Leverage big data to enable agility and transformation
Some see it as a threat to business, others see it as a huge business opportunity: digital disruption. But what does digital disruption mean?
It describes the digital developments in technology that impact existing products, services and business models. Be it agriculture, financial services or retail, the reshaping through digitalization is noticeable in each sector of the global economy. Consumers are already accustomed to digitalized videos, audios and text. And with social media, even their personal and professional relationships reach new digitalized dimensions.
With increasing computer power and connectivity in smart devices, each activity contributes input to an expansive collection of data. That data has become the new currency in the digital economy; a new currency that can enable companies to strengthen the core business and to find new ways of satisfying needs of customers, thus building a competitive advantage. But to drive innovation and business success, the flow of data has to be utilized correctly.
Considering the large amount of data that is available due to these technological developments, it seems to be easier than ever to understand customers. According to a top management consulting firm, 80% of all available data has been created in the last 18 months. So, not only collecting the large amount of data, but analyzing big data plays a significant role in digital disruption.
The competitive advantages that result from this digitalization trend are immense for both consumers and enterprises. There are countless touch points between customers and companies, and the customers take the reins by defining their preferred way of interaction and consumption. Customer experience can be improved by developing consumer-based apps, products and services that allow the customer to use self service to satisfy their demands in a way that’s faster, easier and more personalized than ever before.
By digitalizing business processes, firms can cut costs up to 90% and effectively improve turnaround times, according to a global management consulting firm. A great example of digitalizing is Amazon.com, which successfully digitalized the shopping experience for customers and changed the perception of e-commerce worldwide.
Digitalization opens new opportunities to make forecasts and key decisions based on big data. This transition to a data-driven approach allows access to knowledge, skills and innovation. It enables the markets to grow by providing more variety and more volume at a lower price; but, it will challenge companies to keep up with rapid technological evolutions that could leave latecomers behind.
Especially for telecom operators, it is crucial to follow these trends and tap the vast data stores they have amassed. Telecom operators are in a rapidly changing sector where the market supply needs to be adapted instantly to the ever-changing market needs; otherwise they will be history. Companies must be digital leaders and see big data as a hidden asset that is a threat only to those who ignore the trends and those who do not utilize the data generated by customers, companies and ecosystems.
A trend is only a threat if companies do not acknowledge the importance, power and opportunity of technological developments. Digitalization is only a threat if it is treated as a threat. Digitalization, and the transformation it brings, is a tremendous opportunity to develop, ease and improve business.