Accelerating Digital Transformation in the High-Tech Industry

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The dynamic nature of the world compels high-tech companies to evolve around the digital revolution. Advancements in digitalization embrace many opportunities, and to flip trump cards, businesses need to empower themselves with capabilities.

Companies are fastening their seat belts, ditching the speed limit, and growing with innovation to drive business transformation and reach across the global customer base.

Confronting this transformation, high-tech companies need to be creative, disrupting, and adaptive for the flawless execution and integration of digital powers.

Digital adoption has taken a quantum leap in the high-tech sector to meet the frequently changing behavior of customers. High-tech organizations eagerly implement digital initiatives to streamline business functions and customer experience. Reaching out to 80% of customers interacting via digital channels is an uphill climb.

Primary Classification of high-tech industry:

- Consumer Electronics

- Semiconductor Technologies

- Software Companies

Get your skates on digitalization

Facilitating new technologies will impact the bottom line of any company – with improved business efficiencies, cost reductions, and increased profitability. Even the top line of business on growing market share and becoming a leader is uncertain if they didn't leverage the edges of digitalization.

Things are different now; pandemics force businesses to adopt new technologies and quickly reinvent their business models. Technology companies appear to be figuring out how to use new technologies to fuel growth and the top line during this rapid reinvention.

These companies' leaders believe in restructuring their businesses to acquire market share and consumer advocacy at the top. They plan to optimize the transformation to create back-fourth competition -- new insights, improved data protection, and increased energy efficiency.

Companies should be attentive while investing in the right technology that aligns the strategic intents of business scalability and customer-centricity - which means focusing on a connected enterprise.

Emerging technologies that are part of digital business transformation

High-tech companies are already on a mission to improve people's lives through meaningful innovation. Yet, multiple emerging technologies loaded with advancements unveil the capabilities to revamp the whole business system. Artificial Intelligence (AI) tops the list, followed by Internet of Things (IoT), Blockchain, Big Data, and Machine Learning (ML). Cloud computing and robotic automation are the rising stars of digital transformation services.

Artificial Intelligence is the mastermind behind delivering the personalized experience to end customers by analyzing their buying behaviors using the data available within CRM. For years, high-tech companies have been facing issues in customizing solutions. Now AI and ML empower them with accurate, predictable solutions by exploring, examining, and leveraging human behavior.

On the other hand, IoT enables data transfer to the cloud by triggering sensors integrated into devices, software, assets, and services. Further, the data creates personalized marketing campaigns to retain customer advocacy.

The disruptive power of blockchain compels high-tech companies to deploy their prospects as per their use cases. See how one of the used cases can make the difference - integrating blockchain with IOTs can ride the wave of magic across supply chain scenarios.

Cloud computing allows technology companies to enhance data security and efficiency to boot. The technology has emerged as a new paradigm that performs as a centralized system for integral and external IT infrastructure, bringing users and processes together on the same level.

According to the report by KPMG, a few challenges hindering digital adoption are taking place at an incredible pace among tech-based organizations.

  • Unskilled Personnel - Weightage 27%

The resistance to adopting new technologies and tools also creates a barrier to digital transformation. For successful implementation of change, technology entities need skilled, trained, and high-performing engineers. To tap into this challenge, tech companies should hire fresh talent with the required knowledge; be flexible by default to learn digital innovations, and be adaptive for quick implementation.

McKinsey's study shows that only 42 out of 100 IT employees will be fundamentally retrained.

  • Lack of capital/funding - Weightage 22%

Agility is the basis of many digital solutions, which means that the project's scope is constantly changing and incurring additional costs. Companies impacted by the pandemic find it hard to sustain growth. Indeed, it is an expensive affair for companies struggling with limited budgets.

To overcome these obstacles, businesses must develop a robust financial strategy before initiating the implementation process. They must also consider long-term advantages and ROI at the forefront.

  • Insufficient resources for new technologies - Weightage 21%

Some of the main problems associated with digital business transformation include poor resource management planning and a lack of IT resources.

As per Capgemini - 77 percent of businesses see a lack of digital skills as a significant roadblock to digital transformation.

  • Lack of Data Security - Weightage 18%

One of the measures to examine the success of digitalization goals is how your digital operations can secure essential data while transforming it into a new system.

Visionaries should build security protections for all applications and then implement end-to-end policy-driven security measures in various internal, public, and cloud contexts to address this problem.

Knowing the challenges will not get solved until you map out a successful plan for digital transformation.

Investing in ramson funds, upskilling and hiring talent, and establishing better infrastructure is not worth a temporary transformation.

Tech companies should measure each technology's acute potential before implementing it to make it meaningful and lasting until the next wave of the digital revolution.

Many businesses find it challenging to see through the flashy promises of new technologies. As a result, they devote far too much time and effort to the technological aspects of digital transformation projects. So, they plan out a tangible way to evolve products and processes before amalgamating new technology.

By interviewing the CXOs of top-notch tech companies — analysts discovered the concept of digitalization more as business transformation instead of technology transformation. We simultaneously witnessed one simple tool across the high-tech industry that necessitates the shift in all perspectives - Business Model Canvas.

Working on Business Model Canvas based on nine key elements helps create a new business model ready for a transformation. Since the late 2000s, the business model canvas has assisted enterprises in sketching out and transforming their business models.

The nine elements of the business canvas act as a checklist to ensure that none is overlooked while bringing all of the elements together to better understand how they interact. Components of business innovation models establish a cause-and-effect relationship, where changes in one aspect turn the whole canvas.

At the forefront of establishing an effective Business Model, a company needs to Outline the Existing Business Model, determining its existing capabilities of business functionalities to know where you want to know and how to get there through business transformation.

You must not just fill in the nine boxes in this process; you should also pay special attention to how they interact and impact each other. The primary stage of Business Model Canvas will uncover your current business model flaws.

Choosing the correct prospects to engage with the transformation opportunities in the previous step of the canvas model. You can use a ranking exercise to select the essential areas you want to focus on and gradually implement the necessary modifications.

Discovering the necessary modifications is the third step to ascertaining where you want to go and what you want to achieve digitally. Here, companies should necessitate alterations from the current transformation to digitalization. Training and upskilling are appropriate for selecting a job and comprehending the business implications for successful digitalization.

Setting the seal on the critical elements by observing and measuring the ongoing transformation process in a new business model. It is challenging to keep iterative efforts on track and prevent organizations from falling into a post-transformation effect that estimates rationality.

Once you initiate the change, you need to adopt the constant engaging approach to stay ahead in this competitive industry.

Business Model Canvas helps you enhance the sustainability of digital evolution and lets you focus on your top-line growth and impacts rather than just following digital trends.

Today's high-tech companies either have a hands-on or are waiting in the wings to accelerate the digital transformation. The dominance of digitalization creates an urgent urge in the tech sector to implement innovative, proven, and customizable solutions once the pandemic hits companies' sustainability.

Considering cybersecurity measures, high-tech companies should leverage the potential of digital innovation by adopting behavioral processes to manage and utilize big data.

Indeed, Information Technology is well-aware of the disruption and widespread effects of this transformation on its operations. However, most high-tech firms have yet to be converted to the value-adding profits of digital, preferring instead to wait and see.

For technology-based companies, digital transformation is like a bait that needs to hook into their existing business ecosystem to drive fundamental change and unlock the new potential of executives, clients, and stakeholders.

Author

Assim Gupta

Swetha GP linkedin-icon-squre

VP of Delivery

She is a VP of Delivery at Closeloop. A communicator, business analyst, and engineering aficionado. Besides handling client relations, and engineering duties, she loves to pour her thoughts on paper. She writes about engineering, technologies, frameworks, and everything related to the software domain. She reads, spends time with family, and enjoys a good walk in nature in her free time. Her dream destination is Greece.

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