We live in changing times, in which we are being transformed by the use of technology. The ability to connect products to the internet and share the information they process is forcing companies to question and rethink their business models, even putting short-term financial and economic results at stake to consider future sustainability.
We see everything connecting, but many people don’t know who makes this possible. An analogy is that the ERP (enterprise resource planning) system is the engine of the car. ERPs ensure that interactions are robust, secure, and that the information generated and stored is accurate. Their role will be essential when the driver/user uses the car’s dashboard and can extract and process the information they need, as the ERP will connect to other platforms, such as Big Data or the Internet of Things (which connect sensors, machines, and devices), to provide the required information.
The business revolution and its complexity make it essential for this engine to connect and interrelate with social media, IoT, Big Data, and AI. People are deciding to consume products and services differently. Examples include online music streaming through monthly subscriptions ( Spotify ), private transportation ( Uber ), rentals and tourism ( Airbnb ), the e-commerce phenomenon ( Amazon ), and the endless incorporation of the Internet of Things, which allows for the design of new products and services.
1. Collaboration or Social Media
It happens beyond organizations; it happens through people, since they are the ones who choose to share their experience publicly. Today, social media and digital collaboration have such enormous constructive and destructive potential in business that they should occupy a central place on the company’s technological agenda.
On the positive side, there’s the help and problem resolution that not only reaches the customer more quickly, but also integrates the entire network at the time of that knowledge, allowing the company to identify opportunities for improvement and talent within the company.
2. Internet of Things (IoT)
It is estimated that by 2020, there will be more than 50 billion connected devices and things, with a global population of 10 billion. Today, some companies manufacture cardiac prostheses, such as the famous pacemakers, with built-in internet, allowing patients to monitor their health online on their phones and know when their pacemaker needs maintenance. Even more impressive is the fact that doctors can find out about device problems or their patients’ health online. Another example is building security; companies that outsource security guards for buildings are offering virtual services by connecting cameras and online security assistants, reducing not only costs but also risks to staff.
3. Big Data (BI) and Analytics
The vast digital footprint left by social collaboration and IoT forces us to have structured data analysis platforms and strategies to be able to summarize and understand all this information. Interpreting this entire world of information seems nearly impossible, even with Big Data tools. This is why the fourth trend is emerging: Artificial Intelligence.
4. Artificial intelligence (AI)
It seems like something new, however, the term emerged in the 1950s. Today, the digital trail left by people and things allows AI technologies to have a large volume of contextual information that allows them to be truly predictive and intelligent. From chatbots that learn to respond and speak to humans without us realizing when this happens, to predictive systems with endless applications, and even 100% autonomous robots. AI will undoubtedly be the one that will profoundly transform the way we live, and it will do so much faster than we could have imagined 10 years ago.
In conclusion, Digital Transformation is how technology and people’s willingness to adopt it are revolutionizing consumption and production habits in society. Its main characteristic, and what makes it so challenging, is the speed with which it has transformed us. It will require a great capacity for adaptation from our companies and managers to stay on the wave or get caught in the surf.
