Posts for Digital Transformation Category

The world industries are looking at logistics with keen eyes for their overdue digital transformation. Innovation and agile changes seem to be the way up.
Digital Transformation

Digital Transformation and its Impacts on Logistics

Digital Transformation helps in overcoming the tip of the iceberg which seems to bug the logistics industry.

A company has employed Mr. X, who is in charge of truck deliveries to the customers. He travels 300 km to deliver a product and delivers many others on the way. Once the last order is delivered, he comes back empty, which becomes a burden on both the company and the environment. This is only one of the basic challenges faced by the logistics industry. The demand for physical delivery of products, typically known as “the last mile” and many other challenges like difficulty in data collection have contributed to the slower adaptation of digitization in the logistics industry.

Ways in which Mr.X can be helped by the organization with Digital Transformation.

1. Track and Trace

How the industry is trying to help Mr. X is by increasing transparency in the whole process. The company decided to track the delivery of the assets around their own manufacturing facility and over a period of time, identified a pattern and customer preferences. This led to identifying potential breakdowns in the supply chain beforehand and avoid such mishaps. This not only helped the truck driver but also increased transparency among customers, who were able to see what happens to their products in real-time. This reduced cost, increased transparency, eventually providing better service than before.

2. Blockchain

A customer places the entire trust in the company to deliver its product. How does this transparency increase to build more trust? While every other industry is almost there, logistics is just beginning. However, it’s never too late. The blockchain technology has increased transparency and also has made digital payment safer. Read a quick brief onBlockchain technology in governance.

3. Automation

To manage warehouses, the company started using automated forklifts and the systematic working helped resolve internal confusion. Soon, conveyer belts became the norm. To extend this, the company also experimented with autonomous trucks, which ran bumper to bumper, resulting in reduced costs and usage of lesser fuels while accelerating the process. This does not sound great for Mr. X but he was appointed as the in charge of all truck movements and he played a modified role in the company. Such investments on automation enhanced the overall experience for both the customers and the organization.

4. Innovation

Meanwhile, the problem of empty trucks still bugged them. They created a platform to collect data of trucks going in the direction of their requirements and allotted some of their products to be delivered on the way. Though this was risky in the beginning, there were some drivers who gained their trust in the process. Tracking them was easy as the necessary technology like GPS is already in massive use. The organization was also able to return the favor in some other routes, making sure their trucks weren’t empty throughout. This required modification of roles for some employees internally, but that did not affect the system in any way.

The Update Obstacle

The basic challenge is to follow all these on a regular basis. The experiment proved well but implementing this as a system requires more investment in all areas and updating of customer interface now and then. The data collected does not hold good for long time periods. This organization is an individual player working on a change. This will prove more beneficial if the entire industry moves at the same pace in this direction.

Of late, bigger organizations themselves have started completing “the last mile” as they come up with solutions themselves. Amazon drone delivery is a prime example of this. This does not mean the end of the road for third party logistics as their expertise and facilities cannot be matched immediately by organizations.

However, the world industries are looking at logistics with keen eyes for their overdue digital transformation. Innovation and faster process changes seem to be the way forward. It is important for the entire industry to work together and create a revolution to keep up with everyone else as they make up for the final step in several of them.

Written by Jayashree in August 29, 2019
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How businesses cope with digital transformation, which is both necessary and demanding. Understand from all ends to bridge the gap.
Digital Transformation

The Impact Of Digital Transformation In Business

How businesses cope with digital transformation, which is both necessary and demanding.

Digital transformation has become synonymous with businesses in the recent past. The term has been used so much that the clear definition and implementation tend to become vaguer with each passing day as businesses use this to assert their presence in the respective markets. What are the best ways to ensure this implementation is as effective as it should be? Why has it become the need of the day? What impact does the digital transformation have on businesses today?

Role of Digital Transformation In Businesses

Digital transformation, simply put, is adopting digital processes as tools to achieve business goals. Though the process requires multi-layered planning, method, and execution, almost every business is at it today. It has become more of a cultural phenomenon in the business world rather than a mere strategy. Technology media company IDG has reported that out of 89% of the companies looking to adopt a digital-first strategy, only 44% of them have successfully implemented it. The fundamentals of digital transformation lie in how the business adapts to the ever-growing market and how the human resources focus on futuristic goals while the digital tools take care of the present. Such transformations also mean that the employees should adapt to the changing systems with time. Thus, they do not define what the organization does but how things are done.

Increasing Resilience With Digital Transformation

Continuous and adaptive growth implies that employees are ready to adapt to new situations better. With a flexible work process, organizations need not train the employees to adapt to any situation, leading to long-term success avoiding hasty short-term decisions. This eventually results in companies escaping the competency trap. Rigid frameworks are already in place to prevent sudden shake-ups or changes. Since most of the digital transformations are data-based, there is increased transparency, which means the unique strengths of the businesses are highlighted. The company’s priorities are sorted smoothly, demanding smart decision making from them. This eventually leads to better work structure, increased profit and professional development for the employees as they become technically sound with each process.

Keys To A Successful Digital Transformation

The following have been identified as some of the essentials to achieve the complicated digital transformation to have a more effective working inside any organization.

  • Insightful, tech-savvy leaders who understand the necessity and importance of digital transformation.
  • Easier ways to help employees to adapt to the technological changes within the organization.
  • Having more futuristic goals to engage the employees and empowering them to work in new ways.
  • Making this transformation a continuous process rather than a one-time wonder.
  • Frequent and right communication.

Transformations are complicated. Digital ones prove even tougher as they carry layers of complexity. Every business and every organization will demand a unique level of transformation. While the AI is already taking over the world, understanding from all ends to bridge the gap between traditional and digital methods proves crucial to changes. However, once the challenges become a matter of the past, the impact of digital transformation can be witnessed in terms of financial profit, almost error-free systems, less time consumption, fulfilling customer expectation and demands, etc. This is a never-ending process. Once an organization gets hold of adapting to the changes, there is no stopping them. As the popular saying goes, “Necessity is the mother of invention”. Innovation will become the best bet for businesses to stay ahead in this game in the future.

Written by Jayashree in July 11, 2019
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