Living in the era of Digital Transformation

Digital transformation and technology advancements have had a huge impact on businesses and society in general over the past couple of years. Both during and after the pandemic, the world saw multiple technological innovations, as a result of adjusting to changing needs. Businesses can now take advantage of the new digital transformation tools to change the way they interact with their customers, make decisions, manage data and more.

Cutting costs vs transformation

Cost-focused transformation is a prominent trend among modern businesses, as cloud-based solutions, for example, can lead to cost savings. At the same time, only a small percentage of businesses can manage their expenses in a sustainable manner, while most end up being less competitive as they’re spending money on the wrong things. To make sure that your money is well-spent on strategic goals, such expenses should be considered as investments that will actually help your business grow. It is essential that you continuously reduce bad costs and redirect your resources to initiatives that will build and drive your ability to differentiate from competition.

Mitigating supply chain disruption

The disruption caused in supply chains worldwide due to the pandemic has not yet been restored. Economic uncertainty, shipping delays, supply chain bottlenecks and material shortages are still affecting businesses of all sizes. Planning tools and processes need to incorporate flexibility, visibility, and the ability to manage macroeconomic risks.

It is possible, for example, that disruptions in the supply chain will force businesses to reevaluate their reliance on a single source in the future. Suppliers will be called to perform joint forecasting, which means that they will have to share more data with OEMs and give them prompt warnings.

A service-based future

Thanks to the power of digital transformation, the as-a-Service model is now a reality across industries. Security, networks, databases, communications, transportation and even healthcare are all areas where products are now launched as a service. This is undoubtedly one of the most prominent trends, that has already created disruption in all industries and is expected to grow even more. As a result of these technological disruptions, it is vital for leaders to know how to develop innovative strategies capable of addressing the expected and unexpected impact of these changes.