For people, modern IT services and technologies have become a familiar tool that helps in everyday life. Using cloud storage or tracking performance from a fitness bracelet. Some innovative companies such as Bizzo Casino already use AI technology to ensure you an incredible gambling experience.
However, the digitalization of enterprises and businesses is still in its infancy. Even those companies that have already begun to master new technologies mainly use only basic tools. Like instant messengers and office applications in the cloud.
Many new ideas, architectures and models appear on the market every year. Some of them naturally go into oblivion due to lack of demand. But there are dozens of mature technologies that are ready for real-life business applications right now.
Advanced Cloud Computing
These are platforms that provide a single package of services for a specific business area.
The main advantage is that there is no need to use several separate services. It complicates the organization of interaction between them.
Virtual Reality (VR), Augmented Reality (AR) and Digital Twins (DT)
Having digitized a real industrial object or process, the created model can be used to predict the results of a particular action. Usage scenarios:
- Carrying out a virtual crash test of the car;
- checking the seismic stability of the building at the design stage;
- simulation of changes in traffic jams in the city, depending on the mode of operation of traffic lights.
Using AR, you can superimpose a visual interface on a digital model of an object. For example, for factory maintenance work. By superimposing the model on a real object, the specialist will see information relevant to his task:
- cable connection diagrams;
- codes for locks;
- sequence of operation of mechanisms;
- hints from employees who worked at the same place before.
Artificial Intelligence (AI), Process Robotization (RPA), Internet of Things (IoT)
Technology automates routine tasks, excluding humans from their performance. This not only results in savings due to the reduction in the required number of employees, but also eliminates the risk of errors during work.
In addition, process chain management is simplified. All indicators are displayed in real time in a single system. It allows you to quickly make the right decisions.
Big Data, Data Mining, Machine Learning
Data collection improves the quality of analysis of customer and market data. Businesses receive more detailed information. This includes information about trends and changes in demand and customer behavior.
Blockchain and Smart Contracts
Blockchain technologies contribute to automation. They increase the transparency and security of the company’s activities. It simplifies supply chain management. It reduces the risk of partner fraud, and makes it easy to track products and materials.
Blockchain and smart contracts can also be used to:
- asset management — real estate, transport, equipment;
- identification and management of personal data. Digital twins, increased security, simplification of authorization processes;
- monetization of data. A business gets the opportunity to earn on their data by selling them to other companies.
The main features of the blockchain are the openness and publicity of data. But also the impossibility of forging them.
Why Business Digitalization
Five main areas to note.
- Increasing business efficiency and productivity. Routine processes are automated. Communications and management are improved. The accuracy and speed of decision-making are increased.
- Improved customer experience. Data on customer behavior and preferences enables the creation of more personalized products and services. This improves customer satisfaction.
- Increasing competitiveness. Digital technologies make business more efficient, flexible and fast.
- Emergence of new opportunities. Businesses get the tools to create new products and services. And experiment with business models, and expand into new markets.
- Transition to a digital economy. Artificial intelligence, big data, the Internet of things and blockchain enable the creation of business models aimed at generating income.
Together, these benefits increase the readiness of the business to market changes. This makes it more stable and increases profitability.
Difficulties of Implementation
The introduction of digital technologies in business is complicated by a number of factors.
Personnel Shortage
Specialists with knowledge and experience in the field of new technologies are crucial. Otherwise, digitalization is impossible without. In the labor market, such personnel are in short supply. Existing employees in the company may not have the necessary training.
Unpreparedness of Management, Employees, Customers
In many companies, digitalization is complicated by the unwillingness of management to change. This process involves the restructuring of many or all business processes and enterprise culture. That can cause fear and reluctance to use new technologies. Employees who see digitalization as a risk of losing their jobs or the need to master skills that were not required before can also resist change.
Data Protection
Digitization can increase the amount of data a company processes. This may pose a threat to their privacy and security. Employees and customers may have concerns about the lack of sufficient data protection.
Technical Limitations
New technologies may not be compatible with systems and applications already in use in the enterprise. Also, the implementation can be complicated. For example, the availability of the network infrastructure. Or the speed of the Internet connection, or the standards adopted by the company, and others.
Implementation Cost
Digitalization is associated with significant costs for the purchase and implementation of technologies. But also staff training, and restructuring of business processes. For many companies, this may be financially unaffordable. Especially for small and medium enterprises.
Lack of Flexibility
A company may not be digitally ready due to a lack of agility and an innovative culture. For such an enterprise, adapting to change can be too much of a challenge.
The priorities of the company may not meet the requirements of the market and the needs of customers. In this case, there will be no understanding of how new technologies will help in business and achieve specific goals.
Also, the lack of readiness for implementation can be caused by a focus on reliability and stability. Some companies are afraid to take risks, and therefore are not ready to master new tools.
Legal Restrictions
Depending on the region and industry in which the company operates, there may be legal restrictions. An enterprise may need to comply with a number of rules and legal requirements that complicate digitalization. For example, regarding personal data, information security, the use of cryptocurrencies.
In some sectors, such as healthcare, finance, energy, there are industry norms and standards that must be observed. It can also complicate business digitalization.
Certain activities and the use of certain technologies may require permits and certificates from governments. For example, licenses to use software or perform specific types of work.
The Big Change Is Not For Now, But Soon…
The use of new digital technologies requires companies to take an integrated approach to development. Technological skills, innovation culture, strategies and business models need to be improved. And also to have a priority on meeting the needs of customers and developing partnerships.
Companies that make the digital transition ahead of their competitors will be in a better position. They will be able to release new products. They will better track customer needs and optimize workflows. Ultimately, this will provide businesses with sustainable development over enterprises that have not been able to make the change.