Digital transformation is the process of using digital technology to transform business operations, and it has been a trend for the past few years. The process of digital transformation can be broken down into three phases:
1) The first phase is to identify the business needs and what are the goals that need to be met.
2) The second phase is to identify how technology can help meet these needs and goals.
3) The third phase is to execute the plan by implementing new technologies and processes.
Digital transformation has led to automation and automation in industries have made everything affordable. Automation is the name given to the system that is made to reduce human dependence or completely eliminate it to function. Some of the significant examples of automation making everything affordable are:
Automobile industry has replaced most manual functioning with automatic transmission systems making life easier and better.
Power backup devices, such as UPS, generators, etc are perfect examples of automation systems where we make use of the stored energy whenever there is a disconnection with the energy and the system charges itself automatically once the energy/power is restored.
Medical devices, such as ventilators work on automation systems ensuring that sensors tell whenever there is a drop in for example a patient’s oxygen level. This system saves the cost, time and energy which would be dedicated by more than one medical staff.
Throughout the world, especially America, a lot of agricultural labor work has replaced humans with robots.
Such prospects in automation will drive automation in services, which will further lead to access of premium services at lower rates to all.
The digital transformation has been a major force in curtailing inflation. The internet and digitization have changed the way we live, work, and consume. This transformation started with the introduction of e-commerce and has continued to grow exponentially with the advent of social media, smartphones, wearable tech, AI assistants and more. Inflation is the rate at which the price of goods and services is rising. It’s a natural phenomenon that’s typically caused by an increase in the money supply. The best way to curb inflation is by digitizing assets.
Digital transformation has given rise to the ‘big data’ and ‘data analytics’ technology especially in the banking and financial systems and industries. Big data is generally referred to very large structures and unstructured data sets containing tens of thousands of observations on bank customers, users of online payment platforms, holders of insurance policies, etc. In addition, textual data can also be digitized and made available for the computer-aided analysis of content. For example, digitization of documents continuing the latest financial regulations to incorporate them into the compliance routines, newspaper articles to aid in the search for indicators of economic uncertainty and resorts by the investment banks, which may show market sentiment giving significant information for the regulators.
Thus, digitization has saved the cost of researching data and analyzing it in the banking and financial sector to a great extent with the aid of big data technology. Scholars also predict that the future of traditional banking is digital because payment procedures through traditional mediums will be replaced by social mediums. CEOs of big corporate companies took the decision of redesigning their products and services to adjust to the new realities caused after the pandemic. It was mainly done to curtail the cost and so many companies are still continuing with the decisions to counter inflation. One of the industrial technology companies redeployed more than 50% of a single unit’s engineering capacity to rapidly redesign products in order to use the semiconductors available in the market.
Automotive manufacturers facing semiconductor shortages de-featured products to maintain production and sales in the face of these shortages. Overall, global supply chains are overburdened and disrupted resulting in congested ports but the bottlenecks are enabling acceleration of technology adoption across the supply chain industry. This will prove to be efficient in curtailing global inflation.
In conclusion Digital Transformation is a strategic process that has been adopted by many companies to stay competitive. Digital transformation has been adopted by many companies to stay competitive. There are various use cases of digital transformation in curtailing inflation, such as:
Using Big Data for predictive analytics to forecast trends and make better decisions.
Leveraging artificial intelligence and machine learning for decision making.
Building a data driven culture and environment for faster decision making.