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How traditional businesses are harnessing tech for success.
How traditional businesses are harnessing tech for success.

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In a world that is increasingly defined by rapid technological advancements, traditional businesses are breaking free from their conventional mold to stay relevant and competitive. With a renewed focus on efficiency, safety, quality, agility, productivity, and flexibility, these stalwart enterprises are harnessing the power of technology to transform themselves for the better. The good news is that digitalization is available to any player that wants to stay on top of the game. From integrating AI for predictive maintenance to understanding consumer behavior, traditional businesses are undergoing a significant transformation.

 

 

For instance, brownfield digitalization is helping traditional businesses and industry veterans turn into industry leaders. By simply retrofitting legacy equipment or software systems with advanced plug-and-play applications, it is now possible for traditional businesses, including small and medium enterprises to digitalize their businesses affordably. The ease of digitalization has also led to a welcoming trend of small and medium companies reinventing themselves with powerful plug-and-play technologies, technology stacks, latest IT-OT integrations, and adoption of disruptive business models to create new customer experiences and competition. 

 

 

Key areas influenced by digitalization

 

 

In 2016, a World Economic Forum report estimated that about $100 trillion will be added to the world economy through digital transformation by the year 2025. While these figures can change and surprise us in over a year from now, staying abreast with emerging technologies and embracing innovation early will continue to add momentum to gaining substantial competitive edge regardless of company size. Here are some areas seeing technology being integrated into traditional businesses, to coexist in the modern business landscape.

·        Intelligent Operations: The incorporation of Artificial Intelligence (AI) into traditional business operations enables predictive maintenance, reducing downtime and enhancing efficiency. Furthermore, AI is being employed to understand consumer behavior, making it easier to adapt strategies and offerings to evolving customer preferences. With the availability of data and computing power, businesses are becoming more agile and ready for future demands.

·        Workflow evolution: Technology is disrupting existing workflows and introducing new ones. These changes streamline operations and empower businesses to adapt to shifting market dynamics. Through automation, workflow management, and collaborative tools, traditional businesses are reaping the benefits of technology by optimizing their internal processes and fostering a culture of innovation.

·        Smarter hardware and data-driven insights: Even businesses involving hardware are making strides in technology adoption. By infusing technology into their hardware, these companies create smart, connected devices that generate valuable data. This data, when analyzed, provides actionable insights. For instance, in manufacturing, sensors on machinery can collect data about equipment performance, enabling businesses to improve maintenance and reduce costly downtime.

·        Data-Driven Decision-Making: Digitalization has enabled greater predictability for real-time and future business. From supply chain management to inventory control or forecasting demand and optimizing logistics, the ability to access real-time data and analytics has led to more automation and autonomous decision-making on or off the field. This newfound data-driven approach allows traditional businesses to react swiftly to market changes and make faster decisions across multiple aspects of their operations.

·        End-to-end technology infusion: From design to production to performance to supply chain management, technology is infused at every stage of the business process. For example, computer-aided design (CAD) streamlines the product development process, while the Internet of Things (IoT) sensors in production facilities provide real-time data on equipment status. This comprehensive integration of technology ensures that every aspect of the business is optimized for efficiency and effectiveness.

·        Customer centricity: By harnessing multiple data points and analytics, traditional businesses are gaining a deeper understanding of consumer behavior. This enables them to achieve greater customer satisfaction with help of real-time insights for business excellence, service portfolio innovation, gauging client preferences, product suggestions and other key information that deeply connects with clients and their users.

·        New business models: As technology permeates every facet of traditional businesses, new business models are emerging. E-commerce platforms are becoming increasingly popular, enabling these companies to expand their reach and tap into the digital market. "Product as a service" models are also gaining traction, offering customers subscription-based access to products and services. These innovative approaches are diversifying revenue streams and expanding market opportunities.

 

 

To sum it up, companies that acknowledge the game-changing potential of emerging technologies and allocate resources towards their evolution and seamless digital incorporation, stand in a prime position for future success. Through continuous awareness, adaptability, and a commitment to harnessing the potential of these breakthroughs, businesses are unlocking growth opportunities that were once considered out of reach.

 

 

 

About the author:

 

Pankaj Vyas

CEO & Managing Director, Siemens Technology and Services Pvt. Ltd.

 

 

 

  

 


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