Digital technologies and trends are redefining our world every day. Disruptive and innovative technologies such as the Internet of Things (IoT), artificial intelligence (AI), cloud, analytics and others are changing business models and driving exponential growth. Companies which are leveraging these are and will continue to realize successful business outcomes. However, enterprises that are harnessing the combinatorial power of all these technologies now are better positioned to capitalize on the unlimited growth opportunities. By unleashing the power of technology to drive enhanced customer experiences, robust ecosystems, and unparalleled innovation and growth, yesterday’s traditional enterprises are digitally transformed into today’s future-ready, or Business 4.0, organizations.
Enhancing customer experience through mass personalization
Customer experience is a brand’s greatest advertisement. And with the intersection of digital technologies such as AI, analytics, cloud and interactive services, companies are transforming to personalize every interaction, transaction and touch point to enhance customer experience.
In the travel industry, customer journeys begin long before customers board flights. Dutch airline KLM is making significant investments in AI. KLM keeps passengers up-to-date with flight information using its Amazon Alexa voice recognition installations at Charles de Gaulle Airport in Paris. Moreover, KLM’s AI-led systems provide customers with relevant information when they contact the airline’s call centers. The airline is also transforming other parts of its business which have direct impact on customer experience. KLM is currently building systems to predict when an aircraft will require maintenance.
By tapping into the 25,000 data-delivering sensors in an A380, or the 500GB of data produced by a Boeing 787 on an average flight, the airline is harnessing insights to transform customer service by minimizing delays.
In the logistics industry, customer experience is enhanced with trouble-free, on-time delivery. Nordic postal delivery service, PostNord is in the privileged position of having a wealth of data at its fingertips. The company is capturing much of this data to transition to a Business 4.0 enterprise: using sensors in delivery vans to track distribution, while leveraging the Internet of Things to carry out predictive maintenance in production facilities.
Additionally, PostNord is using AI solutions to cut mail delivery delays by 25%. Björn Ekstedt, PostNord’s Chief Information Officer, says that the beauty of such systems is that they weed out problems before they can take root. Not only does this
drive productivity by reducing the amount of human intervention, it dramatically improves customer experience.
Bolstering innovation and growth by connecting collaborative ecosystems
Companies which are succeeding with ground-breaking innovation and faster growth aren’t doing it on their own. They are connecting collaborative ecosystems that extend beyond the enterprise to span the entire value chain – including customers, peers and partners, and they are relying on digital technologies like IoT and cloud for success.
Initially, most companies moved from legacy in-house systems to cloud-based solutions to reduce the overheads associated with maintaining hardware. Today, companies are turning to the cloud to deploy cutting-edge solutions and services with minimum lead time to take advantage of changing market dynamics. Cloud technologies are also enabling growth – simplifying and accelerating business integration following mergers and acquisitions by offering companies access to infrastructure and services on demand.
The Netherlands’ leading bank, ABN AMRO is using cloud apps and providing external developers access to their developer portal, turning regulations into opportunities and gaining an ecosystem of co-innovators in the process. ABN AMRO’s use of cloud and an expanded ecosystem of external developers exemplify how Business 4.0 organizations are fueling growth and innovation.
Fueling growth strategies by embracing risk
By combining an agile methodology with today’s powerful digital technologies, companies can actually embrace risk, yet quickly adapt and modify, continuously driving growth and profitability.
Transamerica, a leading provider of life insurance, retirement and investment solutions, has embraced risk to transform the administration of its US-based insurance and annuity business lines. By transitioning to a simplified, cloud-enabled platform, Transamerica is fueling growth by enabling agile new product development. Further, by simplifying and modernizing the servicing of over 10 million insurance policies, Transamerica will save millions of dollars each year.
Redefining business models to create exponential value
By enabling contextual insights and constant connectivity, digital technologies allow companies to go from realizing incremental gains to unlocking exponential value.
IoT, for example, connects machines, devices, sensors and systems to rapidly process and interpret equipment data and intelligently manage performance to prevent potential problems from becoming real ones. With continuous insights into product performance and how users are interacting with devices or services, companies now have unparalleled opportunities to fuel innovation across the product development lifecycle.
Rolls-Royce, a global leader in aerospace, engine development and the energy and marine sectors, uses IoT-enabled technologies to eliminate manufacturing and supply chain inefficiencies and to predict more effectively when equipment maintenance is required. “IoT will allow us to take advantage of fast-paced data innovation – including accelerating our application of industrial AI and a range of other cutting-edge breakthrough opportunities,” Neil Crockett, Chief Digital Officer at Rolls-Royce, says. Rolls-Royce is now expanding its digital capabilities to deliver increased value from existing services and introduce innovative services to customers across the group. Rolls Royce’s use of IoT and adoption of a more innovative business model exemplify how Business 4.0 organizations are driving exponential value.
The future is here
Some of the world’s most successful companies – KLM, PostNord, ABN AMRO, Transamerica and Rolls Royce have embraced technology and risk to redefine customer experience as well as traditional ecosystems and business models.
Through technology driven business transformation, these and other future-ready, or Business 4.0, organizations are positioned to lead their industries in defining the future of business.
About the author(s)
Business & Technology Services
TCS’ Business and Technology Services organization combines the power of business excellence with digital innovations to help enterprises and leaders be purpose-driven and performance-oriented, making the shift from shareholder value to stakeholder value. By harnessing the abundance of data, talent, connectivity and capital, B&TS helps leading companies around the world build ecosystems that fuel growth and innovation, foster collaboration and engagement across ecosystems, improve health, safety, and well-being, enabling empowerment and inclusivity, and driving sustainability and positive environmental impact.