Concerning the volume of data circulating us, the 2020 World Economic Forum reported that at the time of its report two years ago, “the number of bytes in the digital universe was 40 times greater than the number of stars.” According to the same report, we witnessed the number of Internet users reach over 4.8 billion across the globe, with $1 million being spent each minute on online commodities.
Yes, there was another event that took place. The consultant firm Korn Ferry states: “If 2020 and 2024 were years of unplanned reinvention, 2024 is our opportunity to make intentional changes.” I am inclined towards agreeing with this view.
The current digital transformation
The world is being pushed into the stratosphere of digital transformation. The word”unprecedented” appears in nearly every news report, and the digital revolution is experiencing massive acceptance. While this isn’t necessarily a new phenomenon for all individuals, adjusting to the changing environment is the need.
Although digital transformation has been tossed around meeting rooms, boardroom tables, and even companies over the last decade, truthfully, this concept has been in use for quite a while. Since the 1940s, our society has constantly evolved by adjusting to technological advances.
But, up until now, most companies have viewed digital transformation as a means to distinguish themselves from competitors or gain an edge over competitors. Due to the spread of the virus and the rise of digital disruption, it’s no longer an option for companies. The world has gone digital, and there’s no way back. According to PwC research, “60% of executives say digital transformation is their most critical growth driver in 2024.”
The driving force behind Digital Transformation
Technology advancements and digital transformation aren’t just side effects but factors driving the market. In 2024, experts expect the investments into digital transformations to exceed $2.3 trillion. This is just the beginning.
Businesses are using technology to change how they run their businesses, open up new opportunities for market growth and meet the needs of society. Indeed, with the rapid technological advancements and the rise of digital technology, we can expect sectors that span agriculture, manufacturing, health, energy, and mobility to be part of this change. In addition, I envision technology playing an essential part in helping to solve global issues related to climate change and food security, as well as health inequalities and inequality.
The 21st century is here. All businesses ought to already be digitally-powered businesses. Therefore, we’re seeing more and more companies move towards this challenging concept. Knowing what is essential, however, is the key. It’s more than implementing a technology stack or adding buzzwords to presentations. It’s a clear plan of action with “scope and objectives.” It’s changing the business’s operations in the current analog world into one that can endure and thrive in a new world.
The Practices of Digital Transformation: The Financial Industry
According to Deloitte, 85 percent of CEOs who accelerated projects in digital during the outbreak are unable to communicate their overall strategy and the progress they have made.
Consider the model of marketplace and platform implemented by Uber or Amazon. These companies have put customers at the core of their business and have employed technology to improve the user experience. No matter what product or service is offered, each step should be simple, quick, and personalized.
Although companies like Amazon or Uber are well-known, prominent examples of this transformation and pivot to the digital age, we should also pay attention to more tiny well-known tales such as American Express. A seasoned veteran of transformation, American Express made the U.S. Chamber of Commerce’s list of the top 10 companies that have had notable success in re-inventing their business model and also introducing different revenue sources.
With the help of market trends, prioritizing process over the application, and replacing old technology with automated, American Express created a user-focused experience and a fresh approach to working. The result? New revenue streams, increased market growth, and increased retention of customers.
As I get older, I see this more and more in the fintech sector. Companies of the next generation are using technologies to connect with a larger market. From helping small-scale enterprises grow to providing financial services to those who aren’t banking, We already see the benefits of technology in finance. For the first time, financial services are available to all people regardless of income to assist them in saving, investing, and creating credit.
For example, Danske Bank provides an excellent illustration of the value derived from a digital-first environment. It was in 2013 that Danske Bank launched MobilePay, which was a peer-to-peer (P2P) application. The app was accessible to anyone for free and provided simple, user-friendly services. Additionally, it offered a simple, seamless payment system for business. The business customers benefited from this, and by using these technologies, banks created an additional revenue stream which currently stands around $23.1 million.
The Future State
I anticipate many other sectors and businesses to follow in the footsteps of digital transformation as it accelerates across all industries. From quantum computing and 5G and quantum computing to AI and blockchain technology, I can see how advances in this kind of technology will accelerate towards an overall positive effect on the way we live. Soon we will see jobs being created, new ways of working, and novel business strategies. Utilizing these technologies and technological advancements will help us take advantage of opportunities that aren’t yet realized.
In the post-pandemic era, success for a company depends on leaders who take a proactive approach to developments and integrate innovations into everyday processes and across the corporate culture. Also important is taking time to learn from the ones who have succeeded effectively and others who haven’t. The most often ignored aspect is to look for solutions that have proven capability to go beyond what is needed in the current market. The most crucial aspect is to put the client first and then move on to the next.
With each incremental step forward, we empower companies with the capabilities enhanced by technology, enabling an era of digital transformation focusing on creating an improved future for everyone. The potential and capacity of our company to influence positive social change have never been greater.
