Blog article
See all stories »

Digital Transformation Priorities

Cloud based services are considered to be an enabler for many other transformative technologies. IHS Markit survey respondents agreed that beyond storage and simple computing, modern business requires that companies have access to value-added tools built as easy to plug in APIs. Almost 40% of the 200 companies that took part in our research named cloud as the number one priority in their technology transformation. A high percentage of these companies are using a hybrid of public and private cloud today and are considering further migration. Amongst businesses built completely in the cloud or the ones that moved all operations to it, advanced analytics, big video and blockchain and ledger were named as future priority projects.

Advanced analytics is defined here as the ability to collect, process, analyse and act upon the data available. It includes all processes from smart manufacturing all the way to voice, face and object recognition, subject to the industry the company operates in. Similarly, looking at the functional area of a company, it may be used for instance in the product planning stage, but likewise in communication with customers and the ecosystem. The outcomes of processes built under advanced analytics initiatives should be aligned with companies' goals and support its agile decision making. 21% of respondents stated that AI is their priority.

Video is omnipresent. On average, people spend over 280 minutes in front of various screens per day, amplified by their time with social media, screens in taxis, trains, buses or at work exchanging via collaboration platforms. Long-form content, short form content, advertisements, webinars, events and educational schedules are types of content that are easily available. People must decide what to absorb, when and for how long. The ratio of availability versus time constrain forces creators including businesses to prepare more targeted messaging. Companies implementing big video should be utilizing the benefits of advanced analytics to learn about the preferences of their target groups. Almost 20% of respondents named big video as the area they will concentrate on.

Over 14% of respondents are considering blockchain and/or ledger technology adoption or have existing projects related to it. Most of these companies would use this technology to reduce supply chain costs, improve the accuracy of data and other various processes. Although blockchain/ledger can be used in any industry, companies dealing with financial transactions, direct payments and with a wide number of internationally spread suppliers tend to favour it.

Connectivity is often neglected, and a high number of businesses do not consider it to be worthy of investment. Nonetheless, for over 5% of companies, investment in connectivity means access to new clients, new technology such as drones used for delivery or generally lower latency services. In other words, it can bring a competitive advantage.

Summary

Information-driven companies have a competitive advantage over comparable businesses that do not use data in their day-to-day operations. The trend stands correct in almost every industry and geographical region. Transformation is not always easy due to legacy processes and equipment as well as the requirement for cultural change and acceptance. It has been proven that information can reduce cost, increase sales, create stronger customer traction and increase the value for investors and society.

IHS Markit primary research confirmed that there is a wide understanding between leaders about how transformative technology is critical to necessary process improvements. As with any major change there will be obstacles and debates; not all projects will finalize as planned but it is imperative to discuss pros and cons and decide on a company level what brings the best benefit and when is the right time to implement while assessing the TCO.

a member-uploaded image
1773

Comments: (0)

Przemek Bozek

Przemek Bozek

Technology Specialist - Private Equity

IHS Markit

Member since

10 Mar 2020

Location

New York

Blog posts

6

This post is from a series of posts in the group:

Fintech innovation and startups

Disruption, destruction, harmony and creation; Fintech’s new frontier – a place to discuss the cutting edge of innovation.


See all

Now hiring