When a company transforms its core business processes to digitize them and in the process create a more efficient and profitable way of doing business it is termed as digital transformation of business. In the past decade, digital transformation has gained significance in every industry and businesses everywhere strive to keep up with digital transformation to do better in a dynamic business environment.
Digital transformation helps businesses revamp their business processes and begin by a complete re-thinking of the processes being followed. In doing so, businesses are able to point out the bottlenecks, loss of efficiencies and risks the business is subject to in the current process. Implementing new, digital processes helps businesses cut costs and make flexible processes that maybe scaled or tweaked as per changing customer demands.
Digital Transformation has affected different industries globally. In this blog post, we look at the top three industries effected by digital transformation, the challenges and benefits.
IMPACT OF DIGITAL TRANSFORMATION ON TELECOM
The telecom industry is one of the few industries which has gone through a fundamental change in the last two decades. One such massive transformation seen in the telecom industry has been a shift from on premise telecom platforms to cloud hosted telephony solutions.
Challenges for digital transformation in telecom:
One of the biggest challenges for digital transformation in the telecom industry is that voice communication demand is expected to decrease as the market for data grows. Industry experts believe that the market for voice communication has peaked and may fall in future.
Benefits/Opportunities for digital transformation in telecom:
The arrival of cloud computing to voice communications has made it possible for a single provider to supply voice and data communication solutions, thus streamlining communication technologies in business. This is deemed as one of the greatest opportunities in telecom.
IMPACT OF DIGITAL TRANSFORMATION IN MANUFACTURING
Manufacturing has by far been one of the industries to benefit the most out of digital transformation. Operational efficiencies are known to witness a dramatic rise when governed by digitally enabled processes. IoT and analytics based situational awareness has made a great difference for businesses in the manufacturing domain.
Challenges for digital transformation in manufacturing:
The increased use of data to streamline manufacturing processes has made it imperative for manufacturing businesses to build a robust IT infrastructure. A good IT infrastructure ensures seamless flow of data from manufacturers to suppliers in a secure and efficient network. Building a scalable network and IT infrastructure is an important challenge manufacturing companies face.
Benefits/Opportunities for digital transformation in manufacturing:
Technologies like IoT, big data analytics and SD-WAN are transforming the manufacturing industry into a digital model. If implemented with expertise a manufacturing unit can integrate designing, building, delivering and use of manufactured products to create a complete digital manufacturing unit.
IMPACT OF DIGITAL TRANSFORMATION IN BANKING
Banking is one of the industries that was first affected by the changing digital climate. Customers now demand faster, more efficient ways of transacting with banks rather than visiting the branch. Secure and fast online services maybe provided only by banks that can cope with the wave of digital transformation.
Challenges for digital transformation in Banking:
Changing state of economies and rising regulations continue to challenge the banking industry, On one hand, banks strive to complete ambitious digital transformation projects which may cater to the changing needs of customers while on the other, governments are insisting on stricter regulations and rules that can guarantee the safety of finances lying with the banks.
Benefits/Opportunities for digital transformation in Banking:
Trends like mobile banking, IoE (Internet of Everything), cloud computing and fintech offer endless opportunities to the banking industry to create newer products and better services for their customers.
With benefits like rapid access to information, big data analytics, seamless customer experiences and cloud technologies, digital transformation offers more opportunities than challenges in every industry. Be it banking, manufacturing, telecom or retail – businesses which innovate and adapt to the changing business environments are likely to succeed and ride high on the wave of digital transformation.
Aarav Solutions is an IT consulting and solutions company. Our expertise in cloud consulting services, telecom and IT solutions has helped numerous businesses develop and implement newer and better IT systems. Work with us to find the best IT solutions custom made for your business. We aim to transform and promote companies with our cloud computing based solutions to improve efficiency and effectiveness of their systems.