Transformation into Data companies – Bluff or the future?

The world is turning digital, even though it started to be more popular in the 1990´s every year more and more people is getting connected with each other from different parts of the world. In last year, 21.9 billions text messages were sent EVERY DAY, compared with previous year with 18.7 billion, which translates in more than 15% increased in digital traffic, only with text messages and communications with people. Needless to say in this scenario we are still missing the IoT with its big amount of data generated every day.

Billions of people are using social media and digital connections to express themselves more and more, sharing ideas or simply engage with each others.

We are attempting to a explosion and bump of connections , data and innovations. Digitalisation is an imperative for every single company that wants to take a piece, in a bigger or smaller size, of the market. And are those, who have to go beyond that, (Big data, analytics and Social Media) and give what people is expecting form them, a mix of traditional customer and increasing digitally.

“The aggressive use of data is transforming business models, facilitating new products and services, creating new process, generating greater utility and ushering in a new culture of management” – Prof. Walter Brenner. University of St. Gallen (Switzerland)

Now, two points of view face each other in this scenario, those who consider it as an opportunity and the ones who see it as a threat.

According to a study by MIT Sloan and Capgemini “ Only 15% of CEO are executing a digital strategy, even though 90% agree that the digital economy will impact their industry”

In one hand, there is the argument than rather than help us, the trend of automatisation, will only destroy most of our current jobs. Due to computerisation, automation and robotisation some of our jobs will be in risk over the next 10-20 years. It could also means, the transformation of our relationship with the machines/worker.

The peripheral of Europe seems to be those countries exposed to most to the possible damage of computerisation.

One if these threats is the total dependence on “data masters” – servification. Which is nothing but laying back and relax your cup of tea while the machine is ordering new galloons of water based on information that you didn’t give to it but data that takes from the fridge. Another example could be what Samsung has done with the printing. When the ink cartridges are running out, it orders new ones from the company. You have done nothing, the machine has done it for you instead.

“Likewise, countries with developed broadband infrastructure and workers´ e-skills, as well as widespread use of the internet and the digital public services, are likely to be less threatened by digitalisation than countries with a less developed digital infrastructure”. – ETUI Article on Medium.

On the other hand, sit those see more benefits and opportunities than negatives sides on the digitalisation trend of the companies.

It can connects the world even more than now, create more opening systems and since we share the same type of economy we would have more knowledge about it. It will integrate more the industries, services and will create more ways to collaborate between the workers.
Taking the argument of destroying jobs and turning it upside down, some claim, like Doctor Neil Degrease Tyson that I will destroy some of them yes, but we as intelligent human beings will create more. I will hep us to involve forward with innovative and more creative tools, strategies to not settle down “making life easier”.

One aspect that we like the most is that it will bring more Agile working methods, and we are big fans of them; organisations, flexible and more autonomous work. Having the chance of connecting everything 24/7 will allow large teams to work side by side without the interruptions of time zones or connectivity issues. Being able to stay updated in your coworkers task will give you a big advantage and added value.

Diverse studies show that those companies who adopted earlier digital strategies to adapt the trend have:

• 9% higher revenue

• 26% greater impact of profitability 

• 12% more market valuation

(MIT Sloan and Capgemini)

However, even thought digitalisations seems like a good bet for future marketers, analytics have shown us that only 15% of CEO are willing to give it a chance. Why is it? How come something that looks so beneficials for our company doesn’t not attract us very much?

Scoot Feldman and Puneet Suppal say that it is because of one of the most old thinking that we humans have. The uncomfortable to the changing situations.
We found conformability in the non-moving situations, our routine, stability and predictability.
And definitely it is not the same decide weather to stop smoking or not, running a company is a very challenging exercise that most of the people will shy away when big moments like pivoting to a more digital strategy will appear. Specially in such a evolving a rapidly changing environment like the digital one.

The main purpose of the companies pivoting towards data companies is very clear. Customer Care.
It is the main reason why a company holds all that amount of information and breaks it down into services or the improvement of them. Some examples of organisations starting to develop this type of strategies are the following:

Porsche has one of the main strategies towards digital strategy and customer, which is Customer experience. With all the devices and data stored in each and every car, the company has been able to keep track and save all the different customisations that each customer had within their own car. Doing that, they wanted to personalise the services that will be given to the customer in the future. Obtaining more of their loyalty.
Deloitte is working in one project called Deloitte Digital Today, which is another way of understanding better their client base.
Amerisourcebergen, an american drug wholesale company that is promoting in the company the culture of curiosity and innovation making special emphasis in Big Data and its applications aimed to position themselves in customer’s mind.
Rockwell is an American provider of industrial automation and information products and what a better environment to develop a digital strategy to customers than their.  Understanding the commands used by the people with different tools will allow them to create and build better tools for the customer to use.

We are 24/7 and 365 connected between each other, another parts of the world, sharing ideas, projects, talking, messaging, working… we create a huge amount of data every single day. And we mostly do it through Whatsapp, imagine the quantity of useful information that this company has from us. How many times per day we talk with each person, topic, when… etc etc. That could be a brilliant advantage for a company who aims to sell ads, right? Well, stop imaging it. Facebook just bought it!

The biggest social media/ads company in the world achieved one of the biggest sources of data in the world. Everything, again, aimed to improve the customer experience and give to the people connected to the network a better type of commercials, ads, publicity… technology (whatever you want to call it).
Facebook realise the importance of the Big Data and the add value that it can bring to each institution, team or organisation.

Do you think other companies will follow?

Guest article written by: David Ayza Enero, Marketing Manager at Apiumhub, software development company specialized in software architecture and web & app development. Passion for new technologies, sports with the hobby of writing articles and share knowledge about new technologies, methodologies in the industry and its diverse applications. 

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