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Elevating the business model with aspects like digital transformation, automation, large data collection, IoT and many more advantages of Industry 4.0

4 Compulsive Advantages Of Industry 4.0

A perspective of the revolution, Industry 4.0 as it finds itself in a transitional phase.

When computers were introduced to the world, the revolution it created still stands fresh in the minds of those who witnessed it. Such waves created by technology are never-ending and right now, we are at the next transitional phase, which has been brewing for quite some time and is all set to lead to a new high in the industries. While some claim that Industry 4.0 is a mere marketing gimmick, one cannot help but notice the huge impact it is already creating in various forms like AI, Internet of Things, Cloud technology, big data and analytics, cybersecurity, augmented reality, etc. Industry 4.0 is the revolution that is believed to be the extension of what appeared in Industry 3.0. It is about how to revolutionize the whole process of business and its growth.

Why It Is Better To Adapt An Industry 4.0 Model?

No industry is devoid of technological dependence. Elevating the business model with aspects like digital transformation, automation, large data collection, and many more specific ones naturally have several advantages.

1. Competition against big companies

A startup, with the right investment in technology and digitization, would be on a similar platform as any giant in the same field. With all businesses, big and small, working on similar developments and having similar investments, large corporations also collaborate more with smaller firms to help them move faster in the direction of industry 4.0, thus making the competition almost equal or keeping them on a level playing field with corporate giants.

2. Attract more young blood

Modern and innovative technology attracts young and new workers as even education focuses on these specific needs of the industry. Businesses are at an advantage when the resources are pre-trained rather than investing time and energy in training the existing resources. Fresh minds also mean fresh ideas. In a business world demanding constant innovation and rapid growth, there couldn’t be a better time for both businesses and youngsters to grow together.

3. Resolve potential issues before they latch on to the progress

Automation, real-time data, predictive analysis, etc. can save a humongous amount of time in terms of problem-solving. They assist in identifying potential issues and not letting them grow into bigger ones.

4. Cost effective

The technology involved in industry 4.0 revolves around optimizing all aspects of the business process, which eventually leads to smarter and faster decision making. Better efficiency means increased profit.

There is a ‘digital compass’ that helps companies identify their needs and find the necessary tools to achieve them.

Why Some View It Is A Marketing Fad?

There is always one section of the world against revolutions. This group believes that industry 4.0 is a marketing fad and what looks like valid reasoning is nothing but a myth to be easily busted. Unlike other revolutions, this does not involve groundbreaking inventions. This is more of an extension to what is already available from industry 3.0. Innovations, extensions, and betterment of technology can be categorized as a revolution if they result in faster and unimaginable changes in a short span.

Another reason could be that this being a transitional phase, there isn’t a clear and widespread adaptation to the newer models. Companies are experimenting and trying to implement them within the current business models. When all businesses rely on them and the cycle is complete, it would register more like a business revolution than as a marketing fad.

There are formidable challenges in adapting to new technologies and working models. However, the future looks bright as resources would be equipped already and needn’t be trained on these specific skills. Once the businesses get hold of this rapid growth and transition, wiser decisions and utilizing the wider scope smartly would make them unstoppable. The impact of digital transformation in business proves to be learning curves for businesses to be quick and sure of the unique kind of transformation needed for them. This looks to be a swift transition and it is not long before that we see its full impact on industries.

Written by Jayashree in August 15, 2019
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Larger firms have a better view of the problem, for which startups prove to be problem-solving. A quick look at how Corporate Venturing acts as a win-win.
Enterprises, Startup, Technology

How Do Larger Firms Depend On Startups To Develop Technology?

A quick look at how Corporate Venturing acts as a win-win for the parties involved, the enterprises and startups.

The interdependence of larger firms and startups has become the norm in the world of technology. While big companies look to maintain their position intact in the competitive market, as they are constantly on the look-out for up-to-date and futuristic technology at the same time, startups become their go-to. Simply called Corporate Venturing, several big companies rely on startups to innovate and explore the industries ensuring minimum damage and maximum growth.

A study claims that Corporate Venturing was on a continuous rise throughout 2018. We cannot deny that the current year and the future will only see better investments.

Why Startups?

1. Innovation

Startups are constantly challenging the status quo and are hungrier than any established firm. The fire within to rise and shine has to be fuelled with proper finances. The big firms already have set systems in place and flexibility becomes rare inside the working environment, making it challenging to innovate at the speed which the market demands. Startups ensure a pipeline of new ideas to continue growth. With an ocean of workers and firmly rooted systems, it is almost impossible to expect speed and precision at the same time.

2. Exchange

In return, these firms offer finances, workforce, an easy establishment in the market, facilities, etc. The little spark of an idea is kept alive by these factors, which most of the startups do not possess. They do not have the means to scale their business. Larger firms act as catalysts to learn, explore and execute their ideas while also understanding existing business problems from a better perspective. In short, larger firms have a better view of the problem, for which startups prove to be problem-solving.

How Do These Firms Make Sure They Engage Well With Startups?

Big companies might not invest only in one startup. While they have their sights on many of them simultaneously, they make use of the specific capabilities of each startup rather than depending on one for every innovation. This results in an all-round development within a short span. In turn, the startups get access to the firm’s customers and the market easily.

When a startup presents an idea, if the firm validates it, there is a huge opportunity for the startup to experiment their solutions in the market practically. Startups are persistent. They are out there to prove a point. Hence, when something fails, it is not the end of the world. With enough trust and patience from the investing firms, their chances of succeeding go higher.

Collaboration need not always mean partnership. A lot of these big firms look for shorter relationships with startups and move on to other options. Sometimes, they can be mere extensions of the existing teams in a firm. Know the impacts of digital transformation in business. The brighter side of this is that the startups gain their customer base and also have a practical validation for their products and solutions. With clear communication on what they expect from the larger firms and where the collaboration leads to ensure a healthy relationship on both sides.

A successful partnering demands discipline, patience, focus and respect from both ends. Clear communication on expectations, demands, and requirements will put away any complication. With the right proportion of win-win in the mind, startups and big firms can collaborate to create a world of technological wonder.

Written by Jayashree in July 18, 2019
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