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15/01/2020

Digitalization is not only helping to improve the economy, but also to expand it. Within this new disruptive context, companies must become masters of new technology in order to stay ahead of the game and maximize their performance.

In a few short decades, digital transformation has affected almost every aspect of our lives. It has simplified communication, enhanced entertainment, improved user experience, increased security… the list goes on.

Perhaps most notably, technological advances and innovation have had a considerable effect on our economy, changing the face of manufacturing, production, the supply chain, and more. Here’s how.

Manufacturing

Usually, manufacturing and production change at the whim of consumer demand. Consumers are always looking for something better, faster, and newer. However, in recent years, changes in the sector have largely come about due to significant advances in technology. We’re talking robotics and automation, computerized maintenance management systems (CMMS), big data—what’s collectively known as the Internet of Things.

How digital transformation is revolutionizing economics

Thanks to the implementation of CMMS software, the industry has become a lot more efficient. Effectively, a CMMS simplifies maintenance management. This has a ton of benefits. It decreases time technicians need to spend on paperwork, manages and curates reports on a manufacturing plants’ inventory, lets managers know when to schedule maintenance, and much more.

All of this helps to reduce downtime, diminish repair costs, mitigate risks and accidents, optimize storage space, and streamline purchasing procedures. So not only does this enhance overall organization, it also saves managers a lot of stress, increases revenue, and drives businesses’ towards greater success. What’s not to like?

Smart products

Consumers now want products that are connected, responsive, and well, a lot smarter than they are. The development of smart products means we can track our exercise habits and how much we eat, find out the answer to almost anything on the internet within seconds, and even put the kettle on before we open our front doors.

These game-changing products come with an endless list of advantages, from maximizing home security and conserving energy to saving costs and helping us lead happier and healthier lifestyles. In general, they offer the consumer a lot more interaction and control, and can be tailored to everyone’s individual needs and preferences.

How digital transformation is revolutionizing economics

According to a 2018 report from GfK, a data and analytics market research organization, 27% of US consumers have more than three smart home devices. This number will continue to soar in the future as these cutting-edge products become more affordable and accessible.

Bigger, better, and smarter inventions are constantly being developed, making our lives a lot safer and easier. Who knows what’s next? Maybe ask Alexa.

The supply chain

Supply chain automation is transforming the relationship between consumers and companies at record speed. Radio Frequency Identification (RFID), used to identify and track products, is already widely adopted and helping to make the supply chain of countless companies more efficient.

How digital transformation is revolutionizing economics

Marks & Spencer, a retailer based in the United Kingdom, was one of the earliest organizations to adopt RFID technology. The multinational organization uses RFID tags to ensure prompt and accurate deliveries of food, clothing, and flowers. A recent report into the effect of the technology revealed that it can boost retail sales by up to 5.5%, giving companies a competitive advantage in a relentlessly fluctuating market.

By monitoring the supply chain, the whole product to buyer process is a lot quicker, cheaper, and more straightforward, improving customer service and the overall consumer experience.

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The cloud

In simple terms, cloud computing is “computing based on the internet”—applications that can be accessed on the internet and not just physical devices. Data is stored in a metaphorical cloud and can be examined absolutely anywhere.No wonder businesses of all shapes and sizes are tapping into the modern cloud to help revolutionize their operational processes.

This frees up the memory and computing power of individual computers, and also saves money on the purchasing and maintenance of computers and other equipment. Additionally, it gives staff the freedom to work away from the office and avoids data loss due to computer malfunctions. Even if you damage your laptop, all your work is easily retrievable from the cloud.

Undoubtedly, one of the biggest threats to security in this digital age is cybercrime. It can have an irreversible effect on a company’s revenue and customer loyalty, so security really is a huge priority. Cloud computing allows companies to add more security measures than they could usually have on a normal computer, improving data protection and restricting access to sensitive information stored in the cloud.

How digital transformation is revolutionizing economics

The world of work

Advancements in technology are also drastically changing the world of work. According to McKinsey, the jobs of up to 50 million people in the US could be transformed by 2020. About 50% of all paid activities have the potential to be automated using existing technology which puts a lot of jobs at risk.

However, the key here is to adapt and adopt. Today’s workers should be educated and trained to embrace and work with new technologies, learning new skills such as web engineering, coding, and the ins and outs of data protection.

As well as this, new technology can actually help with sourcing talent and helping to put people in the right jobs. Artificial intelligence is already widely used to speed up recruitment and reduce inherent human bias throughout the process. So it’s not all bad.

The bottom line

Clearly, digitalization is not only helping to improve the economy, but also to expand it. It pushes companies to constantly develop products and offers them new, easier, and more cost effective ways to do this. Within this new disruptive context, companies must become masters of new technology in order to stay ahead of the game and maximize their performance.