This vendor-written piece has been edited by Executive Networks Media to eliminate product promotion, but readers should note it will likely favour the submitter's approach.
Tom Bianculli, CTO of Zebra Technologies
Silicon Valley -- not Detroit -- will be the king of the road in 2030. Smart sewers will improve public health metrics. Agriculture is like baseball. These were just some of the statements and predictions made recently at The Economist's Innovation Summit, where Fortune 500 CEOs, policymakers and entrepreneurs gathered to explore the opportunities and challenges in managing digital disruption.
As digital transformation is sweeping across the world, APAC is proving to be a crucial player in the game. This is supported by the Committee of the Future Economy in Singapore who highlighted that the digital economy in ASEAN alone has the potential to grow to US$200 billion by 2025. In view of this, APAC enterprises are prioritising digital transformation, as predicted by IDC, which reported that by 2017, 60 percent of APAC top 1000 enterprises will place digital transformation at the centre of their corporate strategy. IDC also foresees nearly one-third of all connected devices worldwide to be located in APAC, by 2020.
The central question therefore, is how enterprises can drive innovation in today's digital age. Well, the truth is that as Vijay Vaitheeswaran, the China business editor of The Economist noted, "Innovation" is one of the most overused words. What does it mean? Simply put, innovation in the 21st century is having the ability to see and deliver value to your stakeholders and do that ever closer to the point of demand. The "ability to see" is key, because today we have the technology capabilities to sense data from any device, analyse it to provide actionable insights and act on it in real-time. We have the ability to identify the gap between what we think is happening and what is truly happening and then take necessary action. And, as venture capitalist J.B. Pritzer said, "If you are not [acting like a technology company], you're dying or you're dead."
Will you get it right all the time? Probably not. But there is a lot we can learn from our collective failures - probably more than what we can learn from our successes. And what is your greatest asset? People. The majority of executives agreed that the workforce, not technology is crucial in effectively managing digital disruption in the workplace. This was one of the five most common digital transformation myths demystified. Specifically:
- Myth #1: Technology is the key factor in managing digital transformation. False. It is the people. Technology is integral in facilitating the process, but the success or failure lies with the workforce. And yes, I am a CTO. I do believe technology is instrumental in transforming the workforce in the digital era. By augmenting the workforce with data driven intelligence companies can release human capital and redirect resources to value-added jobs, while reducing errors, improving productivity and increasing job satisfaction. Not to mention that technology itself can be used to retain the workforce in engaging new ways. When all is said and done people make it happen, they embrace the change and adapt new ways of working and collaborating.
- Myth #2: Customer expectations differ based on the product or service. Nope. Using Uber sets your expectations as a shopper, as a patient, as a citizen. So the high expectations set by the best-of-breed providers in one industry set the norm across all industries. To meet these expectations, brands will double down on creating lasting, immersive experiences for their customers. In line with this trend, a recent study released by Zebra Technologies, revealed that nearly 76 percent of retailers in APAC will be able to customise the store visit for customers by 2021, as a majority of them will know when a specific customer is in the store. 65 percent of these retailers are also looking at machine learning and cognitive computing to help personalize customer experiences, and enhance inventory demand, forecasting, and visibility. This will set the foundation for the retailers as well as financial services, healthcare and other industries.
- Myth #3: Creative breakthroughs result from in-depth, industry-specific analysis. That's partially true. Executives can find commonalties and inspiration across industry sectors. Before recreating the wheel, executives should review best-in-class examples and benchmarks regardless of sector. "Agriculture is like baseball. It is rich in data. The challenge is how to turn it into insight," said Hugh Grant, CEO, Monsanto. And that's just one common challenge across different sectors.
Zebra provides real-time visibility to an organisation's assets, people and transactions. For example, as the Official On-Field Player Tracking Provider of the NFL, Zebra enables leagues and teams to gain real-time insight into the action happening on the field. The sensors track how fast players are running, the distance they travel and their acceleration and deceleration, among other things. Imagine what possibilities the industrial operations director of a warehouse can uncover if he or she starts thinking how to apply this real-time operational visibility in the warehouse.
- Myth #4: Businesses should focus on overhauls. Actually, even one percent improvement in the supply chain can create huge cost savings and generate green opportunities. For example, today, thirty percent of trailer cargo is air. Yes, air. Eliminating inefficiencies in trailer loading density and synchronizing the digital supply chain can significantly impact the bottom line and the environment. Using data collected right at the dock door together with mobile devices and trailer load analytics software, warehouses and dock managers are now receiving a real-time view of each trailer to ensure their cargo loads reach their full potential.
- Myth #5: You are in it alone. Absolutely not. Not as a company going through a digital transformation, not as a vendor consulting companies on their transformation journeys, not as an executive making investment decisions. And it shouldn't feel this way. Methods, processes and strategic engagements that embrace open innovation and B2B collaboration is the new competitive advantage. As one of the Economist panelists stated, "The 21st century is a really bad time to be a control freak." It's not about controlling information and secrets; it is about sharing data and leveraging the combined intelligence of partners and customers.
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