Trends in Digital Transformation

Cloud Computing

Cloud computing is defined as the delivery of the various services related to computing, such as storage, networking, servers, intelligence, etc., to ensure faster innovation, flexibility in the resources and attaining economies of scale. As it can be seen in the figure the use of cloud computing.

Figure 1 Cloud Computing

(Source: Patil. & BasuMallick. 2022 pp 1)

This can be used by industries such as automotive, financial, retail, food processing, real estate, etc. It is used by the Weston Group, which is beneficial for them to improve their services to the customers (Weston Group., 2022 pp 1). They will use it to keep track of their inventory with the help of cloud computing, which will support them while making further orders for the products. As it will show them the quantity available in their warehouse for every product they have (Ali, Wood-Harper, & Mohamad, 2018 pp 14(4).

It benefits them to reduce the cost as the inventories are managed on the online mode. This also ensures that the margin on the product can be lowered as the cost of inventory management is reduced. It is beneficial for the retail business as it attracts consumers and results in consumer growth. Also, it supports their management mainly in the supply chain (Mocquin. 2022 pp 1). The ethical and social issue faced by the companies in cloud computing is the data privacy and security as the data is stored in the cloud, which provides them access from anywhere. It is mainly because sharing the confidential information on the internet is the biggest risk faced by them.

There are various companies that provide the services of cloud computing, and their approximate average cost will be $400, and the approximate return on investment can be 30%. The below figure shows the pyramid for enterprise design for every level.

Hardware – These are the tangible components needed to support the implementation of trends.

Software – This is known as the set of instructions, programs, etc. support the operation of the computer.

Application – It is the computer software used for performing specific functions.

Data Collected – This is the data which is used in the technology to support the operations of the business.

Dashboards – This provides the information needed at-a-glance to the user of the technology.

Figure 2 Enterprise Pyramid

(Source: Author)

Decision-making which can be made with the use of the above pyramid is when the company decides which type of hardware, software and application will be implemented in the business. They will also decide what type of data will be uploaded to the cloud computing server. In this, they will also decide on their KPI's which can be shown on the dashboard to support the operations of the business.

The porter’s value chain is known as the framework used for the development of an analytical structure that will show the process of the company. Cloud Computing will help the primary activities to bring effectiveness in their operations and store the data on the online mode (Kumar, 2019 pp 1(2). It will guide the support activities by providing them with the necessary guidance. It will eventually reduce the margin on the products and improve profitability for the businesses.

Artificial Intelligence

Artificial Intelligence (AI) is the trend which provides the intelligence of the humans to the machine to bring ease of work for the company and improve customer satisfaction.

Figure 3 Artificial Intelligence

(Source: Skrypnyk. 2022 pp1)

This is usually used by the industries such as healthcare, retail, banking, telecommunication, etc. It is used by the company such as Bell Canada (Bell Canada., 2022 pp 1). This is used by them to look for particular patterns in their big data which helps them to predict the value of their consumers and provide recommendations for the purchases. It will bring value to their smart decision-making and will ensure that the margins can be improved on the services provided to their customers. This benefit in improving the experience of customers and will retain them in the business for improving the profitability. The ethical and social issues related to the AI are that it reduces the jobs for humans, which affects their ability to cater to their family's needs (Liul. 2022 pp 1). The ethical issue faced with the trend is that the decision taken by the AI tools are not always considered to be beneficial for the organization. There are various companies providing their services in AI whose average cost is approx. $6000 to $300000 depends on the solution businesses seek by implementing the same, and the expected approximate ROI can be 20%.

Hardware is known as the tangible component needed to support the implementation of trends.Software is known as the set of instructions, programs, etc. support the operation of the computer. Application is the computer software used for performing specific functions. Data Collected is the data which is used in the technology to support the operations of the business. Dashboards provide the information needed at-a-glance to the user of the technology. The below figure shows the Enterprise Design at every level, which supports the operations of the businesses.

Figure 4 Enterprise Pyramid

(Source: Author)

AI Decision making is beneficial for the business as it improves their services to the consumers and ensures they are retained in the company. In Porter’s value chain, it helps the primary activities of the business to ease their work by providing them assistance in bringing efficiency to work (Sestino & De Mauro, 2022 pp 34(1). This guides the support activities by providing them with the relevant insights and data necessary for their operations. This will slightly increase the margins, but the customer will be satisfied with the services of the company.

Digital Banking

Digital banking is a trend that is defined as the type of banking operations done on a digital platform and eliminates the paperwork. It is adopted by the banking industries, and the company that uses the trend Royal Bank of Canada will be using the trend in their operations, and it is implemented with the help of software that creates an interface for the customers (Royal Bank., 2022 pp 1). It is used by the banks such that the transactions are made with the online platform which eases their operations for example, when they have to clear a cheque of different bank. This improves the value of the bank as the customers get the advantage of operating their bank from anywhere. It also increases the margin on the services as they charge extra fees for the services. Digital banking improves the customer's growth as the services attract them to banks. The ethical and social issue is that it can be hacked, which is not safe for people to use (Revathi, P. 2019 pp 7(12). The ethical issues concerned with the digital banking can also be the mis-selling of the securities due to hacked account. For digital banking, banks spend approximately $200,000 Million to ensure the data of their customers are kept safe, and the transaction can be made without any problem. This brings an approximate 10% return on investment for the banks, which is in their favour.

Enterprise Design has 5-level hardware, software, application, data collected and dashboards. These support the operations of the business and help them to effectively implement the digital banking technology in their bank, which will help them to improve their services which are important for them as they might lose their customers. The below figure shows the pyramid of enterprise design for the Royal Bank of Canada.

Figure 6 Enterprise Pyramid

(Source: Author)

The decision-making for digital banking is taken by the organization to ensure they support the customers as due to the Pandemic; the online transaction has increased (CNW Group., 2022 pp 1). These digital banking technologies reduce the paperwork in the primary activities of porter's value chain and help them to market the product to increase its use. Digital banking technology increases the efforts for the support activities to ensure payment mode is safe for the customers to support them in taking their services again. This impacts the margins to increase as the extra charge is charged from the customers to support the activities

 

References

Ali, M. B., Wood-Harper, T., & Mohamad, M. (2018). Benefits and challenges of cloud computing adoption and usage in higher education: A systematic literature review. International Journal of Enterprise Information Systems (IJEIS), 14(4), 64-77. https://nrl.northumbria.ac.uk/id/eprint/42546/1/Benefits_Challenges_of_Educational_Cloud.pdf

Bell Canada., (2022). About Bell Canada. [Online] Available Through <https://support.bell.ca/AboutBell#INT=OTH_hmpg_TXT_footer_about-bell> [Accessed on 29^th July 2022]

CNW Group., (2022). Surging use of digital banking accelerates during the pandemic: CBA survey. [Online] Available Through <https://www.newswire.ca/news-releases/surging-use-of-digital-banking-accelerates-during-the-pandemic-cba-survey-806716549.html> [Accessed on 29^th July 2022]

Kumar, G. (2019). A review on data protection of cloud computing security, benefits, risks and suggestions. PDF). United International Journal for Research & Technology, 1(2), 26. https://uijrt.com/articles/v1/i2/UIJRTV1I20004.pdf

Liul. M., (2022). AI in Telecommunications: Top Challenges and Solutions. [Online] Available Through <https://integrio.net/blog/ai-in-telecommunications> [Accessed on 29^th July 2022]

London, T., & Jäger, U. (2019). Cocreating with the base of the pyramid. Stanford Social Innovation Review, 16(3), 40-47.

Mocquin. M. (2022). A remedy to retail’s supply chain woes is in the Cloud. [Online] Available Through <https://www.itworldcanada.com/blog/a-remedy-to-retails-supply-chain-woes-is-in-the-cloud/477630>[Accessed on 29^th July 2022]

Mortazavi, S., Laine, I., Quarshie, A., Väätänen, J. & Gupta, S., (2020). Multinational enterprise and inclusive innovation at the bottom of the pyramid: a systematic literature review. International Business and Emerging Economy Firms, pp.19-47.

Musona, J., Puumalainen, K., Sjögrén, H. & Vuorio, A., (2021). Sustainable entrepreneurship at the bottom of the pyramid: An identity-based perspective. Sustainability, 13(2), p.812.

Patil. P & BasuMallick. C., (2022). What Is Cloud Computing? Definition, Benefits, Types, and Trends. [Online] Available Through <https://www.spiceworks.com/tech/cloud/articles/what-is-cloud-computing/> [Accessed on 30^th July 2022]

Revathi, P. (2019). Digital banking challenges and opportunities in India. EPRA International Journal of Economic and Business Review, 7(12), 20-23. https://www.researchgate.net/profile/Revathi-p/publication/338139871_DIGITAL_BANKING_CHALLENGES_AND_OPPORTUNITIES_IN_INDIA/links/5e01cfcd299bf10bc37436bb/DIGITAL-BANKING-CHALLENGES-AND-OPPORTUNITIES-IN-INDIA.pdf

Royal Bank., (2022). Online Banking. [Online] Available Through <https://www.rbcroyalbank.com/ways-to-bank/online-banking/index.html> [Accessed on 29^th July 2022]

Sestino, A., & De Mauro, A. (2022). Leveraging artificial intelligence in business: Implications, applications and methods. Technology Analysis & Strategic Management, 34(1), 16-29. https://www.researchgate.net/profile/Andrea-De-Mauro-2/publication/349110234_Leveraging_Artificial_Intelligence_in_Business_Implications_Applications_and_Methods/links/602275744585158939907f66/Leveraging-Artificial-Intelligence-in-Business-Implications-Applications-and-Methods.pdf

Skrypnyk. Y., (2022). AI for Telecom: Automatic, Adaptive, Autonomous [Online] Available Through < https://softengi.com/blog/ai-is-the-telecom-industry-trend-automatic-adaptive-autonomous/> [Accessed on 30^th July 2022]

Weston Group., (2022). About George Weston Limited. [Online] Available Through <https://www.weston.ca/en/Our-Company.aspx> [Accessed on 29^th July 2022]

Wright. G., (2021). The pandemic caused bank clients worldwide to shift to online usage—a boon to banks that were prepared. [Online] Available Through < https://www.gfmag.com/magazine/december-2021/worlds-best-digital-banks-2021-round-2> [Accessed on 30^th July 2022]