Digital transformation has taken a drastic change for the past few years, thanks to technological innovations continuously coming into existence. The shift has been attributed to many reasons, although some businesses only run digitals sections instead of embracing a full transformation to the organization.
However, the conversion is no longer by choice, but an essential aspect of its survival. Every company now needs elevated operational skills to withstand the increasing completion in the market. Additionally, with the sudden outbreak of Covid-19, organizations now realize the importance of operating on digitalized market places, with few face-to-face sales.
This drives companies to reinstall technological innovations and check on how to maximize their sales while surviving the competition created in the internet payment options. Therefore, the question is, how can a company maintain a successful supply chain without employing digital transformation?
What Is Speeding Up Digital Transformation?
Over the decades, businesses have been seen using innovative means in transactions. This can be attributed to the rise of digital technology that is experienced in everyday life. Moreover, the digital transformation has been supercharged by the following factors;
- The Internet of Things: The connectivity between organizations and consumers.
- Big Data: There have been increased demands for data by many entrepreneurs, which reflect the growth of an endless amount of big data collected, which speeds up the digital innovations.
- The collaboration between businesses, people, and all aspects of the business environment induces more transformation ideas.
- Growth in business platforms such as Uber and Airbnb, which paves ways for advanced technical applications.
Blockchain And Digital Transformation
As the companies continue to induce new digital initiatives to expand or build efficient operations and revenue growth, the technical transformation is increasingly penetrating the market. This involves the emergence of blockchain and artificial intelligence, which supercharges digital transformation and creates customer awareness.
In the modern market, consumers are more connected and knowledgeable than ever. Blockchain has taken the financial sector by a storm, with individuals, organizations, and even governments shifting to decentralized transactions for maximum revenues.
This transformation is significantly seen in Blockchain Use Cases like settlement payments, smart contracts, supply chain tracking, and internet of things, identity management, data management, and health care. Moreover, business experts predict that in a few years to come, blockchain will have a significant impact on digital transformation in the following ways;
It Creates Trust in Digital Transactions
Before the introduction of crypto trading, businesses used traditional means of transaction and stored their data centrally. Not everyone in the chain could access the information. This limited some traders as they lacked full confidence with other partners and the security of their assets.
However, blockchain changed the form of transaction from centralized to decentralized trade. Every transaction is now recorded in a blockchain or a public ledger where everyone has access to the network. The transaction is also verified using the proof-of-work method creating confidence for all business partners.
Does this supercharge digital transformation? Yes. Decentralized transactions create a high level of trust in peer-to-peer transactions without a central system’s need to control the business. It also builds trust and security for consumers and business partners in the vast world of digital connectivity.
Simplifies the Supply Chain Management
Every company needs a working and flexible supply chain to maximize its profits and reduced manufacturing costs. Whenever a supply chain is complicated, a company is likely to spend more time and dollars trying to win their consumers and suppliers’ trust. Here is why every company will need to introduce the new technical strategies to simplify its supply chain.
Thanks to the digital transformations, business and customers are now connected in a small circle no matter the distance. With blockchain in place, companies currently operate on a transparent ground, with consumers able to track the production process from the raw materials’ procurement to the distribution of the final product. This is further simplified by the blockchain’s ability to record every transaction in the ledger, and customers can now access the process at a lower cost.
When we talk about blockchain supercharging connectivity, we refer to the Internet of Things. It is a developed world, and you are likely to meet a lot of improvements in how companies communicate and receive data. With enhanced connectivity, companies have improved machine-to-machine communication, industrial production, and other network services.
However, the increased machine-to-machine connection comes with risks to a business; thus, they need a safe way of validating information and prevent fraud. That is when blockchain comes in handy. Blockchain offers a safe and transparent operation through its proof of work method. Every information laid in the system is now validated and verified to ensure it is risk-free to the business. This is a way of supercharging digital transformation since companies can connect quickly and safely.
Acts as A Financial Substitute
Financial innovation plays a significant role in any company’s success. For a company to realize digital transformation, it must start with how it handles its finances. This is why a blockchain is an essential tool in a business transformation. Why? From its conception, significant cryptocurrencies such as Bitcoin and Ethereum are attributed to the robust blockchain.
Bitcoin and Ethereum are also substantial financial innovations of all time. But how can they succeed in overturning the traditional financial transaction with a stable blockchain? This means that blockchain can manage numerous processes using the distributed ledger technology. As a fiat money substitute, blockchain and cryptocurrencies are now used as a payment mode for end-to-end transactions.
Simplifies Smart Contracts
Smart contracts are automated and computerized programs used by companies to carry out the terms of an agreement. They help businesses to bypass stiff regulations and lower the transaction costs. Although they have been in existence for quite some time, businesses need a central IT system that offers security to its data and ensures compliance with the contract terms.
Such a structure includes blockchain. With blockchain and smart contracts on the same page, there is a secure information storage and modification. Blockchain also ensures that smart contracts are established based on advance agreements and transparency. With this idea, the business can realize the digital transformation in a short time.
The Bottom Line
Since cryptocurrency evolution, there have been many success stories associated with the blockchain, with every business striving to induce the idea in its transactions. This brings us to one conclusion; blockchain is here to stay. Therefore, many companies are using financial, technological development to speed up their digital transformation.