Technological transformation has an important impact on improving efficiency; however, those companies that do not see the process as a data generator will have a limited growth potential.
Over the past twelve months, while developing business strategies for clients, we asked them in detail who their competitors were. Generally, managers named companies that did the same thing as they did, in the same way.
What technology changes in companies
There is no doubt that as technology moves into companies, it generates important transformations in the way things are done, particularly, among other things:
- Increased operational efficiency. The comparatively fast and tangible impact it has on the standardization of processes leads to significant increases in operational efficiency and employee productivity.
- Creation of secure information environments. It improves communication processes, both internally among employees and externally with customers and suppliers, generating secure environments in the management of information.
- Opening to new companies. Understanding the impact of technology leads to a greater openness to collaborating with other companies, also generating an effect on the culture and on the relationships within the company.
Therefore, the benefits of implementing technology are of tremendous value to the sustainability of the company.
Datalization, the most important step
But if there is one change that generates a differential shift within the organization, often not very tangible, it is the continuous generation of data, which in turn allows the creation of extensive databases that, well managed and analyzed, are the basis for detecting new business opportunities. Because these databases contain, among other things, information about customers or potential customers who have some kind of interest in the company.
Once companies begin to increase the volume of records and enrich the quality of their databases with the behavior and transactions of customers, the role of technology changes from being a pure factor of cost reduction and increased efficiency to becoming a key element in the development of the organization’s strategy, increasing its importance within the hierarchy of the organization.
This is the moment that determines that a company has managed to take the most important step of its technological transformation: datalization, in other words, the use of data to expand the business.
Having traditional competitors as a reference exposes the inherent limitations of understanding potential strategic paths of business growth, which puts the sustainability of the business at risk over the medium and long term.
New products, new services, new industries
New products, new services, and new categories or industries begin to be part of the strategic process of growth, because placing value on the information they have within their organization allows them to identify new needs of their clients in a simpler and faster way; therefore, reaction to their demands will be more agile and precise. If your company does not do it, another one will.
Innovation through alliances with third parties, joint ventures, or the development of operational innovation centers among several companies are beginning to be collaborative figures with a long history that try to address new market demands, thus limiting the risk involved in entering new areas of growth.
This is the opportunity that large technology companies began to take advantage of years ago, shaking up and breaking the value chain of different industries and forever changing the way they generate income and capture new customers.
When the competition is no longer the same
The competition of traditional banking, anywhere in the world, is no longer traditional banking; instead, it is the big technology companies, the fintech companies that take advantage of the slow movements of traditional banking, and other corporations that have a large volume of clients and the capacity to finance them.
Energy companies, in addition to electricity or gas, began to sell more efficient light bulbs, solar panels or insurance, which helped to strengthen customer loyalty by understanding their needs.
Traditional media have never reached more people than they do now; however, as years go by, they see their bottom lines repeatedly deteriorating.
The advertising industry suffers the impact of the big technology players, who take advantage of the huge scale of users in their databases to address them directly, without intermediaries.
Urban mobility underwent a radical change when ordering a cab from a smartphone took just two simple steps; in addition, these companies took advantage of the development of their technology and databases to offer other services to their customers, such as food or gift delivery.
Technological transformation is not only about implementing technology to save costs; it is about generating data and putting it at the service of the organization’s business strategy. It is then that you understand that your competitors are no longer those who do the same thing and in the same way as your company.
