Business intelligence and Digital Revolution 4.0 is a technology-driven process for interpreting, analyzing data, and preparing actionable information to make data-driven decisions. BI comprises technology and strategy utilized by companies for data analysis of business information. It also handles a vast amount of organized and unstructured data to distinguish, identify, create, and develop new strategic business opportunities.
It leverages software to transform data into actionable insights that inform an organization’s business decisions. It enables access and analysis of data sets.
It shows analytical findings in dashboards, reports, maps, charts, and graphs to give users a complete intelligence about the business.
Business Intelligence (BI) helps organizations handle massive data across internal and external stakeholders. The data about employees, transactions, processes, industry, competitors, etc. can be turned into information with the business intelligence solution. BI solutions process the data and convert them into verified statistical information, e.g., analytical reports, graphs, charts, dashboards with the business context.
The Digital Revolution 4.0 initiative places the utmost importance on bringing about a digital revolution worldwide, powered by new-age technologies. These disruptive technologies will include Big Data, Artificial Intelligence (AI), the Internet of Things (IoT), cloud computing, and Virtual Reality (VR) & Augmented Reality (AR), to name a few.
According to Industry Minister Airlangga Hartarto
“In the fourth generation of the Industrial Revolution, it becomes a major leap forward for the industrial sector, where information and communication technology is fully utilized. Not only in the production process but also across the industry value chain, creating new business models on a digital basis to achieve higher efficiency and better product quality.”
Digital Revolution: What does Digital transformation mean globally?
The world we live in today – the digital age – is the playground for the ongoing Fourth Industrial Revolution. Unlike the previous Industrial Revolutions, IR 4.0 aims to improve and transform every aspect of our daily life through digital intervention. From creating new business models and optimizing value chains to transforming how customers interact with brands and enhancing customer experiences, digital technologies are changing everything around us.
As per the latest projections, this initiative will create around 7-19 million jobs within 12 years while adding 1-2% to the GDP annually and boosting average annual growth rates between 6-7%. In fact, as per recent findings, companies that have adopted and implemented IR 4.0 technologies witnessed a 40% increase in operational efficiency and productivity.
The four core disruptive technologies drive the Digital Revolution and mobile app development include:
- Mobile Internet – Smartphones and mobiles are no longer merely a tech trend, they are necessities. Mobile devices generate over 60% of online traffic globally. People worldwide use mobile devices as the primary means to access the Internet and take advantage of the numerous perks of the digital world (online shopping, video streaming, music streaming, etc.).
- Cloud Tech – Cloud technology has radicalized the delivery of computing services (databases, servers, storage, networking, business analytics, and business intelligence) at scale. Cloud computing facilitates innovation while optimizing the use of business resources.
- Internet of Things (IoT) – Thanks to affordable Internet connections, increased Internet penetration, and easy access to smart sensors and digital devices is spurring the growth of remotely controlled and connected devices globally. While in 2018, the number of connected devicesstood at 22 billion, by 2030, this number will increase to 50 billion IoT devices.
Big Data Analytics– The world generates a whopping 2.5 quintillion bytes of data each day! Increased Internet accessibility, smartphone adoption, usage of IoT devices, and implementation of smart business models are perhaps the biggest drivers of Big Data. Businesses need this data to innovate new products/services, optimize business productivity, streamline supply chains, personalize customer experiences, and create value for customers.
Although gradual, Several industries have begun to adopt and implement these new-age technologies to build a strong foundation for increasing productivity gains, optimizing labor productivity, attracting future investments, and spurring economic growth.
The Making 4.0 strategyaims to scale up industry net export rate to 10%, double the labor productivity rate, and allocate 2% of GDP to R&D and technology innovation, which is almost seven times higher than the present allocation. The government has formulated ten priority pillars to accomplish this goal:
- Redesign the industrial zone
- Reform the flow of materials
- Build an innovation ecosystem
- Attract foreign direct investment
- Improve sustainability standards
- Improve the quality of human resources
- Strengthen the national digital infrastructure
- Empower Micro Small and Medium Enterprises
- Implement incentives for technology investment
How should companies gear up for the Digital Revolution?
The biggest challenge and obstacles we face before complete factory integration is standardisation and security protocols within Industry 4.0. It is estimated that only 37% of companies protect their network infrastructure by encryption or authentication software.
Naturally, to materialize the vision of the Digital Revolution, companies across all sectors must lead the way for digital transformation by leveraging Big Data Analytics, Cybersecurity, AI,mobile app development services, and IoT, and adopt customer-centric business models to deliver multi-channel customer experiences.
Companies, startups, and enterprises should focus on driving the Digital Revolution globally by focusing on three key areas:
1. Identifying the new value frontiers
Digitization mandates that companies re-evaluate their business models and operations to identify the new opportunities that hold immense potential. Companies must understand the nuances of the latest market/customer trends and customer behavior/expectations to unlock the real value from new frontiers and evaluate whether they are risky or beneficial. For instance, businesses can use IoT tech to identify opportunities in existing value chains based on highly accurate data. Again, sensors powered by IoT and Big Data Analytics can boost the efficiency of supply chain operations.
2. Creating value in the core business infrastructure
The next step is to figure out unique ways to use digital technologies and tools to improve customer service. While businesses must adopt the multi-channel approach to communicate with their target audience, they must also understand the prospect or customer’s thought process in each step of their buyer’s journey. This is where Big Data Analytics and tracking tools can help companies gain insights about their target customers. By unlocking customer data insights, businesses can customize their solutions and marketing campaigns for each buyer persona.
3. Establish the foundation for digital capabilities
The Digital Revolution can only be a success if companies invest their time and money in creating the right task force that can handle new-age technologies. Modern technologies like Big Data, AI, ML, Cloud, and IoT require niche skills and domain knowledge. Thus, companies must improve their human resource pool through up skilling and training programs. The goal is to instill a digital mindset in professionals that encourages cross-functional collaboration, flattens hierarchies, and builds ecosystems to foster new ideas. It is also pivotal to develop an integrated IT infrastructure that can seamlessly connect both humans and machines.
As Industries and various companies gear up for the Fourth Industrial Revolution, the digital transformation will require enhanced collaboration among multiple stakeholders, from the country’s academic wing to government institutions and private companies. To spearhead the Digital Revolution, companies must take a customer-oriented approach, focus on agility, use Big Data to drive real-time decisions, and strengthen the IT/Cybersecurity infrastructure.
This is precisely how digital transformation can make one of the biggest economies by 2030.