Digitalization allows companies to change or adjust their business model based on adoption of new technologies or provide customers with new solutions increasing value-producing opportunities.
Companies have an increasing urgent need to create digital products to keep up with customers’ expectations in the digital world. Digitalization is the reason why such verticals as FinTech, HealthTech, EdTech and more emerged from finance, health and education and other industries.
What are the examples of digitalization processes that companies can leverage to drive innovations internally? What digitalization trends are most relevant for 2020?
Cutting-Edge Technologies in Digitalization
In 2018, 89% of organizations had plans to adopt a digital-first business strategy.
Adoption of the emerging cutting-edge technologies is the main focus of the companies on their way to digitalization.
Here are some of the most relevant ones for 2020:
- Artificial Intelligence
- Machine Learning
- Cloud Technologies
- Big Data
- Internet of Things
- Augmented Reality
- 3D printing
Impact on Sales and Revenue
In 2018, MGI estimated that an additional $13 trillion could be added to global GDP by 2030 from today through digitization.
At the same time, tech sales are considered to become nearly completely digital in the upcoming years. The graph below from Adobe Report shows the percentage of organizations’ sales delivered via digital channels.
According to the PwC report, highly digitized supply chains and operations can lead to efficiency gains of 4.1 percent, and a 2.9 percent increase in revenue, annually.
Digitalization Use Cases
A good example of combining multiple technologies to deliver the best-in-class customized experience for the customers is Nike Fit. The tool uses computer vision, data science, machine learning, artificial intelligence and recommendation algorithms to scan and measure the full shape of a person’s feet. It enables Nike to deliver perfectly tailored products for its customers.
Phillips is using 3D printing, big data analytics, robots, automated assembly and digital twins during production of its innovative products. These technologies enable zero defect manufacturing and demand-driven supply chains.
Coca-Cola Bottlers’ Sales & Services turned to Ripcord, whose special blend of Machine Learning software and robotics help process documents. Ripcord’s robots remove staples from paper invoices and proof-of-delivery documents and pass them on to its scanning systems which can sort them accordingly by leveraging Machine Learning.
Salesforce Role in Digitalization
Startups and innovations are one of the main driving factors for the world business digitization processes. To expand its offerings, large companies often acquire innovative startups that can be agile and flexible enough to drive innovation faster. For Salesforce it is very important to be a digitalization enabler for every stage of its business model — from software, to development and end user communication.
To make the Salesforce platform even more complete, Salesforce has acquired communication software company Vlocity. Built on top of the Salesforce platform, Vlocity provides industry-specific solutions for communications, media and entertainment, energy, utilities, insurance, health, and government organizations.