AMR Future Brief| Digital Transformation: How Is It Leading Modern Businesses to Gain Competitive Advantages?

With the rapid technological advancements and ever-evolving consumer expectations, businesses are increasingly innovating and adapting to digital technologies. Digital transformation integrates digital technology into all business areas, fundamentally changing how organizations operate and deliver value to customers. This journey, however, is not just about adopting new technologies; it is about reshaping company culture, optimizing processes, and ultimately enhancing the customer experience. 

A brief on digital transformation 

Digital transformation encompasses a broad range of changes driven by digital technology. It is about leveraging innovations such as cloud computing, artificial intelligence, big data, the Internet of Thing, and blockchain to create new business models, improve operational efficiency, and deliver personalized customer experiences. Companies that successfully undergo this transformation achieve significant competitive advantages, including increased agility, enhanced decision-making capabilities, and improved customer satisfaction.  

A look into the trends driving the digital transformation industry 

In the past few years, global investments in digital transformation have increased significantly. According to ICD, the premier global market intelligence firm, the United States is expected to become the biggest spenders in this field, followed by Europe and China by 2025. The countries plan to invest widely in digital technologies transforming financial services encompassing banking, insurance, security, and investment.  

Furthermore, businesses are increasingly adopting IoT-connected devices to their functionalities. This significant growth in investing in these devices is mainly due to the lower costs of sensor technology which opens wide opportunities in the manufacturing industry. These devices help boost manufacturing facilities with enhanced visibility of shop floor and filed operations. Moreover, they also help optimize the supply chain and manage remote and outsourced operations. 

According to Accenture, an American multinational professional services company AI and machine learning is expected to revolutionize manufacturing by increasing its productivity by a staggering 40% by 2035. This rising concept of “smart factory”, with the incorporation of modern technologies is going to increase productivity levels across manufacturing businesses and empower staff to work smarter in the coming years.  

In addition, companies are also looking ahead to incorporate cloud-based solutions to boost their third-party applications and services, rather than upskilling current employees or hiring from a shrinking labor pool. The XaaS (Everything as a Service) approach promises financial efficiency, improved productivity, more robust cyber-security, greater agility, and flexibility. This technology enables companies to strengthen their in-house solutions.  

Some successful digital transformation stories of industry leaders 

Numerous organizations across various industries have successfully embarked on digital transformation journeys, gaining significant benefits. For instance, Amazon’s relentless focus on customer experience and continuous innovation has made it a leader in e-commerce and cloud computing. The e-commerce giant has integrated modern technologies such as AI, big data, and automation, revolutionizing its supply chain management, personalized recommendations, and customer service. 

Similarly, General Electric (GE) Company, an American multinational conglomerate has taken significant step for transforming its traditional manufacturing capabilities and becoming a digital industry leader. GE has optimized asset performance, reduced downtime, and improved operational efficiency by harnessing the power of IoT and predictive analytics.  

Additionally, Starbucks, an American multinational chain of coffeehouses and roastery reserves has embraced digital technologies to increase its offerings. The company’s digital strategy includes mobile ordering, personalized marketing, and a robust loyalty program. It has enhanced customer engagement and streamlined operations by aiding data analytics and mobile technology.  

EQT’s acquisition of WSO2 to capitalize on digital transformation and GenAI adoption 

In May 2024, EQT, a purpose-driven global investment organization acquired WSO2, a leading provider of application development and identity and access management software to enterprises. WSO2’s products and platforms empower organizations to leverage the full potential of Application Programming Interfaces (APIs) for secure delivery of digital services and applications, enabling thousands of enterprises in over 90 countries globally to drive their digital transformation journeys. With this acquisition, EQT aims to strengthen its position in long-term trends such as digital transformation and rising GenAI adoption. As businesses across the globe are rapidly adopting digital technologies, EQT plans to provide a comprehensive offering to them which includes Application Programming Interface Management, API Integration, and Identity and Access Management (IAM). With this agreement, the company plans to cater to the growing transition of global businesses to hybrid and multi-cloud workloads by accelerating the adoption of Generative AI. 

Huawei’s innovative launch of industrial digital and intelligent transformation solutions 

In February 2024, Huawei successfully hosted the Huawei Industrial Digital and Intelligent Transformation Summit during the MWC Barcelona 2024, This summit was organized under the theme of "Leading Digital and Intelligent Infrastructure, Accelerating Industrial Intelligence." At the summit, Huawei invited global customers, partners, and industry leaders to explore and share their innovations and practices in digital and intelligent transformation for industries and SMEs. Besides, the company officially launched ten industrial digital and intelligent transformation solutions, and a series of new flagship products, to meet the needs of customers at different stages of industrial transformation. Li Peng, Corporate Senior Vice President, President of ICT Sales & Service, Huawei, said that the company is planning to enter an intelligent world to offer more intelligent digital infrastructure products and solutions that accelerate the intelligent transformation of industries.  

The final word 

Digital transformation is not a one-time project but an ongoing journey that requires commitment, vision, and adaptability. With the rising complexities of data and changing consumer demands, businesses are increasingly integrating digital technologies to their all facets, reshaping their operations and enhancing consumer experiences. This is expected to make modern organizations gain long-term success in the digital age, delivering enhanced value to their customers.  

To gain more insights into the emerging trends in digital transformation, reach out to our industry experts today! For any further assistance, you can also directly chat with them here! 

✍ **𝑨𝒓𝒕𝒊𝒄𝒍𝒆 𝒘𝒓𝒊𝒕𝒆𝒓: Rosy Behera