FOCUS FEATURE
THE DIGITAL AGE
a consumer or an organisation. Service providers have been quick to jump on the supply chain to provide rapid delivery and have used digital technology such as product tagging (bar codes, Q-codes, RFID tags) and GPS-based service scheduling as tools to expedite this. Now add to this the fact that this process has moved to mobile devices that are always on and provide information 24/7 and we have a whole new set of customer expectations around response times and customer service. Gone is the need to talk to a salesman to see the latest products or stock levels. Peer reviews are everywhere, as are alternative product recommendations. Poor customer service can destroy an organisation faster than ever before, as social media offers forums for complaints and negative reviews. It is mostly good news though – direct sales are more profitable, instant communication can head off issues or set better expectations, business data can identify opportunities for new revenue streams and markets, often in places and markets never before accessible. Social media opens new marketing channels and better analytical tools can help identify the most appropriate or profitable channels to meet your customers’ stated needs, preferences and desires. Get it right and the potential is limitless. Get it wrong and the potential for disaster is equally so. Which leads to the last challenge in digital technology deployment – risk.
Data: There has been a sea change in the amount of data that has been generated by digital technology. This carries its own challenges. Data is the fuel of the digital age but it needs to be
clean, appropriate for the required function it supports, available in a usable form and delivered in a timely manner. This requires resource, finance and skills and a clear view of business needs. Too little focus will lose customers, productivity and profit. Too much will reduce margins and add to process complexity. It needs to be seen as a business asset rather than as an
overhead and requires common definitions and appropriate policies and governance. Most of all it must be recognised that a lot of data is
borrowed from others and is dynamic. Keeping it clean requires the support of people outside of the organisation. Misuse of data is both unproductive and can even be a crime. New legislation around data protection comes into play in May 2018, requiring organisations to properly gather, store and use data - with the consent of the provider - that can be regarded as sensitive. Remember the three Ps – Permission, Preference and Privacy. Good business practice is the key to avoiding issues.
Procurement: Buying the right tools for the job is essential. Getting it wrong can be disastrous, especially for smaller businesses with little margin for error. Again, good business practice is key. Be clear about the business objectives and map out budgets, requirements - especially if an external supplier is involved - and timelines. Make sure there are measures and metrics to track success and risk strategies to contain or mitigate any issues.
Skills: The digital age has brought its own skills requirements and ensuring that these are available when needed should not be overlooked. The rapid growth in demand for digital technology has led to skills shortages in some areas and this will be the case for some time to come. HR, training and recruitment policies and headcount plans should be a baseline for all organisations, ideally with access to external resources for short-term or project- based activity and a budget to match.
Failure to effectively utilise digital technology: Probably the biggest risk of all. It’s a competitive market and an ever-changing economic landscape. Digital technology is the key to productivity from manufacture to customer relations, from opportunity to analysis. Process integration and automation can free up time from mundane tasks, reduce errors, open the door to new products and markets and drive sustainable long-term profits.
44 business network December 2017/January 2018
SO WHERE TO NEXT? The Internet of Things - It’s already here: Smart homes/cars/highways, Amazon Alexa/Siri/Cortana/Google Assistant, wearables, beacons, GPS, location based marketing, sensors, Bluetooth and NFC. The market continues to move closer to the customer.
Big Data: Directly related to the above. It started with utilities data - such as huge volumes of data related to phone usage, water or gas meters - and social media unstructured data, which is text based or context free. The old technology didn’t cope so it’s all change again.
Predictive Analytics: Statistical algorithms are everywhere and the computing power to match is almost here. Some of the possibilities opened by Big Data-based analytics include predictive maintenance, customer retention models, fraud detection and risk management.
Quantum Computing:Welcome to the world of statistics and probabilities. The old principles of quantifiable Newtonian physics are under threat from the uncertainties of quantum mechanics. Quantum computing means it’s no longer just 0s and 1s. Now there are ‘neither 0 nor 1’ values as well - technically known as quantum bits.
These are just a few possible growth trends, and most of
them are here or almost here and there is a vast array of support available to help businesses take advantage. To date, for example, thousands of employers and employees have accessed the Chamber’s Digital Growth Programme, utilising specialist support and guidance from experienced digital advisers and receiving grant funding to harness digital capabilities. One thing is for certain and that is that we are living in a
digital age that is here to stay. The businesses that successfully utilise the huge array of opportunities out there will, without doubt, have a fantastic opportunity to experience long-term success and growth.
‘Business data can identify opportunities for new revenue streams and markets, often in places and markets never before accessible’
The demand for technology has led to skills shortages
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