Digitisation and digital transformation have been floated in endless conversations about the future of commerce. However, while we tend to refer to these concepts in abstract terms, the hard realities of digital disruption are starting to hit businesses, writes KIM ANDERSEN.
ndustries are being up-ended almost overnight by the new business models made possible by the convergence of new realms of technology.
Those enterprises that are investing heavily in areas like automation, analytics, digitised processes, mobile customer channels, social marketing, are finding themselves in the position to attack slower-moving incumbents in other verticals. Take the financial services sector in South Africa for example. This vertical was traditionally protected by very high barriers to entry such as regulation, governance, licensing costs, scale economies and an oligopolistic structure.
But over the past few years the leading banks have seen the emergence of financial services products from retailers, cellular operators, medical aid providers, emerging payments or “FinTech” start-ups, and global tech giants like Apple and Facebook. These new competitors are arriving in the financial sector with fresh thinking, less legacy infrastructure and strong consumer brand perceptions. Cast in this light, digital transformation poses a startling risk for industry incumbent such as a large banking institution.
Dealing with disruption
Ironically, the only solution to combat the threat of digital transformation is for the organisation to embrace that very concept itself. One of the most apt phrases – ‘disrupt yourself before someone else does’ – rings true for almost any traditionally-oriented organisation.
In other words, transforming towards a digital organisation is the only way of remaining relevant with customers and increasing the value one provides to the customer. The good news is that the tools to start doing this are largely available to most organisations. We find that those still holding back and remaining rooted to their analogue ways, are generally suffering from cultural inertia or a myopic understanding of their evolving industry.
To demonstrate the possibilities of digitisation, let’s look at retailers for example. It is now possible to connect things like video surveillance, inventory management systems, customer loyalty programmes, digital storefronts, financial data, and analytics platforms. Therefore a sensor could record a box that has been turned upside down which, for instance, could potentially indicate stock theft or damage, and send an alert to supervisors. In this way, the retailer could integrate sensors into the supply chain and warehousing processes, to improve efficiencies and provide better services to its customers, while limiting the theft in transit.
Putting it into practice
Organisations can get a jump on their competition, and remain one step ahead of new challengers, by taking an ‘outside-in’ approach to their businesses. This means considering the needs of the customer as the foremost priority, and re-imagining one’s operations and innovation capabilities to fit around those needs. Often we find that existing processes and systems are no longer relevant to achieving success in the new economy.
It becomes essential to measure the levels of digitisation within the organisation, and track this progress against a defined digital strategy. It also requires new ways of thinking and new ways of leveraging existing relationships. If, for instance, a petrol forecourt already has an established partnership with a consumer goods retailer, then it could look at delivering fuel alongside a home-delivery shopping order, for example.
So, as the nature of the retail industry changes to incorporate things like home delivery, the petrol forecourt can look at new ways to add convenience to its customers’ lives. The organisations that start thinking in this way will ultimately be the ones that succeed in the rapidly-changing landscape of digital transformation. For innovative business models like this to become possible, a number of fundamentals need to fall into place: digitally focused culture, organizational rewards and incentive structures, new processes, flexible technologies, innovative strategies, and an incessant focus on data analytics of the new digital journey.
At T-Systems we believe that this thinking has the potential to culminate in what we term the ‘digital nation of South Africa’. This ideal would see organisations form ecosystems – borne from new technologies – to create efficiencies and customer value that accelerate our country’s position in the global economy.
* Kim Andersen, Account CTO at T-Systems South Africa
How we use phones to avoid human contact
A recent study by Kaspersky Lab has found that 75% of people pick up their connected device to avoid conversing with another human being.
Connected devices are becoming essential to keeping people in contact with each other, but for many they are also a much-needed comfort blanket in a variety of social situations when they do not want to interact with others. A recent survey from Kaspersky Lab has confirmed this trend in behaviour after three-quarters of people (75%) admitted they use a device to pretend to be busy when they don’t want to talk to someone else, showing the importance of keeping connected devices protected under all circumstances.
Imagine you’ve arrived at a bar and you’re waiting for your date. The bar is busy, and people are chatting all around you. What do you do now? Strike up a conversation with someone you don’t know? Grab your phone from your pocket or handbag until your date arrives to keep yourself busy? Why talk to humans or even make eye-contact with someone else when you can stare at your connected device instead?
The truth is, our use of devices is making it much easier to avoid small talk or even be polite to those around us, and new Kaspersky Lab research has found that 72% of people use one when they do not know what to do in a social situation. They are also the ‘go-to’ distraction for people even when they aren’t trying to look busy or avoid someone’s eye. 46% of people admit to using a device just to kill time every day and 44% use it as a daily distraction.
In addition to just being a distraction, devices are also a lifeline to those who would rather not talk directly to another person in day-to-day situations, to complete essential tasks. In fact, nearly a third (31%) of people would prefer to carry out tasks such as ordering a taxi or finding directions to where they need to go via a website and an app, because they find it an easier experience than speaking with another person.
Whether they are helping us avoid direct contact or filling a void in our daily lives, our constant reliance on devices has become a cause for panic when they become unusable. A third (34%) of people worry that they will not be able to entertain themselves if they cannot access a connected device. 12% are even concerned that they won’t be able to pretend to be busy if their device is out of action.
Dmitry Aleshin, VP for Product Marketing, Kaspersky Lab said, “The reliance on connected devices is impacting us in more ways than we could have ever expected. There is no doubt that being connected gives us the freedom to make modern life easier, but devices are also vital to help people get through different and difficult social situations. No matter what your ‘connection crutch’ is, it is essential to make sure your device is online and available when you need it most.”
To ensure your device lifeline is always there and in top health – no matter what the reason or situation – Kaspersky Security Cloud keeps your connection safe and secure:
· I want to use my device while waiting for a friend – is it secure to access the bar’s Wi-Fi?
With Kaspersky Security Cloud, devices are protected against network threats, even if the user needs to use insecure public Wi-Fi hotspots. This is done through transferring data via an encrypted channel to ensure personal data safety, so users’ devices are protected on any connection.
· Oh no! I’m bored but my phone’s battery is getting low – what am I going to do?
Users can track their battery level thanks to a countdown of how many minutes are left until their device shuts down in the Kaspersky Security Cloud interface. There is also a wide-range of portable power supplies available to keep device batteries charged while on-the-go.
· I’ve lost my phone! How will I keep myself entertained now?
Should the unthinkable happen and you lose or have your phone stolen, Kaspersky Security Cloud can track and protect your device from data breaches, for complete peace of mind. Remote lock and locate features ensure your device remains secure until you are reunited.
Five key biometric facts
Due to their uniqueness, fingerprints are being used more and more to quickly identify and ensure the security of customers. CLAUDE LANGLEY, Regional Sales Manager, for Africa at HID Global Biometrics, outlines five facts about the technology.
How many times in a day are you expected to identify yourself? From when you arrive at work you are required to sign in, visiting your bank, receiving healthcare services… The list is endless. When a system knows who you are, you are able to do any number common, everyday activities. Your identity is unique and precious. It is also easily stolen and the target of many hackers across the globe. Technology is constantly evolving alongside the criminal element, always looking for ways to protect data and identity. One such solution happens to be biometrics and it is rapidly gaining traction in our increasingly complex modern world.
Reliable, secure and fundamentally YOU, unique biometric traits such as fingerprints are being used by banks, enterprises and consumers to verify identity. Biometric solutions offer significant identity protection because they use unique biological details to ensure an account is only accessed by the account holder, a door only opened by the owner. Here are five things that are little known about this technology…
- The uncut identity. Your fingerprint is unique to you. Nobody can use a copy of it to impersonate you. Good technology is capable of scanning down into the layers of the fingertip to differentiate unique elements of a person’s fingerprint, this data is then encrypted and used as a key to unlocking whichever physical or virtual door that the biometric system protects.
- The living proof. No, there is nothing to the stories of fingerprints being used without their owner’s knowledge or permission. Biometric solutions can use specific variables to determine if the finger used to access the system is that of a present, living person. A copy or a fake cannot be used to access a cutting-edge biometric solution.
- Easy and convenient. Queues and documents and paperwork may well be a thing of the past should biometrics take a firmer grip of government and banking systems. The process of registering is easy, and access to identity documents and records is yours alone.
- Security blanket. A thousand passwords and a hundred post-it notes stuck on walls and drawers. An excel file with a list of sites and applications and their corresponding passwords, all a thing of the past. Nobody needs to remember their password with biometrics, they only need to show up.
- Anywhere is cool. Schools, airports, networks, offices, homes, toilets, banks, libraries, governments, border controls, immigration services, call centres, hospitals and even clubs and pubs – knowing “who” matters and biometrics can quickly and conveniently confirm your identity where needed.