The Unmissable Value of Data-Driven Digital Transformation
Digital transformation is the foundation of an effective, future-proof organization. Unlocking the greatest possible value of these digital business transformations will require companies to leverage the fundamental data opportunities that underpin a modern enterprise.
In little under a decade, the world’s most valuable companies have transformed from huge industrial or commodities players to those unlocking the fundamental value of data. Digital and data-driven companies now dominate the world’s most valuable companies list.
The US Big Five of Apple, Alphabet, Microsoft, Amazon, and Facebook are joined by Chinese giants Alibaba and Tencent amongst the most valuable publicly traded companies. Apple recently surpassed the US$2tril value mark, becoming only the second publicly listed company to surmount a US$2tril market cap. The only other such success is Saudi Arabian energy behemoth Aramco — the only non-digital company in the top eight most valuable companies globally.
It’s clear that data is now the undeniable king of enterprise value. In the wake of COVID-19, tech companies are positioned at the forefront of market value rebound for the world’s top 100 companies. Market valuations in the tech sector grew 28% from March to June according to analysis from PwC. New entrants to the list include e-commerce platforms Pinduoduo, Meituan Dianping, and Shopify, revealing the remarkable shift towards online shopping driving value in digital companies. But you don’t have to be a digital-first e-commerce company to unlock the value of data opportunities.
On a macro level, the sheer power of data to drive enterprise value is unmistakable. Equally important for individual companies is recognising the unmissable value of digital transformation to your business.
The business value of digital transformation
Digital transformation can sometimes feel like a sweeping, all-encompassing term. But ultimately any business transformation founded on digital or data-driven capabilities is embracing the fundamental concept of digital transformation. This isn’t a threat to radically disrupt your business, but the opportunity to adopt new technologies and capabilities that enable you to stay competitive while accessing new business opportunities.
Analysis by Deloitte Insights reveals those companies which deeply embed digital transformation evidence better performance on their peers across key financial metrics, including bottom line performance. Its comprehensive industry study reveals that the benefits of digital maturity are realized through improvements in efficiency, revenue growth, product or service quality, customer satisfaction, and employee engagement. Those are fundamental drivers of any successful business, clearly and demonstrably enabled by digital opportunity.
Cost savings are clearly one of the more convincing aspects of digital transformation. A study by the Hackett Group of financial industry players revealed that embracing digital transformation enabled a cost reduction of 42% in typical finance organizations, and up to 60% for those who embrace a leading world-class transformation.
The ability to unlock efficiency through data-driven decision making is critical. In a 2016 study of the global oil and gas industry, US-based industrial giant General Electric (GE) revealed that O&G organizations using a predictive data-based approach to operations experienced 36% less unplanned downtime, resulting in an average US$17mil in bottom line savings.
Telecommunications is another industry where the prevalence of data provides a clear opportunity to deliver business benefits through improved insight and enhanced efficiencies. Neural Technologies worked with a leading communication service provider in the EMEA region to provide clear data oversight and risk assessment for its customer base of over 30 million customers. By introducing Optimus data-driven fraud management solutions, we were able to increase fraud detection by 12%, reduce detection time by 27%, and increase collection amounts by an impressive 89%. These enhanced efficiencies and savings represent the clear benefits of data transformation for your business.
Digital transformation can be delivered in partnership
Neural Technologies’ portfolio of digital transformation products help enterprises unlock the value of data to create more efficient, effective business practices.
We recently completed work with a major Southeast Asian mobile data service company to integrate our Optimus Data Portal technology, providing a rapidly scalable framework to respond to changing data needs. This delivered a 50-80% reduction in hits to source, significantly reducing the time and cost of accessing and analyzing critical business data.
Transformation experts Boston Consulting Group champion the value of quick-wins as a catalyst to wider digital transformation. That’s why at Neural Technologies we work closely with clients to ensure a digital transformations strategy that is both fast-to-market, and delivers demonstrable return on investment.
Neural Technologies’ data-driven Optimus platform provides an accessible route to digital transformation that leverages over 30 years of market-leading experience. In a world of data-driven opportunities, transformation has never been more important to enterprise success.