Few days ago, someone sent me an email and in the opening, they reminded that the financial industry is on the brink of disruption due to the digital wave… and all of a sudden, I was back where my work on transformation stopped with my last employer and I got totally engulfed with my own business development.
Earlier this year I was fortunate to work with bunch of amazing professionals and data scientists in exploring ideas on how this new wave of technology will change running of a business as we know it today. In today’s world even for the medium size concerns the spread of information is so huge that the conventional reporting techniques are becoming inadequate and for the first time in the history of business everyone has the access to huge amounts of industry data coupled with the ability to analyze it in cold objective manner using AI.
According to Forbes insights survey more than one-third of executives feel that they are being directly affected by competition from digital and data-savvy players in their markets. I started preparing a list of some of the disruptive technologies that are impacting us now or will soon become more prevalent and the list became a lot bigger than what I envisioned. In following paragraphs, I discuss some of the technologies, selected out of this long list. I am planning to continue to write about the rest in more detail in my articles.
1. Artificial Intelligence
Artificial Intelligence has become the centerpiece of business strategy. Companies are demonstrating a willingness to use AI and related tools like machine learning to automate processes, reduce administrative tasks, and collect and organize data.
During one of my TO sessions a colleague created a churn prediction model, using numerous different dimensions of data, which was able to provide results with an accuracy of 54%. This level of accuracy was three times higher as compared to any manual model we had previously seen. Not only the accuracy was significantly higher the system was able to complete it in less than an hour, with conventional tools and our current process it may have taken us few weeks of hard labor to produce same results.
The emergence of machine learning, smart data discovery capabilities, and the automation of analytics workflow is allowing experts to handle vast amounts of information. Smart data discovery capabilities in particular are driving huge advances in how we understand unstructured and dark data. Prescriptive analytics goes beyond knowing or providing recommended actions based on prior outcomes.
In today’s world putting vast amounts of information in order and to effectively understand it is vital to the success of any business.
2. Personal data value platforms
With development of e-commerce, companies are collecting immense amount of personal data. This data is proving not only to be an asset of great economic worth but is now business critical. However, a lack of consumer knowledge about exactly what it is used for and how much it is really worth could lead to a reluctance to share data.
Personal data value platforms are helping the businesses learn about the value of their data, driving a wave of new products and services aimed at helping consumers to take ownership of their personal information. To preserve and even increase the potential of personal data, businesses need to embrace the principles of corporate digital responsibility to turn these potential risks into opportunities for differentiation and growth. The introduction of legislation like GDPR is also contributing to this goal as organizations must comply with strict data protection rules.
3. As-a-service business model
The product-as-a-service business model (XAAS) is gaining popularity as businesses look to establish subscription-based product/service lines. Customers’ demand for resources has triggered innovation in the reuse and remanufacture of goods, reflecting a preference for access over ownership.
This model overall cut costs by simplifying IT infrastructure and reduce the need for initial capital investment.
4. Need for customization/branding
For businesses to remain competitive their ability to personalize or customize what they sell in a cost effective manner. It is increasingly becoming a key customer requirement from manufacturing to service businesses. This need is positively impact end to end supply chains, data flows and encourage flow of capital.
5. Voice controlled virtual assistants
Alexa and Google Home have increased industry’s confidence in conversational interfaces, familiarizing consumers with an easy and efficient way of interacting with technology. Amazon and Google have taken prime position between brand and customer, capitalizing on conversational convenience. Just imagine how the further adoption of this technology will enhance relationship between business and consumer.
6. Industry 4.0 and the factory of the future
The installation of smart sensors and business’s ability to apply AI for data analytics is driving industry’s progress to the future. The wider use of automated processes powered by AI, advanced robotics, and IoT connectivity will contribute to realizing the ambitions of Industry 4.0. Otherwise known as the Fourth Industrial Revolution, Industry 4.0 boldly commit to a more connected world in which machines carry out mundane tasks. Many companies, such as Amazon, have taken tangible steps to implement this in automated warehouses.
7. Blockchain comes of age
Blockchain technology is now becoming an area of strategic focus for businesses across a wide range of sectors to establish trust networks, improve transparency, efficiency and reduce costs. Despite controversial reputation, interest in cryptocurrencies powered by blockchain remains strong. More businesses are accepting cryptocurrency payments, starting of course with Bitcoin and Ethereum. As the interest grow so does the applications encompassing the innovative solutions for energy, trade, marketing, healthcare, security and more.
As the technology and new business models are transforming businesses as we know them, the lines are blurring between what were previously seen as distinctly different sectors. The convergence of industries is creating opportunities for organizations to evolve, offering new products and services to their customer bases. Automotive companies, for example, are investing in ride sharing apps as they look to reinvent themselves as mobility solutions, and banks are working with FinTechs to evolve alongside consumer needs.
9. Commercial drones and UAVs
Moving beyond the hobbyist and warfare applications, commercial drone use has begun to grow across a vast range of industrial sectors. Drones are a relatively cost-effective solution for surveying physical processes, whether they are happening on a construction site, in a field, or to aid security control in urban centers. No longer a novelty, drone application is set to balloon – provided that suitable regulations can be made.
2019 is surely going to be an exciting year for the businesses. We can be sure of exponential advancement and growth in both the disruptive technologies and that adoption rate.