The digital business is now so ubiquitous that it is almost banal. We live in a digital world, and all companies must think about how to incorporate the digital into everything they do.
The rise of digital business has been accelerated by the convergence of several technologies, such as artificial intelligence (AI), the Internet of things (IoT), cloud computing, mobile applications, and social networks. All of these have combined to fundamentally change the way businesses operate. And while most companies will continue to operate mainly in the conventional brick-and-mortar world for some time, the growing digitalization of our lives means that companies must consider its implications sooner rather than later.
The digital business platform
All companies are now a digital business. If you want to survive and thrive, you must be a digital business. The key to this is the development of a platform for the business. It could be an e-commerce platform that allows direct sales to customers online. Or it could be a digital channel for partnering with distributors or agents. There could be a mobile application for customers to use. The important thing is that the company has a clear idea of what its platform is like. This will help them decide what needs to be done to support the transition to digital. It will also help the company identify partners to help them develop, operate, and maintain the digital platform.
Digitally integrated supply chains
Many companies have traditionally operated with a linear supply chain, in which elements such as procurement, manufacturing, and distribution are tightly controlled. Digital technology means that these supply chains can now be much more integrated. The supply chain can be digitized or broken down into discrete segments. Each segment could be managed by a different company or group of companies. And each segment could be identified and monitored by sensors. The ability to create digitally integrated supply chains can help companies in several ways. The most important is the ability to improve forecasting and inventory management. Data flowing through the supply chain allows for more accurate forecasts and for retailers to respond more quickly to changes in demand patterns.
Digital sales and service channels
Many companies have always offered sales and services through a physical service channel, such as a retail store or a call center. The rise of digital businesses means that they can also offer these services through digital channels, such as e-commerce and mobile applications. This can be as simple as allowing customers to book appointments for repair services through a mobile application. It could be the sale of products through e-commerce channels. Or it could mean offering help and support online 24 hours a day, 7 days a week, followed by the corresponding repair services. These digital channels are largely complementary to physical sales and service channels. But they have the potential to offer many advantages over their physical counterparts. Digital channels can operate anywhere in the world. They can be easily accessed from anywhere in the world, even outside of working hours. And they can be tailored to the needs of specific customer segments.
Machine learning and AI-driven processes
Business processes are nothing more than sequences of steps. They are often automated by computer systems using software to sequence the process steps. Machine learning is a form of AI that allows computer systems to learn. For example, an intelligent computer system tasked with managing service contracts could analyze past experiences and identify patterns in how customers use the services. It could then learn to sequence its own actions in the best way possible. This type of AI system can not only learn to automate existing processes. It can also be programmed to create new processes. This allows companies to harness machine learning as a source of innovation. They can use it to create new business processes that they could not have foreseen when they designed their original computer systems.
The Internet of Things
The Internet of things (IoT) is the growing interconnection of devices that collect useful data about their environment. These sensors can measure everything from weather conditions to the performance of machine parts in factories. They can even monitor customer behavior in stores. In the past, these devices were mainly limited to a single company or sector. But the rise of the Internet of things means that these devices are now connected to each other. This allows them to exchange data and thus create added value for their owners. The Internet of things is now common in several industries, such as transportation and logistics, retail, and energy. And it is about to become even more important as companies seek to create new digital services based on IoT data.
Conclusion
Digital business is not a fad. It is here to stay. More and more companies will be driven by digital platforms. They will be based on data, AI, and sensors to create new services, reduce costs, and attract customers in new ways. They will harness machine learning to create new business processes that were not previously possible. The digital transformation is now in full swing. All companies will be affected by it one way or another. And many will have no choice but to digitally transform if they want to survive and thrive in the future.
