By 2020, it is estimated that algorithms will have altered the behaviour of workers globally, providing the heavy-lifting for memory recall and crucial business intelligence and decisions. And by 2022, IoT will save commercial and consumer users $1 trillion a year in maintenance, services and consumables.
The digital transformation is well underway, celebrating successes among forward-thinking, strategically-adept businesses, while simultaneously undoing some of the world’s most famous brands.
In fact, according to McKinsey, 70 per cent of companies will fail at digital transformation as they struggle to overhaul business processes, create digital links with customers and redefine their business models. Flunk the strategy, skimp on ICT and that slaughter won’t abate any time soon.
Investment in ICT growing
Many businesses have underestimated the challenges of undertaking digital transformation. Companies such as The Co-operative Bank in the UK abandoned its digital transformation in 2013 having already invested $425 million on IT. A report into the program concluded it “was not set up to succeed” and “beset by destabilising changes to leadership, a lack of appropriate capability, poor coordination, over-complexity, underdeveloped plans in continual flux, and poor budgeting.”
But not all giants fall, some are successfully transforming to capture exciting new opportunities. In the US, Disney’s advances in ICT have, in just one part of its vast digital transformation, improved theme park labour scheduling accuracy by 20 per cent across 240,000 shifts each week. GE’s “Digital Twin” initiative offering a dynamic software model of a physical thing or system – initially rolled out on its aircraft engines – is now being developed for potentially billions of IoT devices, and has been highlighted as a leading technology trend for 2017 by Gartner.
Huawei, a leader in ICT solutions
Unsurprisingly, then, enterprises worldwide are partnering with established technology leaders to navigate challenging waters. Global ICT provider, Huawei currently works with a third of global Fortune 500 enterprises – including Volkswagen, GE, Sony and Intel – with more than 40 per cent of those among the top 100. Its success lies in simplifying the complexities of digital transformation through, in part, an open platform and ecosystem with a funding commitment of $1 billion for developers. This innovative pipeline allows ICT developers to innovate jointly with Huawei, and provides a “Developer Zone” where Huawei’s brand partners can engage with each other on their own ICT projects.
Collaboration of this nature is fueling breath-taking innovation, and we are starting to see ICT solutions that make a difference to people’s lives and enable enterprises to transform themselves for future success.
- In February this year, Huawei and Deutsche Post DHL announced a landmark digital transformation partnership harnessing the power of the Internet of Things. With spend on connected logistics expected to double by 2020, the collaboration will mine Huawei’s expertise within industrial IoT technologies to deliver innovations that provide greater efficiency, safety and customer service across the supply chain. The potential, untapped additional value of this is estimated to be $1.9 trillion by 2025.
- In the sporting arena, transforming one of Europe’s largest soccer stadiums – Signal Iduna Park in Dortmund, Germany – into a digital experience for more than 80,000 tech-savvy fans was a tricky match. But a Huawei Agile Stadium Solution delivered not only high-quality Wi-Fi coverage for all users, but also big data analytics, dynamic resource scheduling and security features to defend the network from outside intrusion.
- On China’s Singles’ Day in 2016, e-commerce giant Alibaba smashed all previous records with 175,000 orders every second in the first hour, amassing $17.8 billion worth of gross merchandise volume across 24 hours. That volume of traffic demands a cloud platform of both maximum stability and security. Since 2011, Huawei’s Anti-DDoS solution has fortified Alibaba against more than 100 DDoS attacks every day.
Digital transformation is a necessity
Think about the following numbers: a staggering 88 per cent of Fortune 500 companies from 1955 are now gone – today’s companies can either disappear into the analogue ether, or use new ICT to complete a digital transformation with tangible, offline, real-world success. Already, through better ICT learning and best practices, it’s increasingly clear which companies can transform and, crucially, which of them will lead in the new digital era.