Are you focused on driving innovation around your products and services, systems of engagement or operational systems? We’re seeing too much internal, line-of-business, optimization-focused digital transformation, in which the chief goal is to position data and insight to drive optimized operations. Though this does enable business systems to deliver greater levels of autonomy and operational efficiency, it’s only part of the story. The most compelling promise of digital transformation is to compete more effectively, accelerate innovation and delight your customers through a richer customer experience fulfilled by optimized operations that are rich in data-driven insights. According to Forbes, the number of companies competing primarily on the basis of customer experience has jumped from 36% to 89% in the past nine years.
Millennials are the first wave of digital-native professionals and consumers, and they bring distinct expectations. For them, the line between the digital world and the physical world is increasingly blurred. They expect instant gratification and immediate insight, and they embrace multitasking and executing at high speed, enabled by platforms. These evolving expectations are fundamentally changing business models.
The rise of the platform economy
Today’s nimble digital disruptors focus on the digital experience, enabled by data-rich systems of fulfillment. They offer extensible, customizable platforms, where consumers can create their own capabilities and customize their own experiences. Their businesses are built on the cornerstones of membership and at-scale operations.
Digital innovators focus not only on using data internally to make business decisions, but on applying that information to energize the products and services they are delivering, so customers can consume them in new ways. A recent World Economic Forum study forecast that 30% of industry revenues will come from new business models by 2020.
No industry is immune – including transportation, manufacturing, insurance and pharma. They will all experience fundamental shifts as digital business models outperform traditional operations on every level. And forward-thinking businesses are taking the cue to fundamentally change the way they identify, develop and launch new business ventures. In fact, automaker BMW is already getting a jump on this trend by extended its business to offer a car-sharing and ride-hailing service, integrating voice and augmented reality (AR) into the car, and extending its customers’ experience with data-driven services.
Partnering for transformation
Wherever you are on your digital transformation journey, you need an end-to-end team of digital transformation professionals to help you make the most of these opportunities. At Hitachi, we’re relentlessly focused on helping our clients successfully execute their digital transformation initiatives. Our partner ecosystem is a fundamental part of delivering that success.
For example, Hitachi and Google are working together to drive innovation. We combine Google’s leading data analytics, voice, AR, artificial intelligence (AI) and machine-learning capabilities on Google Cloud Platform with Hitachi’s groundbreaking work in operational technology (OT) and IoT to solve business challenges and accelerate digital transformation.
You can catch our speaking sessions at Google Next ‘19, including presentations by Ellen Dowd, SVP, Global Solutions, Digital Transformation and Industrial IoT at Hitachi, who will speak about “Building Blocks for the Digital and IoT Ecosystem in Manufacturing,” and Andy Lamont, Director, Consulting Services, and Mubine Din, Senior Manager, Consulting Services, who will speak about “Using AI to Transform Your Fleet Operations.” Join us to learn more about how we are collaborating with Google Cloud to drive digital transformation.
It’s time to make your move
Any organization that’s not embracing digital transformation will soon find itself out of business. As you consider what your business will look like in ten or twenty years, consider the impact of digital technology on your organization’s business side, supply side and consumption side. Hitachi, together with our broad partner ecosystem, can help you unleash the benefits you need today and set you on the path to growth in the future.