What is Digital Transformation?
Digital transformations are the changes and radical rethinking of how organisations use technology, system processes, and people to change business performance. Such changes can often be sweeping, and are usually undertaken to pursue new business models, new revenue streams, changes in customer expectations, or applying new technology such as blockchain technology which underpins the digital future. Digital transformation is fundamentally changing the way we deliver value to customers and blockchain is known as the age of the internet of value.
The COVID pandemic has without a doubt sped up the use of digital technologies for many businesses and increased the demand for digital payments, adjusting to the world of digital transformation is imperative for all business from small to larger enterprises. Direct digital transformation (DX) investment are still growing at a compound annual growth rate (CAGR) of 15.5% from 2020 to 2023 and is expected to approach $6.8 trillion as companies build on existing strategies and investments, becoming digital-at-scale future enterprises according to data research published by ICD publish in late Oct 2020. ICD predicts that by 2021, at least 30% of organizations will fast track innovation into their business models to future proof their business. The question is are people upskilling themselves in innovation to future proof their careers?
At present, the following are driving digital transformation:
- Blockchain technology
- Artificial intelligence
- Internet of Things (IoT)
- Robotic Process Automation (RPA)
- Cloud technology
- Other technologies (such as Data COEs, EPM Platforms)
Many business leaders are unclear on what digital transformation means for their business and how they can start to create a strategic plan for implementing technologies to their organizations. Leaders need to understand what steps they need to take in transforming their business to adapt to the world of technology. Do they need to remove jobs while creating new roles to create a framework for adding value through digital technology, what specific steps do they need to take to achieve this transformation and should they hire a consultant to assist them through this process?
HOW DOES BLOCKCHAIN FIT INTO THE DIGITAL FUTURE?
Initially, the hype of blockchain as a secure, impenetrable, decentralised, and distributed ledger focused only on cryptocurrencies and financial services. However, blockchains have many potential applications that include supply chain monitoring, title registry, identity verification, media distribution, manufacturing, healthcare, government, and student registry records. For many large companies, it means a low-cost data file storage system that is immune to hacking.
At present, financial services make the most appealing argument towards blockchain. This is because the technology has proven its security, efficiency, and data validity when it comes to the handling, transaction, and data storage of financial ledgers. Business with robust strategies for adding value to their customers through digital technology often has a huge advantage over their competition. Blockchain can not only provide complete transparency throughout the supply chain but also create a competitive edge by creating value chains. The IDC blockchain prediction by 2021 30% of manufacturers and global retailers will have built digital trust through blockchain applications by creating interoperability amongst supply chains.
5 ways blockchain can impact digital transformation
Digital identity: Blockchain technology can simplify the KYC (know your customer) process that banks and other financial institutions must undergo when doing business with individuals and companies. Due to a long history of privacy and online financial cybercrimes, blockchain is undoubtedly needed as a new financial system.
Banks: Banking is still the primary global system when it comes to financial services and the issuing of loans. A distributed ledger technology can revolutionise the banking system (not replace banking, as many people wrongly conclude) by securing banking processes and also underpinning and utilising cryptocurrencies for transactions. Blockchain can cut all transaction and negotiation time for loans and transaction by more than half. Ledger technology also ensures the safe validity of all financial transactions.
Healthcare: Storing of peoples health data is becoming a growing concern as people understand that all of their data is stored on centralized files be accessed by many or hacked by anyone. Another concern is a counterfeit medication, blockchain can reduce this by implementing supply chain management protocols for the provenance of the medication to be traced.
Government voting: The traditional voting process is outdated and we hear of voter corruption all the time. Once a vote has been added to the ledger it cannot be changed or erased. Blockchain application can allow for voters to easily vote online in a safe, secure and reliable way.
Supply Chain Management: By tracing all the steps of the supply chain in real-time creating a value chain of transparency. The demand for the providence of goods is increasing to reduce fraud, offer quality assurance, provide cost savings, decrease theft and monitor performance. Blockchains can use smart contracts in supply chains increasing efficiency, agility and innovation.
In short, the main focus of blockchain for the above and the digital future, in general, are safety, security, validity, and verifiability that are all beyond alterations and hacking. The problem of digital transformation using blockchain, however, is not so much the technology itself, but in the number of professionals capable of blockchain technology application. We are going through a transformation which also referred to as the 4th industrial revolution, jobs are being eliminated by technology and the individuals that are taking the time to educate themselves are the ones who are future-proofing their careers.
This is where Blockchain Collective can help you upskill yourself for jobs of the future. Blockchain Collective is an educational body working with Registered Training Organisations (RTOs) and Universities to deliver a benchmark standard of education that empowers professionals and students with the necessary skills for a future in blockchain technology. We offer the Advanced Diploma of Applied Blockchain 10747NAT is the first-ever in Australia, which focuses on providing you with the skills for becoming a blockchain strategist or consultant. In addition, we have the Diploma of Applied Blockchain 10849NAT, designed to equip people willing to gain knowledge and experience in applying blockchain technology in management or operational roles within organizations.