics at the roundabout of technology and business. However, the bridging of this gap entails a better understanding of the burgeoning trends.
Now, let’s have a sneak peek and 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 innovations revolve around data-driven algorithms. Thus, most of the oorganizations are required to operate in a 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 the 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 – that not only makes the process smoother but also aids in exploring the new prepositions and generate novel ideas for venturing in the fruitful investments.
According to Business Insider, 90% of the population will be entitled to have the unlimited and free data storage in the cloud
Artificial Intelligence is going to be a massive tool for investment decisions
With Artificial Intelligence, on one side employees are worried regarding the troop of robots taking up their jobs and on the other side, C-suite executives are prepared for accounting their future profit with the immense capabilities that AI brings on to the table.
Well, till now Artificial Intelligence has been recognized by most of us as a consumer-facing state of affair – a.k.a Chatbots. However, by 2020 and beyond, it will be focusing majorly on speech identification, decision administration, deep learning platforms, natural language generation, and processing along with the robotic process mechanization.
Moreover, the related applications will also aid the companies to enhance their bottom lines, specifically in the spectrum of marketing, analytics, customer service, and robotics.
For instance, giants like Starbucks and Uber are already deploying AI in most of their applications. In fact, they are using AI not only to match the workforce with demand but also to observe and predict the traffic flow and customer behavior.
Takeaway: With immense analyzing actions, AI will help to evaluate 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 being the necessary element in our day to day existence has evolved within the last 50 years. No doubt, it had a great impact on the traditional business processes as well.
Moreover, with the digital transformation, it only took few decades where manual administration driven by the human to human communications is now being replaced with smarter and computerized platform known as machine-to-machine (M2M) communication.
This wireless connection is assumed to hold a great market share between 2017 to 2023. Likewise, with the presence of this connectivity- enabled products like wireless beacons, MPoS devices and health monitoring devices, there will be a major factor to drive growth in M2M connections’ market.
This development as a technology, will certainly alter the way businesses monitor, manage and automate different business processes which are now critical in nature across multiple geographical boundaries. No wonders but IoT will act as a middleman in the entire process – as it will enhance the efficiency and increase productivity.
It will also cater to a major role in Business to Business sales industries by lowering the CAPEX and OPEX to ensure result-driven growth. Additionally, it will make easier for the marketers to locate, reach and engage prospective clients and customers by building up the market strategies.
Takeaway: The IoT adoption in amalgamation with M2M applications will definitely help the companies to accelerate the process of digitization while maintaining pace with the rest of the world. Hence, with the tremendous scope for growth with this emerging technology, companies will require taking a deeper dive into the opportunities so as to create an end-to-end IoT ecosystem.
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.
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 used to get fulfilled by the manual processes. However, with the advancement of technology, conversational interface or UI now provides much greater experience and interactions with the customers.
A conversational UI often provides the privilege of interacting with the computers on human terms. It is considered as a shift of the older 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 the coming future; a conversational interface will take on-board questions and queries and will provide an automatic solution related to the interest of the customers.
For instance, Sephora, a well-known makeup retailer, has recently collaborated with augmented reality tech firm to create ‘Sephora Visual Artist’ that can style a shopper’s make-up without leaving their computer screen.
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.
As per the Capgemini survey report, in the coming three years 40% of the 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 of visiting a store or a branch (compared to 20% today)
Blockchain to rule the roost
Blockchain is a distributed ledger technology that brings bitcoin and other cryptocurrencies on a chronological and transparent platform and in a short span of time, it has convinced the world that it is going to be the present and the future.
As we move further, blockchain will become even more conventional. It will 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.
Talking about the retail industry, decentralized blockchain-based retail utilities will work as a mid-man and connect buyers and sellers. Thus, eradicating the middleman and associated fees.
Today, even though blockchain ledger has been made public, the data is tested and encrypted using advanced cryptography. Hence, it secures the data from getting hacked or changed without authorization. Likewise, blockchain technology will also enable the cloud storage to be 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.
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.
According to Gartner, by year-end 2020, the banking industries will originate $ 1 billion in business value from the use of blockchain-based cryptocurrencies.
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 – who are all set to take the risk and ready to embrace AI, Blockchain, Data Analytics and other cloud centred technologies so as to impact the masses.
Although there are chances of certain threats in regard to security but with the evolving trends- the changes will be rationalized, and the outcome will be remarkable. So, the acceleration in transformation that we were talking about initially, that’s quite much in an exponential progress mode and with that, business innovation seems to be a bright spot we’re aiming for.
What do you think will be the accelerators for business transformation bringing in innovation ultimately?
Share your views with us in the comments section below.