The Tech Panda sought to find out the challenges of digital transformation, the sectors it is disrupting, the sectors it needs to disrupt, and challenges like staying relevant in a fast-digitising world and data privacy issues.
Digital transformation is part of the new industrial force, a strategy that looks to develop better business solutions using technology and software. While the benefits of digital transformation are many, the implementation itself is often held back by stakeholders and big players who are risk averse.
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There’s a tremendous amount of uncertainty when it comes to implementing digital transformation solutions – not only on a technical level but also structural
“There’s a tremendous amount of uncertainty when it comes to implementing digital transformation solutions – not only on a technical level but also structural. Questions of data loss and privacy are a critical part of these conversations, but the main roadblock is the cultural and mindset changes required to make a successful digital transformation,” he says.
“A lot of traditional enterprises prefer to keep software and tech infrastructure on-premise, because it makes for a more solid base of implementation. Cloud technology and artificial intelligence are hugely regulated fields so hedging all bets on a digital transformation can also seem risky,” he explains.
However, digital transformation is the future and its successful implementation of it is key to business success. Industries such as R&D, procurement, production, and logistics are undergoing the most transformation, while sales and services are the segments with the greatest potential to benefit.
The Front Runners in Digital Transformation
Digital transformation is evident in everyday life considering that it has made our lives much easier and more convenient. While digitisation is occurring all across industries, the most evident changes have been in certain industries.
Paperless transactions and instant money transfers can only be credited to innovations such as net banking and unified payment channels. Furthermore, financial institutions are also adopting blockchain and biometrics to improve the security and stability of financial infrastructure.
“There’s massive growth potential in this industry,” says Goel.
Already, India has set an example with its super digital finance sector. According to TOI, 40% of the revenues earned by IT companies like TCS and Cognizant is from BFSI.
The pandemic was a trigger switch for a lot of technological developments, especially in the medical sector. Virtual appointments, digital pharmacies, online health records – the entire health industry is switching to digital.
Asian countries like Japan have begun digitisation measures to connect all patient records to an online individual ID system to facilitate wider use of clinical data in its digital healthcare system.
“India has the cheapest Internet access in the world, and with everything digital, it’ll help make healthcare more accessible,” he says.
We’re already seeing digitisation in major hotels and resorts – they have automated kiosks and biometric access. Not only that, data pertaining to customer behaviour is used to create more personalised experiences – so the digital transformation is definitely evident in this industry.
For instance, Webjet, an Australian global digital travel business operating in both consumer and wholesale markets, has been raising their dependence on blockchain technology to locate and remove real-time data problems, offer lower fares, and streamline communication between vendor and user.
Sectors that Must Tech Up
The sectors that must follow in terms of digital transformation are as follows:
Digital transformation can facilitate a greater degree of client service on the part of brokers without stretching themselves too thin.
“Tools such as automated premium payments, artificial intelligence-enabled chatbots and digital claims processing can save effort and time for people associated with the industry – thereby freeing time for more strategic tasks,” advises Goel.
Implementing cutting-edge technologies including robotics and AI tools in manufacturing can bring greater efficiency to people and processes. Using production data and information can help fine-tune business structures and cut costs.
AI and ML tools can help with data collection and fundraising. Digital transformation can also lead to better program delivery within communities and expanded outreach into digital-friendly target groups such as teenagers. Services such as one-stop tax payment and donation invoicing dashboards can help with compliance.
Staying Relevant in an Era of Digital Startups
Digital startups are here to stay. Digital transformation is the next natural step when it comes to evolving business needs.
“Everything in an organisation is interconnected. Enterprises can still offer a physical-first experience without fully going digital,” says Goel.
Digital transformation presents a lot of growth opportunities, so it’s important to be clear about business strategy and goals before implementing hybrid strategies.
“Leaders across functions can speak thematically about shared needs, avoid redundant investments, address emerging risks, and change processes at scale by simply communicating better.
Everything in an organisation is interconnected. Enterprises can still offer a physical-first experience without fully going digital
Enterprises should also have a plan beyond a single technology. For greater value and bigger capabilities, digital and physical technologies should work together securely. Today’s breakthrough technology is tomorrow’s legacy tech. Data provides the fuel to power better and faster decisions,” he adds.
In this context, cloud testing is an example of the next big thing in digital transformation. It offers optimal performance, speed, availability, scalability and security of data. Moreover, organisations can reduce downtime of the associated platform or infrastructure.
“For companies testing other applications, using cloud computing tools instead of on-premises QA tools can help cut testing costs and improve collaboration efforts between QA teams across the geographies in the hybrid work environment. Companies get access to pay-per-use pricing, flexibility, and reduced time to market,” he explains.
Data Privacy with Full Digitisation?
Data privacy is a big topic today. And with digital transformation comes tons of data that must be secured and managed. But is it even possible to have privacy with full digitisation?
Technological innovation and progress are the need of the hour, but we are struggling to find a balance between the right to privacy and the extensive need for data on which the digital economy operates
Travel, healthcare, or education, digital transformation is the foremost need for businesses on account of consumer demand. However, any industry with the need for identification, data vulnerabilities are a challenge.
“Technological innovation and progress are the need of the hour, but we are struggling to find a balance between the right to privacy and the extensive need for data on which the digital economy operates. With new technologies and users being more aware, leading companies are now putting a major focus on data privacy and working in the direction of data privacy,” Goel concludes.