Digitаl transformation continues to expand, and now companies are developing ecosystems and networks based on new technologies. This way has many obstacles, but companies must overcome them, and achieve Digital Transformation and Industry 4.0
The Fourth Industrial Revolution
, or Industry 4.0, means changes in manufacturing and business driven by the massive introduction of the Internet of Things, artificial intelligence, cloud technology, and machine learning. Industry 4.0 is changing people's working and living conditions, forcing leaders around the world to think about how to prepare their organizations for the advent of a new industrial era. Automated shops, warehouses and delivery, machine learning and smart algorithms, digital documents, and smart contracts are forcing the global economy to change rapidly.
Large companies now require their development team or reliable cloud services such as FCE to set up and protect data flow, monitor performance, analyze demand, predict customer behavior, plan logistics, and customize marketing. However, despite the definite social and economic potential of the Fourth Industrial Revolution, many companies delay the use of technology and get stuck in indecision.
Companies Cannot Remain the Same
Many companies try only to maintain their existing market state when investing in technological transformation, rather than seeking to gain new fields and grow. According to Deloitte's analysis
, the number of executives who prefer protection from radical change is almost twice as high as the number of executives choosing the path of radical market change (67 and 33%). The focus on continued progress and under-progressive strategies are delaying the global digital transformation and the adoption of the laws on Industry 4.0. Lawmaking measures for new technologies are not ready yet. The organizations cannot implement technologies and ready-to-use products due to the established legal barriers. The modernization of legislation lags far behind the development of digital technologies. This situation and isolation from radical changes create additional risks for the global economy.
It Is Difficult to Find the Best Direction
Cutting-edge companies create software and cloud services that can transform existing businesses and make them several times more efficient, reliable, and safer. For instance, FCE has developed a platform
that monitors and automatically analyzes processes in supply chains. Automation and traceability of delivery, storage in warehouses, store fullness, and full accountability of the company are available today for companies from different industries: food industry, pharma, luxury, restaurant business, and others. However, a wide range of possible technological solutions forces managers to slow down the beginning of a transformation. In the Deloitte study, a third of CEOs surveyed called a lack of strategic vision as a big challenge they face when adapting business approaches to the changing needs of their organizations. The difficulties associated with strategy are also an obstacle when it comes to advancing new technologies. CEOs have to choose from a lot of technological solutions, but only 29% of managers believe that their organizations have precise decision-making processes.
Lacking understanding of technology
Not all company directors believe that their staff have the knowledge they need for a technological leap: 55% of managers assumed there was a significant gap between the skills of their employees and the skills for the future of the company. At the same time, the educational system also does not keep up with technological transformations. 57% of managers believe that new workers are not receiving the necessary training under the existing education system. Both require resources and time, which is rapidly running out.
Support for Digital Transformation
In opposite to the obstacles to Digital Transformation
, many factors support and promote changes. A socially oriented approach to business.
Consumers prefer eco-friendly and socially oriented products and services more and more. Social initiatives contribute to the profitability of the company. Socially oriented businesses are easier to manage in new technologies and when traditional markets change. According to the study, CEOs of such companies invest more often in technology, are more willing to invest in staff training, and are more likely to think about the social consequences of introducing or delaying new technologies.
Data-based solutions will help CEOs choose the right set of technologies and improve their company's financial performance through innovation. New research, pilot projects, media coverage, and deep analytics will pave the way for the widespread adoption of new technologies and business models.
Leaders of radical change
These are executives with breakthrough strategies, supporting the complete transformation of the markets. These bold solutions achieve or even beat the planned results for the companies, showing other organizations how to manage the business during the Fourth Industrial Revolution effectively.
The lag of modern educational organizations from the pace of technology, economics, and society leads to the spread of self-learning, online courses, and other ways to improve skills and knowledge. Staff with high-quality skills and its constant development means the growth and transformation of the whole companies. Digitization is moving to a higher level
and creates a new integrated infrastructure that will unite all market participants - suppliers, manufacturers, buyers, insurance companies, banks, etc. Global change cannot be delayed for long, and leaders who understand market changes and choose the right strategies are already paving the way for Industry 4.0.