Digital transformation is the key for growing business in the future. Lately we have seen many business cases with new, distruptive strategies, which will transform the whole business sector. Tesla was one the innovative companies last week to announce a new battery for homes and companies to store for example solar energy to be used in peak hours. This was a big step for electric cars manufacturer. This kind of trend will change the profitability of traditional utility companies and the whole energy ecosystem we are used to. Why have we not seen the traditional utility companies or car manufacturers to innovate new business areas like this before? Maybe we hear more this kind of questions in the future. Traditional business sectors are facing new competition from areas they do not expect.
Digital transformation is about making the products and services with new information, more engaged, faster, reducing cost and delivering more value to customers than before. It is about using the new technology to deliver more outcome and fun to stakeholders. Different sectors and business areas are more advanced than others, but new services like cloud will change the business totally and internet of things will fasten the development even more. And the next big question is if the company has embedded the corporate responsbility into its strategy and innovation. Climate change, scare natural resources and urbanization are affecting every business globally.
In the future we will see for example personlized medizine, predictive maintenance and analytics and more engagement. Consumer user experience will be the new black. Companies will be categorized to leaders and laggards dependent on the level of digital transformation and sustainability embedded. This is an opportunity for every company, but it depends on the management and boards to make it happen.
Digital transformation itself is a good example of sustainable living and process. It solves business problems, shorten product cycles, deliver more value with less energy & natural resources. Insights will follow insights and time will be saved in innovation process. Big data is helping to make analysis and predictions. Is your company part of this big change what is happening RIGHT NOW?
In circular economy we have seen innovations, but with the new set up of technologies we can speed up the transformation to greener businesses and processes. Technology is the key for the Earth to mitigate climate change and to reduce the emissions in smart cities.
Päivi Härkönen (MSc. Econ) is management consultant of ESG (environmental, social, governance) and digital issues, communications, marketing and branding.