magine it is the early 2000s. You’re a business owner who has recently learned about this thing called “The Internet”. You are not sure what it is, but
you know it’s something that you have to be aware of since you want to remain competitive in the market. So, you start and learn about all the benefits that come with using the internet, and in the end, you buy a website and begin to sell your services online.
Fast forward to today’s world, digital technology has completely revolutionized our lives in ways we could have never predicted back then. Now, we can purchase stuff from anywhere in the world, communicate with individuals who are miles away from us, and even work from the comfort of our house or a sunny beach in Italy. At times, it feels overwhelming, but this is digital transformation.
Nevertheless, digital transformation means more than just leveraging technology to make processes easier. It’s more radical than that, as it alters how we do things from the ground up. Through digital transformation, we can build new business models, consumer experiences, and products that bring new value to our customers. So what better way to adapt in today’s digital transformation world than getting educated on what the trends are that will shape every industry in the future?
Cloud computing has already changed the game for doing online business.
If you are not familiar with cloud computing, think of it as a giant virtual storage of hardware and software that can be accessed by anyone willing to pay a service fee to a cloud computing provider. Businesses can then put their data and applications on remote servers and access them from anywhere in the world. And it’s not just a simple storage closet, since it comes with a variety of tools and features that can streamline business operations.
Businesses that work with cloud computing providers can scale up and down their requirements for processing power, memory, and data when needed, not wasting any money on personal data centers and expensive hardware equipment. And they also gain access to high-security levels, automated backups, disaster recovery, to even virtualization and collaboration tools.
It gets even better! Enter the hybrid cloud. This is a supercharged form of cloud computing that combines the advantages of both public and private cloud services. It’s like having a double-edged sword in your arsenal. On the one hand, you have the flexibility and scalability of public cloud services, while on the other, you have the security and control of private cloud services. This way, your company can get the best of both worlds by tailoring its cloud solutions to its requirements.
Look at Netflix! The streaming service now operates in over 190 countries, so they require a cloud solution to manage large volumes of data while providing a seamless experience to millions of subscribers. So the most efficient way to do that was by employing a hybrid cloud system that blends Amazon Web Services (AWS) public cloud services with private cloud servers.
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The Internet of Things impacts an organization’s digital transformation processes like nothing else!
IoT is a network of all our gadgets and applications that have internet connectivity. Everything is linked, from our smartphones and computers to our smart refrigerators and thermostats. And by linking them all, they can exchange information and collaborate to make our lives easier and improve efficiency.
But what does that mean for businesses? Well, IoT is more than convenient. It’s a game-changer because it enables organizations to collect huge amounts of data in real time. This way, they can make educated business decisions based on collected and analyzed data. A manufacturing company, for example, can leverage the IoT to monitor equipment performance and discover any possible problems that might pop up. It’s a process that can save time, money, and resources.
And that’s what happened to John Deere. The manufacturing company decided to implement IoT technology to increase the productivity and efficiency of their farming equipment. The business has deployed a variety of smart sensors on its devices, and in this way, it can collect data on everything. From soil moisture and temperature to machine performance and fuel use. This is a game changer in terms of promoting further innovations.
You for sure saw this coming - but artificial intelligence is also present in digital transformation, and it’s one of the most popular trends.
It’s kind of incredible to think about how far AI has come. A few years ago, it was a great subject for SF films, but right now, we are beginning to live in those scenarios. And it’s amazing for businesses! With AI, we can automate day-to-day operations, analyze and evaluate data and forecast future events. This one is also a game-changer for organizations, allowing them to improve the way certain tasks are performed. Sorting big data from millions of customers is impossible unless you have thousands of people doing just that. And that is inefficient, costly, and, to be honest - boring for those involved. AI can automate a lot of this stuff and also provide companies’ leadership with useful insights about the crucial aspect of the business.
We’re going back to Netflix for this one. The streaming giant has ridden the AI trend for some years now, and it has become an integral part of the organization. It’s one of the best examples of digital transformation that we have! Using AI algorithms, Netflix can create tailored suggestions for its subscribers by analyzing their watch history. This way, customers find themselves happier with the curation, while Netflix can enjoy higher engagement and retention for their platform. It’s a win-win situation!
Going further, Edge computing is a state-of-the-art digital transformation trend that is altering our perceptions of computers and data processing.
Keep in mind - edge computing is different from cloud computing! In this case, data processing and analysis take place closer to the source of data rather than in a centralized cloud or data center. This enables faster and more efficient processing, which is essential in cases where speed is vital, such as driverless cars!
Think of it as a pit crew in a Formula One race. To maintain the car running at top performance, the pit crew must evaluate data in real time and jump to action. This type of real-time processing and analysis is made possible through edge computing. Just like the Formula One crew, a self-driving car usually has a Deep Neural Network that processes data on the go. In this way, a car can come up with the best solution to a given scenario.
But to give an example of edge computing in business - let’s look for a second at Walmart. The American corporation has been leveraging edge computing to improve its inventory management system and optimize its supply chain. One use case can be found in some of the Walmart stores that have implemented smart cameras to detect when shelves need to be restocked, or accidents occur - therefore allowing their personnel to respond immediately!
And since Cyber threats are a growing concern, security should be integrated into every digital transformation plan.
Think of your company as your house. You need to lock your front door. Without doing so, your home is susceptible to intruders. But for business, everything connected to the internet can become a door inviting hackers in. Every employee’s device, business terminal, or data center, you name it.
Think about how in 2019, Capital One, the banking giant, experienced a huge data breach, compromising the personal information of millions of customers. An unauthorized individual had gained access to a lot of Capital One customer information. But, thanks to the company’s excellent cybersecurity procedures and response strategy, the incident was rapidly extinguished, and the harm was minimized. It only took 1 day.
After all, cybersecurity is about more than protecting data - it’s also about protecting people.
Each of the trends we mentioned here represents a significant shift in the way we do business. And every company should be aware of them since they shape and change everything for us. Digital transformation is an exciting process to watch and experience from afar. But for our businesses to stay competitive among their peers and continue to bring value to customers, digital transformation and all its layers need to be understood.
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