The application of digital technologies is growing rapidly. This trend of digital transformation is changing our entire society. It offers new opportunities for innovative and creative ways of working that will eventually replace traditional ways of working. How is this digital transformation going so far, what opportunities does it present for business and what threats (or rather challenges) are there for organizations?
Web 3.0
The digital evolution began around the 1980s with CDs, e-mails and personal computers. With the rise of large technology companies like Google, Amazon, Facebook and Apple, the use of digital capabilities increased in the 1990s and early 21st century. And now we have entered the Web 3.0 era. Internet applications are more interconnected, can merge or can be integrated. Think smart homes and smart cars, augmented reality and crowd funding.
The odds
Digital transformation presents enormous opportunities for businesses. By deploying the right applications and having them communicate with each other, processes become more efficient, more valuable information is gathered for decision-making purposes, and it becomes possible to improve business and gain a competitive advantage. For example, digital transformation is enabling many companies to go completely paperless in departments. This saves costs, prevents errors and makes many daily tasks easier. And think also of the gathering of telematics data; remote "objects" can be monitored and this data can be anticipated by performing preventive maintenance, for example.
The challenges
But these technological advances also present a number of challenges for organizations. Challenges that, if not properly addressed, can prove disastrous. Security is a major challenge. In many cases, application security and the protection of (personal) data is an underexposed aspect in digital evolution. But even large organizations like Yahoo and Equifax have seen data breaches with disastrous consequences. Another key challenge is creating employee support for adopting new applications. People must see the added value of a new idea or new way of working. Only then will people be willing to move away from the traditional way of working.
Whatever industry you're in, digital transformation is affecting your business. If you handle this properly, you can benefit tremendously. That means applying the right ideas, technologies and products to your business model with proper attention to risk.
Philip van Kemenade is a marketer at Dysel and has daily contact with end users of software.
