How Technology can Change Business: from Startups to Innovations
Posted on Jun 30, 2019
Automation is considered to be a part of business. To be more precise, it’s a process which helps businesses to grow and develop. Some experts still believe that IT technologies can’t change business dramatically. Definitely, any industry is based on certain principles, and automated solutions either speed up or slow down their implementation. Has the construction business changed due to the use of new equipment and technologies? On the one hand, it has. Houses are built faster, and they have become safer and more comfortable. However, the building process itself – from laying the foundation to bricklaying – remains the same. Houses aren’t grown in special greenhouses, and nanorobots don’t build them. So what’s the point of IT for business?
IT as the main trend of our time
We live in the age of the rapid technology evolution, and this speed is merciless to those who stay in the old paradigm of business development. It relates to each industry and market and causes system changes inside of them. The more diverse and unstructured the market is, the more serious revolutions it will face in the next 5-10 years.
Automation is the core trend of our time. The main players strive for process automation in all the areas, from the service industry to education sector. Such platforms as YouDo and Skyeng which bring a client and service provider together are based on robotization. Thanks to AI and big data analysis, the platforms automate complicated intellectual processes. The platforms help structure the market and mitigate tensions between the client and service provider.
Perhaps more complicated expert issues will be solved in the same way very soon, for example, marketing or HR consulting. It’s safe to say that it’s already a reality, and there is some evidence. Prices are getting more transparent, a new class of specialists is being formed, and the result of launching new startups is becoming more predictable. This is the future which exists already today but is still sporadic.
Innovations and startups: what can change IT business?
According to the experts, it’s innovations that are the main reason for changes in the IT business. They let develop new fundamental solutions which are implemented in our daily life. Startups don’t really affect the IT business globally but with no doubt contribute to its development. As a rule, startups are created by specialists who actively use the existing IT solutions and enhance them. For example, Ark startup was built on the solution aiming to integrate the blockchain networks, which were previously not compatible. TrustToken developed an extremely flexible system that allows working with real assets, such as stocks, shares, patents, and real estate. All this influences the IT business, develops it, and opens new horizons for opportunities.
It is worth noting that usually large companies regulate the IT business. To achieve some changes, the communication between main players and startups should be set up. Startups need to know the restrictions in which large companies operate, while the market leaders should take into account the agility of startups. If this interaction is introduced, the speed of changes will be high.
The horizon of changes
A new ecosystem will be created around companies engaged in digitalization. It will be more attractive for investors, therefore, businesses should start thinking about it right now. Innovative technology solutions are likely to appear on the market, investments in already known technologies, such as IoT, will only increase.
Speaking of the main trends that influence business, first, IoT should be mentioned which is becoming necessary almost in any industry.
IoT solutions let businesses get valuable analytical information that is extremely necessary for the process of digitalization. Many similar technologies become smart, for instance, data storages based on software which is capable of searching and processing content in decentralized packages of structured and unstructured data for its further analyzing, formatting and indexing. For example, Hitachi Content Intelligence software allows extracting data and transferring it to working structures for further processing.
To implement such solutions, IT departments should interact more closely with operational business processes. It would let them focus on actual enterprise goals and determine the scope and direction of an IoT project together with top management.
The blockchain technology still has a great impact on business. It continues to evolve due to the active use of cryptocurrencies and blockchain implementation in the finance sector to solve industry-related issues. Blockchain-based solutions for internal processes regulation, such as KYC (Know Your Customer) and CIP (Customer Identification Program), working with client documentation, reporting, and much more, are going to be implemented in the finance sector this year.
Another big trend is digital transformation. It will lead to a higher speed of operation processing, reducing manual work, which requires increased costs. Companies will extract valuable information from big data and BI.
Machine learning and process automation contribute to the automation of routine operations. It will help move to digital economy to make sure that more time is spent on making decisions that are valuable to business instead of dealing with routine operations.
Are global changes coming soon?
Due to the gradual digitalization of processes, global economic changes are simply inevitable. But it takes time for the public to notice the changes and be happy with them. Innovations and startups are changing business incrementally, sometimes overcoming impediments and law restrictions. For example, blockchain could be more popular and world-spread if legislation systems of many countries were more flexible in terms of cutting-edge technologies.
The transition to digital technologies causes fears about data security. GDPR, a recent regulation in EU law that requires businesses to protect personal data, has become an impediment for blockchain development in Europe. Therefore, not all technological innovations can be applied in all areas. Business experts claim that an integrated system of legislation synchronization could be a way to implementing innovations into the business sector. For example, the introduction of Ministry of Technology could speed up the process of legislation adaption to fast modern technologies and tools. But there are still no such organizations in the world. Even developed countries face this problem when laws have to catch up with technologies.
Nevertheless, business is still developing. Already today, there is a transition to a model that encourages companies to develop their own program solutions and manage processes inside their company. If 20-25 years ago, it was popular to produce hardware, 10-15 – implement software, then now solutions grown within a company are getting more attention. Companies start investing in unique projects that have a world value. It lets them compete on the market not only today but also in decades when business will become fully digitalized.