Adopting new technologies is a must for modern business. Industries have been on the journey for improving their operations during the last 30 years. Of course, innovation in technologies has brought about significant impacts upon the industries. As a result, new business models appear as a response to the digital revolution. Adopting the new models is in part a prerequisite to survive and thrive in the digital era.
New Business Models in the Digital Era
In the digital era, business advance means more than simply efficiency. Instead, adopting digitization in business means using it to drive more growth. Technology moves the business faster. Many aspects require the industries to adopt new business models, including:
Shift in Focus
Digitization in all sectors of industry leads to the shift in focus from working more efficiently to working differently. Cost-cutting and efficiency are still relevant of course, but they have become a standard in business rather than an objective. Today, ecosystem of manufacturing industry has been shifting to a data-driven and cloud-centered one.
The same principle applies for supply chain system. Manufacturers need to shift their focus from linear model of supply to a networked, connected model. In the past, the businesses simply produced goods and distributed them through a given supply chain. Now, the supply chain has shifted to a cloud-based system, which can be accessed by everyone in the network.
The Power of People
Much of the digitization process depends upon human resources. Adoption of new technology is the result of changing customers’ habits. Harnessing new technology aims at enhancing customer experience and streamlining the procedures. People power requires the manufacturers to shift their focus from productivity gains to skill-based models.
In the new models, technology is expected to improve workers’ capabilities. Machines should be able to help human deliver beyond-expectation outcomes. In other words, machine cannot replace roles of human. Instead, machine serves as tools that people can use to promote outcome achievements.
Combination of data and mobile technology brings real impact upon the birth of new business models for manufacturers. This combination allows the businesses to get relevant information at the right time. Such information allows them to make decision and to solve problems in a smarter and faster way.
Mobile technology allows the business owners to get informed of anything that happens throughout the organization. Now, the business can easily make data-driven decision making.
Steps to Adopt the New Business Models
This next question is how to adopt the new business models based upon the digital innovation? Whatever your business is, the following are some steps that every business can take:
- Take strategic steps to move your data onto the cloud-based system. Make sure to benefit from the low-cost infrastructure choice.
- Establish and promote a learning organization, in which both employers and employees keep learning and improving;
- Focus more on customers rather than on cost efficiency. Make sure to take more efforts to improve customer experience.
- Use the data to make strategic decisions on how to improve workers’ productivity.
- Benefit from the mobile technology to make your tasks easier.
So, this is the time for action. Digitization is here to change the business platforms. Adopting the new business models is one of the ways to get in line with the competitors and eventually to beat them.