Three Digital Transformation and Innovation Challenges Businesses Will Face in 2020
Thursday, 30 January 2020
Nowadays, businesses are incorporating new technology to improve their production or service. However, it seems as though many companies want to implement the latest digital trends for the sake of having them, rather than needing them. At EIT Digital we believe there is a path for every business to ‘go digital’ in a relevant and efficient way that will increase their revenue and the scope of their services. In this article we hope to shed some light onto three challenges businesses might encounter when digitalising their processes.
Challenge #1: Find Where a Digital Transformation Project is Needed
The first step towards digital transformation and innovation is identifying where the business needs to improve and which is the best specific technological solution. According to the Digital Transformation Scoreboard 2018 by the European Commission, every sector has opportunities to effectively incorporate digital solutions.
At EIT Digital we know that, in order to do this, companies should step back and look at the bigger picture; only then will they see the potential offered by digital tools, after all, a specific solution is only a small part of a greater service, not a goal in itself. Take the example of the smart urban furniture in many Swedish towns, where bins are digitalised to save time and become more environmentally friendly, while becoming a gateway for a wider cleaning service in the future.
Challenge #2: Using Technology to Push the Boundaries
We know technology solutions work as expected, but they are not the final goal; companies should strive to incorporate their new digital tools in a way that is relevant, and continue changing their structure to widen the reach of their services. If we take the example of the smart urban furniture once more, since they are a connected system, the bins could be used to go a step further and offer Wi-Fi or tourist information, as well as their intended function.
Implementing digital transformation projects requires a change of perspective: companies need to look at the role of new technology in the overall business context. For instance, look at the digital transformation undergone by financial services; in 2018, Eurostat identified online banking as a rising trend, used by 51% of adult Europeans, this was achieved with a combination of technology and restructuring that made an existing service easier.
Challenge #3: Focus on Offering Services, Not Products
At EIT Digital we believe the way forward for businesses is to offer services, rather than products. This means the customer will enjoy a more personalised experience, tailored to their needs while maximising efficiency. The example of the music industry illustrates this well, since the sector was revolutionised by digital transformation: it began as a physical product, selling records, cassettes, CDs, etc. However, the demand changed and what they offer today is almost 100% digital. This evolution is what will ensure the development of your company if you introduce technology the right way, and that is what we are here for.
At EIT Digital we want to help you overcome these challenges and show you how to implement digital transformation projects in your business. Sign up for our free online MOOC through Coursera, and learn how to restructure and expand your company. If you do not want to stop there, register to our on-site masterclass, organised and created in collaboration with the KTH Executive School. Make the most of digital transformation!