What is digital? There is no consistent definition for it. Everybody is viewing digital in a different way these days. For some it may mean putting up a website. Some of the ecommerce companies think that they are digital. However, the question is: are they truly digital? Many experts believe that merely having a digital presence is not enough to be called truly digital. These are rather bread and butter technologies as they do not have basic competitive differentiators.
In fact, digital transformation connotes several emerging technologies and capabilities which go into the making of a digital architecture. Such elements include, but are not limited to, Internet of Things (IoT), Natural Language Processing (NLP), mobile, social, analytics and cloud in a combination and used together, 3-D printing, the infusion of IT with operational technologies, etc. According to Bhavish Sood, Managing Partner at 3737 North Capital India LLP, no matter which vertical an enterprise operates in, whether it is securities or manufacturing, it needs to have these elements in some measure in order to be considered truly digital. This is the stack which constitutes digital.
“Many companies are not examples of digital. When you use the phrase digital transformation, the core capability you need is the Internet of Things (IoT). If you don’t have IoT as a part of your technology stack then you are not exactly digital,” he adds.
No wonder as enterprises seek to go digital there will be a massive expansion of IoT and we already see it becoming part of our life: from digital payments, to the way we shop or even interact with each other. Today, there are millions of connected devices, smartphones as well as Internet users. This number is increasing by the hour. According to IHS Markit, the number of connected Internet of Things (IoT) devices worldwide will jump 12 per cent on average annually, from around 27 billion in 2017 to 125 billion in 2030.
IoT Market to grow to $561.04 Billion by 2022: MarketsandMarkets
Moreover, IoT market is expected to grow from USD 170.57 Billion in 2017 to USD 561.04 Billion by 2022, increasing at a CAGR of 26.9%, according to a report by MarketsandMarkets. The report considers 2017 as the estimated year for the study and the market size forecast is done from 2017 to 2022. The Internet of Things market consists of vendors providing IoT services to their clients.
Companies like SAP SE (Germany), Intel Corporation (US), Cisco Systems, Inc. (US), Microsoft Corporation (US), Amazon Web Services Inc. (US), International Business Machine (IBM) Corporation (US), Oracle Corporation (US), PTC Inc. (US), Google Inc. (US), Hewlett Packard Enterprise (US), Bosch Software Innovation GmbH (Germany), and General Electric (US) have already adopted partnerships as well as collaborations as a key strategy to expand their market reach. This strategy has accounted for the biggest share of the strategies adopted by these market players.
Digital transformation involves use of several emerging technologies and capabilities, which alone can go into the making of a truly digital architecture. In order to qualify as digital, truly transformative change is required rather than cosmetic or incremental ones.
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