Nowadays, we live in a primarily digital world. Almost everything has transferred online or became digitized these days. The fact of the matter is that technological innovations and advancements are disrupting industries left and right. Simply put, modern technology is forcing industries to take on a new approach, in order to remain relevant in the market, as well as remain efficient. However, technology isn’t the only reason industries must consider a digital approach.
As a matter of fact, it’s the consumers and their purchasing
habits and behavior, as well as their tendency to follow the latest trends that
also forces industries to adapt. If you don’t adapt, in order to meet consumer
expectations and needs, your competitors will most definitely outrun you.
Companies across various industries must simply develop a more consumer-centric
solution, in order to continue providing a seamless customer experience. That
being said, here are a few ways how digital transformation is shaping
Chasing a competitive advantage
Newest innovations on the market are always regarded by
companies as an opportunity to outrun competitors. The main reason so many
companies across various industries are prioritizing digitalization is that it
may allow them to gain a competitive advantage. It only takes a single business
to disrupt an entire industry and drastically change the rules simply by
adopting a new technology or developing a new approach.
That’s why most companies are in one way or another
prioritizing digitalization. As a matter of fact, 47% of company CEOs stated
that they are being pushed towards adopting a digital approach for
their business by their board of directors while 56% stated that their business
digitalization efforts are already increasing company profits. In essence,
while some companies are considering digitalization others are already
implementing new strategies and approaches. In other words, the digital
transformation is bound to happen across various industries sooner or later.
The fact that every industry is about to experience a
digital transformation is evident. Even the industries that are less likely to
consider digitalization, such as oil and gas sector are in fact, doing so.
Resource exploration industry has so far avoided digitalization but even they
have to adapt to modern trends and innovations. The main reason is that a
digital approach enables the oil and gas sector to improve efficiency, reduce
operational costs and streamline entire processes, among other things.
That being said, oil extraction professionals that are keeping up with the latest technology have implemented an ecommerce solution. As a matter of fact, reliable oilfield equipment zone essentials can be easily bought and acquired online, thus reducing the downtime and maintenance costs for mission-critical equipment on the field. Not only that but artificial intelligence and automation are also making their way into the resource exploration industry, helping operators streamline the processes of detection and exploitation of natural resources.
Meeting consumer demands
As mentioned before, consumer habits are oftentimes one of
the main reasons why industries and companies develop a new approach. After
all, if you’re not relevant to your customers you will lose a battle to your
competitors. Consumer demand for increased and improved connectivity, as well as
their increasing interest in smart devices and IoT (Internet of Things), has
already made an impact on various businesses ranging from retail to ecommerce
and so on. These demands have made their way even to the automotive industry.
Nowadays, one of the rising trends in this industry is
self-driving and highly connected vehicles. Therefore, the cars of the future
won’t be able to fly anytime soon but they will surely be able to drive
themselves. Vehicle manufacturers and sales dealerships are also adopting a
digital approach for their consumers. As a matter of fact, 75% of consumers who
are interested in buying a vehicle will conduct their research online.
Moreover, a digital approach in the automotive industry is also there to serve
new consumer needs, especially since 56% of millennials would rather avoid
interacting with salespeople in person.
Reshaping the logistics
The distribution and logistics industry is also experiencing
vast changes due to the digital transformation. Logistics and distribution
providers are practically being forced to adopt a new approach because their
clients are doing so as well. For example, retail and ecommerce sectors are
leveraging the newest technology to its fullest potential, thus making numerous
promises to their customers, such as next-day or even same-day delivery, in
order to boost customer experience. Also, manufacturers in the automotive
industry want materials delivered at the right time for production, in order to
avoid having to store materials around.
These demands force distribution and logistics providers to
step up their game and deliver on their clients’ expectations. Even though
logistic providers aren’t part of major brands per se, they still feel
responsible for representing those brands through their services. Therefore, as
manufacturers and retailers implement their digital approaches, distribution
and logistics providers must become an extension of their clients’ brands, in
order to remain competitive and relevant.
The world is already reshaped by the digital era and it continues to be transformed. As technology continues to advance, the increasing need for new solutions challenges various industries. Even the industries that are reluctant to transform will eventually have to do so. That is if they wish to remain successful and competitive in the market.
Guest author, Raul Harman, is a B.Sc. in Innovative entrepreneurship and has a lot to say about innovations in all aspects of digital technology and online marketing. While he’s not enjoying football and great food, you can find him on Technivorz.com