Digital technologies are enabling companies to generate deeper levels of insight across their whole value chain. The COVID-19 pandemic has further accelerated the trend and emerged as a catalyst for the adoption and increasing use of digitalization, says GlobalData, a leading data, and analytics company.
Manish Dixit, Principal Disruptive Tech Analyst at GlobalData, says: “The shift towards digitalization is driven by changes in consumer behavior creating avenues for development of new products focused solely on digital channels. Shifting regulatory standards, and the need to find cost-effective solutions to improve operational efficiency are the key drivers of digitalization.”
The Theme Exposure Map available in GlobalData’s Disruptor Intelligence Center compares the speed at which different technologies are adopted across industries globally.
According to GlobalData, digitalization as a theme is gaining higher levels of traction in technology, media and telecom, financial services, retail & wholesale, healthcare, and consumer industries.
According to GlobalData’s latest report, “VentureView: Disruptor Investment Activity Q3 2021”, digitalization seized 30% of the top 10 venture capital (VC) deals in Q3 2021, accounting for approximately $4.6bn in total investment. The technology crossed some of the traditional sector-specific bottlenecks given the advancements in financial, e-learning, and retail sectors.
Technology, media and telecom
Emerging technologies like AI, IoT, and 5G are influencing telecom operators’ core operations as well as customer interaction. New business models are evolving characterized by a shift from product-based to platform-based models. With AI-powered wireless mesh networks, consumers benefit from increased reach, better ability to handle devices, less interruption, and self-configuring architecture.
Financial institutions are investing in blockchain due to its real-time settlement capability, reducing counterparty risk and enhanced automation.Traditional channels are replaced with digital channels that leverage technologies such as AI, IoT, and blockchain to reach, connect, and engage more customers while lowering costs. In order to reduce downtime and maintenance costs, banks are rapidly replacing their legacy banking infrastructure with cloud-based technology.
Retail & wholesale
Retailers are realising the potential of drones for inventory management and last-mile delivery. Due to the increasing growth of e-commerce, retail warehouses and distribution centers have begun to install autonomous mobile robots capable of automating operations such as sorting and packing orders with minimal human intervention. Price predictions leveraging AI and big data allows retailers to forecast how customers will react to specific prices at certain points based on demand dynamics, allowing them to modify prices in real-time to maximise sales.
AI is being used in the healthcare to repurpose existing drugs to address developing and severe diseases such as COVID-19. Machine learning algorithms are being used to save costs and shorten the drug discovery and development cycle. While these technologies have applications in drug design, chemical synthesis, drug screening, and drug repurposing, the usage of robotics in hospitals is operational as surgical robots, nursing robots, and autonomous mobility robots.
Quality management systems powered by AI and the cloud provide complete visibility into CPG manufacturers’ operations, allowing them to comply with all regulations and requirements and overcome quality challenges.CPG companies are also embracing immersive marketing techniques to provide consumers with a more immersive product experience through technologies such as VR, AR, and mixed reality.
Dixit concludes: “The successful digital transformation is about long-term planning, adequate funding, talents, and organizational adaptability. Companies need to understand their core business needs to take full advantage of digital transformation. To get the most out of technology investments, businesses must be clear about the objectives they want to achieve and what investments are needed to get there.”