Finance

Digital transformation – we have crossed a new frontier

Each epoch has had their own great minds, who have helped to develop and push forward the innovations and means of work. The constant development of course brought some impressive ideas as to how organize production, consumption, and distribution.

The mercantile empires brought in some new ways of piracy and smuggling, and thus gathering major resources stolen or taken from the newly discovered (for the Europeans) New World. And by the eighteenth century the history saw the beginning of institutionalized trading, and the rise of amazingly rich and influential (also politically) consortiums, with East globalization, as they had half of world’s trade in hands.

Later, during the Industrial Revolution, the world became fueled by oil and coal, and the magnates became the most influential figures in the world. Economies of mass production were developed, and in the first years of the twentieth century Henry Ford has done major work to define the new standards. His assembly lines not only revolutionized the manufacturing, but also were the beginning of mass production and mass consumption. Again, alongside globalization, both of these are something that seem to be running the world nowadays.

Aldous Huxley, in his all-time-classic book, Brave New World, described his fictional (or maybe alternative) timeline as AF (After Ford), which is the synonym of modern era. However, as the time went on by, Asia also started to develop their brilliant ideas. For example, Toyota adopted their Total Quality Management, which caused them to dominate the car manufacturing market, and set an example for Western manufacturers.

The current times also have their own visionaries, as there is no better way to describe individuals who were able to turn their ideas into international, multi-billion dollars empires. How else could we call the likes of Jeff Bezos, Bill Gates, Elon Musk and others? The modern times rely heavily on network and AI, and that is why most of those hyper-successful companies have been pioneering technological advancements. Big Tech marks a new era, and most of the companies are currently looking for ways to enhance their services with the use of novelties. They are also trying to match trends and make a shift to the digital world, just like the businesses in the past embraced Fordism or globalization.

Amazon case study

Tony Moroney, who works at Beta Digital, spoke to Disruption Banking about how the financial institutions could stand up to the challenge of overcoming disruptions and staying relevant by adapting their services and processes. He analyses the case of Amazon and points out why Jeff Bezos succeeded.

Amazon originated as a really modest online bookshop, and eventually, step by step, evolved into the international marketplace. Jeff Bezos actually had a brilliant idea, that he did not have to sell stuff that he owned. This simple but amazing concept gave him an opportunity to become the head of an impressive empire. It appeared that his concept was exactly what the customers needed.

This model completely revolutionized what we’ve known for years. The traditional concept revolves around constant thinking about how to get customers who would buy your services or products. Instead, Amazon focused on developing more and more solutions that enabled people to do their thing. This is why customers are not treated as ones here.

Amazon is way more customer-centric than any traditional financial institution out there. And they are using detailed data analysis to fully understand their customers’ needs and expectations. That is exactly why Amazon services are being constantly facilitated – so that their customers can use their products without problems and flawlessly. This teaches us a lot about the key to success in today’s market. Customers need to feel as if they are the pivotal point of service. Not the other way around.

For more brilliant pieces, and a great analysis of this topic by Curran Snell, use the link: https://disruptionbanking.com/2021/08/10/the-new-frontier-of-digital-transformation/.