Evolution of Enterprise Digital Transformation in the Cross-Industries
Every industry has its requirement for Digital Transformation based on their business goals that primarily revolve around improving customer and organization’s experience. Digital Transformation covers all aspects of business, be it a digital business, a business in the transition stage, or a business that follows traditional processes. The acceleration of technology adoption and change lead to new business strategies, markets, technologies, processes, operations, data management techniques, better customer experiences, and innovative ways to tackle business challenges which ultimately lead to a new economy. For instance, Digital Transformation in the logistics industry can improve cost efficiency through collaborative logistics, which can save up to 15-20% on each order.
In the shipping & logistics industry, digitization is dramatically evolving. Modern technologies transform financial and organizational processes. New technologies allow the implementation of more effective and popular business models. The market is shaken up with entrants, be it startups, consumers or suppliers. When it comes to digitalization, technology can be both, a gift and a curse. Data from smartphones offer provides the carriers with incredibly valuable knowledge in their activities: from planning and the use of assets to billing and paying. On the other hand, data integration itself is a challenge to achieve a level of granularity in the supply chain.
In terms of the Automotive Industry, the difficulty lies in the fluctuation of the service component demand due to various phases of the product life cycle. This problem is further highlighted by demographics and lifecycles of clients. For example, changes in end-consumer preferences for accessories can result in demand fluctuations, some of which may be caused by commercial activities such as promotional events. The market for service components frequently appears to show a trend known as the lumpy market. When demand is strong, handling inventories is difficult, since OEMs have to deal with a seasonal pattern and a highly variable order size.
More consolidation can be expected as the aftermarket continues to mature. The pressure for consolidation between the different aftermarket players currently lies on the parts dealers who have to reach critical mass and economize on a scale. The digital aftermarket disruption is accelerating which is mainly powered by consumer trust in online services and new digital giant strategies. There are several business processes which suppliers believe are sufficiently necessary for digitalization like enhancing the supplier visibility to trends of consumer purchasing, purchases, promotions, and other marketing-related functions.
In terms of the retail industry, the digital revolution for retailers requires the creation of a linked relationship through substantial technical usage. It’s not only about customer centricity, creativity, ingenuity, technology analysis and innovative product ideas, but it’s also about rationalizing operations, reducing costs and increasing sales time efficiency. With the rules of the game shifting retailers need to reconsider everything – from sourcing and pricing strategies to product preparation, instruction for staff and even monitoring of consumer encounters.
Some of the driving factors of Digital Transformation
- Changing customer expectations
- Growing requirements for performance measurement
- Redefining collaboration
- Safety and flexibility of operations
- Adapting and improving existing multicarrier shipping solutions
- Clear Customer insights
- Operational Excellence
- Recommendations for responses and readiness
- Predictive maintenance
- Innovative digital services
- Online sales
- The changing perceptions of a remote or Omni-channel shopper
- The ability to merge digital and physical environments with in-store
- Supply chain issues like speed, time and a clear vision
- Rising expense pressure from new and existing consumer service leader
Present Digital Transformation trends:
A successful Digital Transformation initiative requires clearly defined strategic objectives which outline the efforts and ROI measurement. At Alvarium, we help companies go through a smooth transition and gain better Digital Transformation ROI. We integrate digital technologies into business processes and recommend data-driven business models for long-term business sustainability. To know more, visit email@example.com.