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How DX is driving real change in key industries – Part One

Matej Štefaník
Head of Product Management
This is the first of a five-part blog series looking at how Digital Transformation is impacting vertical industries. This first part takes an overview of changes within four vertical industries and the associated drivers behind the changes.
 

Industry impact

Digital Transformation is permeating every vertical market, and industries are looking to evolve in order to better align with their customer’s changing requirements. The result is the development and integration of cutting edge technologies and a change of methodology to improve processes.  

However, some of these technologies can feel somewhat futuristic, we have to ask: is Digital Transformation actually driving change today? The simple answer is, yes! Digital Transformation is radically changing how organizations operate and is shaking up industries at speed. Organizations are increasingly launching digital initiatives to expand or build digital capabilities to deliver business efficiency or increase top-line revenue growth.

Change is in the air

According to the 15 industries surveyed as part of the Gartner 2018 CIO Agenda Industry Insights report, 47% of CEOs are being challenged to make progress in digital business, and 56% of respondents reported that digital improvements have already improved their overall profits. These findings show that every industry is either already participating in or ready to join in with digital transformation.  

The 2018 edition of The Hackett Group’s annual key issues study (The CIO Agenda: Driving Value from Transformation) found that the use of virtual assistants, chatbots and other cognitive technologies are anticipated to grow at least fivefold in overall adoption rates over the next few years. Unsurprisingly, 74% of companies are expecting DX to disrupt their industry, 82%, expect it to fundamentally change the operating model of their business. This seismic impact prediction calls for immediate action, and many companies have already begun their DX journeys and are automating and streamlining business processes by investing in Artificial Intelligence (AI) and machine learning.

Going vertical

Below is a brief overview of the impact that digital transformation is already having on four verticals: legal, finance, education and manufacturing. Parts two through to five of this blog series will look at each of these industries specifically and analyze the impact digital transformation is having.


Legal

Traditionally, the pace of digital change within the legal industry has been slow, with the legal profession resisting much of the technological advances over the years. However, we are now seeing changes and an uptake in the use of Cloud, document storage, automated workflows, schedule assistants and mobility. Current technology such as chatbots and Blockchain is not yet widely used, but the disruptive impact will be felt in every law firm around the globe.


Finance

From mobile payments, online banking, chatbots, paperless billing and automated invoicing, the world of banking and finance has already adopted many new technologies. However, with the development of Blockchain and other automated technology, the disruption is nowhere near complete.


Education

Students are evolving as is the technology they use. Educational bodies are adapting to this change by increasingly using devices and online platforms for teaching, resources and engagement. The use of 3D printing, augmented reality (AR) and virtual reality (VR) are quickly developing into new teaching methods. The way we have taught has remained almost unaltered for generations, but digital transformation could well be the disruptive force to change and improve the way in which we teach future generations.


Manufacturing

By using technology, manufacturing organizations are moving away from mass produced goods to customized production, via a digital supply network. Incorporating and embracing robots, data, AI, sensors and mobility, the manufacturing industry is already dipping its toe into Industry 4.0.

Digital DNA

Successful digitalization of a business can disrupt the entire industry and rewrite the rules in a way that leaves their competitors playing catch up. The focus must be on what digital transformation can allow your organization and industry to accomplish. The important factor is not having the largest collection of IoT, virtual reality, artificial intelligence and 3D printing technologies, it will be on agility, innovation and the ability to holistically adapt to change.

Technology will disrupt existing ways of doing things, and those who refuse to become nimble and innovative will get left behind. No organization is immune to digital transformation. Don’t let your core business become obsolete by missing out on the opportunities to tap into technology to create a faster, more efficient, better version of the organization you already are. Rather than merely identifying all the ways in which digitalization can optimize your organization in its current form, you need to look into the future and absorb digital transformation into your organizational DNA.

Part 2 - How Digital Transformation (DX) is driving change - Legal Sector
Part 3 - How Digital Transformation (DX) is driving change - Education

To find out what to avoid, what to change and how to get ready, read our blog series on the topic. How is your digital transformation journey progressing? We’d love to hear your comments, please use the section below to get in touch.
 
Matej Štefaník
Matej Štefaník
Matej acts as a connector between customers, partners and development teams. He is a big fan of artificial intelligence and a cooking enthusiast, occasionally baking cakes using secret family recipes.
View all posts by Matej Štefaník

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